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(Bloomberg) — EON SE will expand its investment program by an extra €5 billion ($5.9 billion) until the end of the decade amid mounting grid bottlenecks across Europe, as renewable energy projects and large power users compete for connections.
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The German utility said Wednesday it plans to increase spending to €48 billion between 2026 and 2030, with around €40 billion of that earmarked for its energy networks business. The move responds to a surge in wind and solar projects as well as new electricity-hungry consumers like data centers and electrified transport, with developers across the region facing delays to secure grid access.
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Network constraints are emerging as a key friction point in Europe’s push to decarbonize and electrify its economy. While EON’s expanded spending plan signals recognition that grid capacity must grow to match policy ambitions, permitting delays, supply chain shortages and public opposition to new lines continue to slow expansion.
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EON previously planned to invest €43 billion between 2024 and 2028. In an earnings statement Wednesday, it said its new spending plan “explicitly assumes appropriate regulatory conditions for its German network business.” The German grid regulator periodically determines what returns utilities are allowed to collect.
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“The energy system is becoming larger, more decentralized, and more complex, and we are ensuring that it remains secure, affordable, and resilient for our customers,” EON Chief Executive Officer Leonhard Birnbaum said in the statement. “It will remain essential for our investments to generate a fair return so that we are able to finance them sustainably.”
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EON reported adjusted earnings before interest, taxes, depreciation and amortization of €9.8 billion for 2025, coming in at the upper side of its expected range and slightly above analyst estimates, according to data compiled by Bloomberg.
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It foresees earnings for the current year in the range of €9.4 to €9.6 billion and expects them to rise to around €13 billion by 2030.
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