German utility EnBW Energie Baden-Wuerttemberg AG (EBK.XE) said Thursday it plans to invest heavily in renewable energies in coming years to ensure it remains a power generator that emits relatively little carbon dioxide, even after all of Germany's nuclear reactors are shut down at the end of 2022.

Speaking to shareholders at the company's annual general meeting, Chief Executive Hans-Peter Villis also reiterated the company's outlook for falling earnings this year and next. EnBW only expects to increase profits again from 2014, Villis said.

For 2012, the company expects its adjusted earnings before interest, taxes, depreciation and amortization to drop by 10% to 15% on the year.

"This trend will continue in 2013," said Villis, adding that adjusted Ebitda next year is expected to fall 15% to 20% below the 2011 level, as full auctioning of carbon dioxide emissions allowances under the European Union's emission trading scheme will further hit profits.

Only from 2014 does EnBW expect earnings to improve again as the commissioning of new power plants as well as cost cutting are expected to help lift earnings to the 2012 level, said Villis.

He also said that EnBW intends to increase its renewables power generation capacity by 3,000 megawatt by 2020, more than double its present renewables capacity.

Villis added, however, that EnBW will also continue to invest in conventional power generation capacity like gas-fired power plants.

"EnBW is convinced that Germany will continue to require baseload-capable and flexible large-scale conventional power plants," Villis said.

The company also aims to keep its total power generation capacity stable at around 15,000 megawatt, Villis added.

His comments come after Germany's government last year decided to accelerate its planned exit from nuclear energy following the reactor accidents in Japan, which also resulted in the immediate shut-down of two of EnBW's reactors and brought forward the shut down dates of its remaining nuclear plants.

EnBW has been heavily dependent on nuclear reactors, which accounted for about half of the company's electricity production, before Germany 's policy reversal.

The political u-turn on nuclear energy resulted in a hefty net loss in 2011 at EnBW as the company had to write off the value of its reactors that were idled earlier than had been expected and increase nuclear provisions for early dismantling of its plants.

To mitigate the financial burden from the German nuclear exit decision, EnBW has pledged to sell EUR1.5 billion in assets, cut costs by EUR750 million and reduce investment.

It also raised around EUR1 billion in hybrid bonds and plans to increase its share capital by at least EUR800 million.

EnBW is jointly controlled by the German state of Baden-Wuerttemberg and OEW, a group of southern German municipalities, which each own 46.5%. Both have pledged to equally participate in the planned capital increase.

The capital increase is expected to be approved by Thursday's annual general meeting.

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