OREANDA-NEWS. December 15, 2015. Fitch Ratings says in a new report that German utilities have radically reviewed their strategies in an attempt to protect cash generative businesses in networks, renewables and supply from the uncertainty associated with generation and with the evolution of the energy reform "Energiewende".

Renewable projects will continue to offer good returns. However, growth may be limited by government capacity targets capped at 6.5GW by 2020 for off-shore wind and 2.5GW per year for on-shore. Germany's focus on renewables has led to secondary problems in the system such as increasing carbon dioxide emissions, as coal is one of the most profitable fuels in the current price environment, despite being the most polluting.

The outlook for German integrated utilities remains negative as companies are left with few levers to manage their balance sheets while the external pressure continues.

The report, entitled "Energy Transition Affecting German Utilities", is available at www.fitchratings.com or by clicking the link above. Additional information on our sector and rating outlook for German utilities is available in "2016 Outlook: EMEA Utilities" published on 8 December.