RWE’s Dual Narrative: Expansion Momentum Meets Policy Scrutiny

The German energy giant RWE finds itself navigating contrasting currents. While the company accelerates its renewable energy footprint in Southern Europe, a confidential policy proposal has sparked debate in its home market, presenting investors with a complex picture of operational progress against political friction.

Barclays Maintains Bullish Stance Amid Share Buybacks

On February 24, Barclays reaffirmed its positive outlook on RWE, maintaining an “Overweight” rating alongside a 60 Euro price target. According to analyst Peter Crampton, whose comments were cited by MarketScreener, the strategic recommendations submitted to the German government are likely to be viewed favorably by the market.

Concurrently, RWE continues to execute its substantial share repurchase initiative. As detailed in its 12th interim report covering February 16 to 20, the company bought back 405,334 shares. Since the third tranche of the program began on December 3, 2025, total repurchases have reached 4,547,164 shares. This tranche, valued at 500 million euros, is set to run until June 2026 at the latest, as part of a broader buyback scheme authorized for up to 1.5 billion euros.

Trading at 53.78 euros on Friday, RWE’s share price hovered just 1.3% below its 52-week high of 54.50 euros. The stock has delivered a remarkable year-to-date gain of 78.85%, demonstrating resilience and maintaining proximity to recent peak levels despite ongoing discussions surrounding its policy positions.

Italian Renewable Portfolio More Than Doubles

In a significant operational update on February 26, RWE announced it has more than doubled its under-construction wind and solar capacity in Italy, bringing the total to 235 megawatts (MW). This expansion follows 112 MW of projects launched in 2025, with an additional 123 MW added in 2026. Once completed, these facilities are expected to generate enough electricity to power the equivalent of over 190,000 households.

Should investors sell immediately? Or is it worth buying Rwe?

Key projects in this Italian pipeline include:
– The 66 MW Alas onshore wind farm on Sardinia, scheduled for commissioning in 2027.
– The Ponte Valentino 1 & 2 solar parks in Campania, with a combined capacity of 19 MWac.
– A portfolio of four Agri-PV projects located in Campania, Sicily, and Calabria, totaling 38.2 MWac.

Furthermore, construction is imminent on the 42 MW Serra Giannina wind farm in Basilicata. RWE’s existing operational footprint in Italy already comprises 17 onshore wind parks with a combined installed capacity of 589 MW.

Confidential Proposal Sparks Controversy in Berlin

Parallel to its expansion news, a report in Handelsblatt on February 24 revealed details of a confidential document RWE submitted to the German federal government. Citing this investigation, Business Insider reported that RWE is advocating for auction design criteria that would favor gas-fired power plants while effectively excluding battery storage systems from eligibility.

The company’s reported rationale centers on the assertion that only gas plants can guarantee security of supply during extended periods of calm and cloudy weather, known as “Dunkelflauten.” The document also allegedly opposes recommendations from Germany’s Federal Cartel Office (Bundeskartellamt) aimed at more stringently limiting the market power of large energy producers.

This stance has drawn criticism. Philipp Schröder, CEO of 1Komma5 Grad, was quoted by Business Insider as labeling the adoption of such positions “politically and economically negligent.”