News Roundup
RWE to Buy ConEd’s Renewable Energy Businesses
U.S. power company Consolidated Edison (ConEdison) has agreed to sell its three renewable energy subsidiaries, including more than 4 gigawatts of renewable energy projects, to Germany’s RWE AG for $6.8 million. The sale of Con Edison Clean Energy Businesses Inc. is subject to conditions including approval by federal regulators and is expected to close in the first half of 2023.
When the deal closes, it will increase RWE’s U.S. renewable energy portfolio to 7.2 gigawatts of online generation assets and grow its U.S. onshore wind, solar, and battery pipeline to more than 24 gigawatts. RWE has noted this will lead to a more geographic balance in its portfolio and make it the second-largest operator of solar plants in the United States. RWE will also gain roughly 500 workers in the acquisition.
Source: Con Edison Announces Agreement to Sell Renewable Energy Subsidiaries (ConEdison)
GE to Lay Off 20% of Onshore Wind Workforce
Citing anonymous employees, reports by Reuters and CNBC state that General Electric (GE) is laying off 20% of the workers in its onshore wind division, totaling hundreds of workers. These employees state that the layoffs are taking place in North America, Latin America, the Middle East and Africa. GE has not confirmed the layoffs but has stated that it is “streamlining” its onshore
wind business.
Sources cited by these publications state that GE is dealing with weak demand, rising costs, and supply-chain challenges. In aggregate, GE’s renewable energy businesses employed 38,000 workers globally at the end of 2021. The conglomerate has plans to spin off its entire energy business, including these renewable energy businesses, as a separate company in 2024.
News coverage: Exclusive: GE lays off workers at onshore wind unit as part of turnaround strategy (Reuters)
News coverage: GE is laying off 20% of its U.S. workforce devoted to onshore wind power, costing hundreds of jobs (CNBC)
Guggenheim: Solar, Wind Generation Much Lower Cost than Natural Gas
U.S. electricity generation from solar is an average 33% lower-cost than natural gas-fired electricity generation, and wind is 44%lower, according to a note by Guggenheim securities cited by Bloomberg. An analyst note cited by the publication states that solar and wing represent “a deflationary opportunity for electricity supply costs” which “supports the case for economic deployment of renewables across the US.”
News coverage: Solar Is Now 33% Cheaper Than Gas Power in US, Guggenheim Says (Bloomberg)
