German electricity giant E.ON will spin off its 50GW fossil fuel business and instead focus on renewables, energy efficiency and distribution, its board decided on Sunday.
The utility, one of Europe’s largest, hopes to position itself in a renewables-led “new world” which it believes “will grow faster than the conventional energy world”, CEO Johannes Teyssen said.
To date the company has tried to straddle both the conventional energy sector, based around big power stations, and emerging sectors including smart metering, micro-CHP and energy efficiency. But it has now decided that there are too many contradictions between the two sides of its business to continue with both, Mr Teyssen explained on Monday.
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