The investment outlay is part of RWE’s Strategy Agenda 2012 plan, which seeks to focus on international expansion and increasing efficiency in Germany. This is considered a shift from the previous CEO, Harry Roel’s strategy of consolidating the highly leveraged group.

Mr Grossman has noted that, though the major bulk of the E30 billion investment focuses on international projects, RWE’s main focus remains the German market. He observed that because of cartel restrictions, growth opportunities in Germany have considerably decreased.

RWE is seeking to earn 40-50% of its operating profits in international markets by 2012, with profits from international operations share standing at 36% of the company’s overall profits in 2008. While Russia and Turkey remain RWE’s most favored investment destinations, nuclear power projects in Bulgaria and Romania have also attracted its interest.

The German utility is also considering a joint bid with Swedish electricity generator Vattenfall, for the UK-based nuclear power generator British Energy.

RWE is also expecting to implement its aggressive cost-cutting plan in Germany, along side its international expansion drive. Mr Grossman noted that the utility will be increasing its annual cost reduction target from E600 million, by the 2008 year-end.