By Forrest Crellin
PARIS (Reuters) -French utility Engie is slowing its development of new U.S. renewable energy projects due to uncertainty over tariffs on imported materials needed for solar installations and batteries, it said on Thursday.
U.S. President Donald Trump has slapped tariffs on all of the country’s top trade partners, including China, the main producer of the world’s solar panels and batteries, although recent negotiations have seen the duties slashed.
Engie, Europe’s largest gas network operator, also has a growing renewable energy asset base, particularly in the U.S., with 11 gigawatts of renewables and storage installed or under construction.
However, finance chief Pierre-Francois Riolacci told journalists on a call that the group was slowing down approvals of new U.S. projects because of uncertainty over tariffs, “and because, in reality, we have difficulty… defining what the final price is that we are able to transfer to customers”.
He added he was confident in the long-term potential of renewable energy and batteries due to strong electricity demand growth in the U.S.
Riolacci’s comments came as Engie reported a 0.5% year-on-year rise in earnings before interest and tax (EBIT), excluding nuclear power, to 3.7 billion euros ($4.14 billion).
The group’s renewables and flex power divisions recorded a 15% drop in EBIT due to lower hydropower output and weaker European power and gas prices. However, its network operations – which includes transmission grids and gas transit – saw a 63% EBIT increase.
Engie maintained its 2025 forecast for net recurring income of 4.4 billion to 5 billion euros.
The market will likely see the guidance as conservative with potential to increase if second-quarter performance is again robust, analysts at JPMorgan said.
($1 = 0.8932 euros)
(Reporting by Forrest Crellin; Editing by Christopher Cushing, Sonia Cheema and Jan Harvey)
