ESSEN, Germany, March 13 (Reuters) - German energy group Innogy sees growing competition in key areas of its business, including renewables, where bid-based tender systems have replaced incentive schemes to lower the cost for solar and wind power.
“Competition is intensifying right now. But as a listed company, we do not pursue projects at any price,” Chief Executive Peter Terium told journalists at the group’s annual press conference on Monday.
Core earnings (adjusted EBITDA) from renewables accounted for 16 percent of Innogy’s total but were down 18 percent to 671 million euros ($716 million) in 2016, partly due to low wind levels.
Terium also said the group planned to enter new markets in its gas networks business in eastern Europe via small acquisitions. “We have experience in this area and we want to make use of it,” he said. ($1 = 0.9370 euros) (Reporting by Christoph Steitz and Vera Eckert; Editing by Edward Taylor)