RWE sets out next steps as $1.2bn deal for UK offshore wind projects completes
German utility bought Norfolk projects off East Anglia from Vattenfall and now will try to gain a CfD for two furthest developed of them – Norfolk Vanguard East and West
RWE has boosted its (pro rata) offshore wind development pipeline in the UK to 7GW after completing the acquisition of the three Norfolk projects from Vattenfall.
The German utility is developing nine projects in the UK part of the North Sea, which will have a joint capacity of 9.8GW once built (as RWE in some projects also has partners). The company is currently building the 1.4GW Sofia array and already operates ten offshore wind farms in the country.
RWE said it will take over most of the Norfolk development team from Vattenfall, and expects to commission all three projects this decade.
“Over the past 13 years, the Norfolk team has done a great job in developing the three offshore wind projects,” RWE Offshore Wind CEO Sven Utermöhlen said.
“I am very happy to welcome them to our global offshore wind team and we will rely on their expertise to take forward the projects’ delivery in one of the world’s most attractive regions for offshore wind. Equally, I am looking forward to continuing the work with our supply chain partners.”
RWE’s acquisition of the Norfolk projects had raised some eyebrows as Vattenfall CEO Anna Borg previously had said her company would discontinue their development as the “profitability doesn’t add up.”
“We are convinced that we have bought a highly attractive portfolio of projects in one of our core markets from Vattenfall,” Michel stressed.
RWE today said Norfolk Vanguard West and Norfolk Vanguard East are the most advanced of the three projects, having secured the procurement of most key components. The utility said it will now try to secure a contract for difference (CfD) for them in one of the upcoming auctions.
As a next step, the RWE Norfolk team will work on securing preferred supplier agreements for all key components and will then enter the project in a CfD auction at a later date.