By Christoph Steitz and Tom Käckenhoff

FRANKFURT/DUESSELDORF (Reuters) -German energy group E.ON plans to invest about 27 billion euros ($30 billion) in its core business, including networks and retail power, by 2026, it said on Tuesday, joining rivals in launching ambitious funding offensives.

E.ON will spend around 22 billion euro on its power and gas distribution network, Europe’s biggest, and 5 billion on customer services through which E.ON provides approximately 50 million customers throughout Europe.

RWE, Germany’s largest electricity producer, announced a budget of 50 billion Euros to boost its renewables capabilities. This comes as Europe’s power companies are accelerating their green power plans.

E.ON shares were flat during Frankfurt trade, despite the fact that they will be holding a capital market day later, Tuesday. A trader stated that the announcement was not a positive surprise and that investors will need to believe the news throughout the day.

E.ON has set a five-year goal to generate between 2 and 4 billion euros from assets sales or partnerships. Additionally, E.ON will be aiming for additional annual savings of 500 millions euros each year until 2026 as part of its 5-year plan.

E.ON stated that the core business’ adjusted earnings before interest tax, deduction, amortization (EBITDA), is projected to be 7.8 billion euro in 2026. This would mean a compound annual growth rate around 4% between 2021 and 2026.

Leonhard Birnbaum was appointed CEO of E.ON in April. He stated that “the decarbonization Europe’s economies places Europe’s energy industry at the threshold for a key decade growth.”

E.ON has also suggested that it pay 0.49 euros per share to 2021 in addition to 0.47 euros for 2020. It is consistent with Refinitiv’s consensus.

The current dividend policy of the company, with an expected annual growth rate up to 5% per year, was extended for three more years, according to it.

($1 = 0.8883 euros)