Volkswagen Invests in Expanding Wind and Solar Farms

Volkswagen Group is taking significant steps to balance the energy consumption of its electric vehicles (EVs) that are still being charged using conventional electricity. The company is committing millions of euros to this initiative.

Despite recent challenges in the demand for EVs, Volkswagen continues to invest in wind and solar energy. “Alongside the ongoing sales of ID. models, we plan to expand our commitment to renewable energy every year,” said Andreas Walingen, Chief Strategist of Volkswagen’s core brand. However, Volkswagen has not disclosed specific details about new projects or expansion targets, noting that these depend on how the demand for EVs evolves.

In 2020, Europe’s largest car manufacturer announced plans to invest €40 million in new wind and solar farms across Europe by 2025. For implementation, Volkswagen collaborates with local energy providers. The first project, developed with RWE, became operational at the end of 2021. To date, 26 installations are active in nine European countries, including eight wind farms and 18 solar farms, Walingen confirmed.

Supplying Electricity for 300,000 Homes

Volkswagen’s strategy focuses on a large-scale expansion of wind and solar parks in Europe to enable the carbon-neutral operation of its electric vehicles, Walingen explained. By building new renewable energy projects, the company aims to offset the electricity consumption of its EVs that still rely on conventional energy sources.

Last year, these renewable energy facilities collectively supplied 1.1 terawatt-hours to the electricity grid. This output corresponds to the energy needs of approximately 300,000 households or the estimated electricity consumption of all Volkswagen ID. models currently on European roads, which are not yet powered by entirely green energy.

Challenges in the EV Market

Volkswagen is currently facing significant challenges, including a slowdown in its business in China and reduced demand for EVs. Sales in China, one of its largest markets, dropped by nearly 10%, while global deliveries of electric vehicles fell by 3.4%. In the United States, the decline was even sharper, with EV sales plummeting by 30%.

Despite these setbacks, Volkswagen delivered 745,000 electric vehicles across all its brands globally last year. However, only one in twelve new vehicles sold was a fully electric model.

By strengthening its investment in renewable energy, Volkswagen aims to not only support the transition to sustainable mobility but also to counteract the challenges currently faced by the EV market.