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Released June 15, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The largest wind energy deal in U.K. history has been struck between ScottishPower Renewables (SPR) (Glasgow, Scotland) and engineering company Siemens AG (NYSE:SI) (Munich, Germany).
Siemens has been contracted to supply 102 of its new 7-megawatt (MW) turbines for the £2 billion ($3.1 billion) East Anglia ONE windfarm off the southeast coast of England. The SWT-7.0-154 turbine, built around a direct-drive transmission system like its 6-MW predecessor, was launched in March.
SPR, part of energy giant Iberdrola S.A. (MCE:IBE) (Bilbao, Spain), said that it is the "biggest deal" ever concluded for a consented project in the U.K.'s wind energy sector. SPR also said it will be one of the most cost-effective. The company has promised a cost of electricity set at £119 per megawatt-hour (MWh) after securing a Contract for Difference (CfD) in the U.K. government's electricity auction earlier this year. This compares with £140 to £150/MWh at other offshore wind projects awarded CfD contracts during 2014, ScottishPower Renewables stated.
When commissioned in 2020, the windfarm will have a total generating capacity of 714 MW and supply enough power for about 500,000 homes. The final version is a lot smaller than the original 1,200-MW project that was granted planning permission last June. The reduction was based on the smaller size of the CfD agreed with the government, which guarantees electricity prices for the developer for a set period of time. For additional information, see June 25, 2014, article - Green Light for Largest U.K. Renewable Energy Project.
The deal was welcomed by Amber Rudd, the U.K.'s new secretary for Energy and Climate Change: "This massive financial investment is great news for East Anglia and for Hull, which will now become a real clean energy manufacturing hub. In addition to supporting thousands of U.K. jobs, this project shows we are driving down the costs of offshore wind; another demonstration of how the government is developing the full potential of the offshore wind sector at the lowest cost to bill payers."
"East Anglia ONE will be the most cost-effective offshore windfarm ever delivered," said Keith Anderson, chief executive officer (CEO) of SPR. "Selecting the turbine supplier will be the single largest agreement for East Anglia ONE, and the most significant in terms of achieving important cost-reduction goals. We are confident that we have selected the most efficient offshore wind turbines in the world, and we look forward to working with Siemens to deliver a successful project."
Michael Hannibal, CEO offshore of Siemens Wind Power and Renewables Division, said: "Our advanced model of our proven Direct Drive wind turbine with an output of 7 MW will leverage the energy output of East Anglia One Offshore Windfarm and contribute to lowering the cost of electricity. We will manufacture the wind turbine blades for East Anglia One at our new factory in Hull."
East Anglia ONE was the largest renewable energy project ever to receive planning consent last summer in England and Wales. It will be the first of six potential projects in the Norfolk Bank Zone, which has a potential generating capacity of 7,200 MW.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Siemens has been contracted to supply 102 of its new 7-megawatt (MW) turbines for the £2 billion ($3.1 billion) East Anglia ONE windfarm off the southeast coast of England. The SWT-7.0-154 turbine, built around a direct-drive transmission system like its 6-MW predecessor, was launched in March.
SPR, part of energy giant Iberdrola S.A. (MCE:IBE) (Bilbao, Spain), said that it is the "biggest deal" ever concluded for a consented project in the U.K.'s wind energy sector. SPR also said it will be one of the most cost-effective. The company has promised a cost of electricity set at £119 per megawatt-hour (MWh) after securing a Contract for Difference (CfD) in the U.K. government's electricity auction earlier this year. This compares with £140 to £150/MWh at other offshore wind projects awarded CfD contracts during 2014, ScottishPower Renewables stated.
When commissioned in 2020, the windfarm will have a total generating capacity of 714 MW and supply enough power for about 500,000 homes. The final version is a lot smaller than the original 1,200-MW project that was granted planning permission last June. The reduction was based on the smaller size of the CfD agreed with the government, which guarantees electricity prices for the developer for a set period of time. For additional information, see June 25, 2014, article - Green Light for Largest U.K. Renewable Energy Project.
The deal was welcomed by Amber Rudd, the U.K.'s new secretary for Energy and Climate Change: "This massive financial investment is great news for East Anglia and for Hull, which will now become a real clean energy manufacturing hub. In addition to supporting thousands of U.K. jobs, this project shows we are driving down the costs of offshore wind; another demonstration of how the government is developing the full potential of the offshore wind sector at the lowest cost to bill payers."
"East Anglia ONE will be the most cost-effective offshore windfarm ever delivered," said Keith Anderson, chief executive officer (CEO) of SPR. "Selecting the turbine supplier will be the single largest agreement for East Anglia ONE, and the most significant in terms of achieving important cost-reduction goals. We are confident that we have selected the most efficient offshore wind turbines in the world, and we look forward to working with Siemens to deliver a successful project."
Michael Hannibal, CEO offshore of Siemens Wind Power and Renewables Division, said: "Our advanced model of our proven Direct Drive wind turbine with an output of 7 MW will leverage the energy output of East Anglia One Offshore Windfarm and contribute to lowering the cost of electricity. We will manufacture the wind turbine blades for East Anglia One at our new factory in Hull."
East Anglia ONE was the largest renewable energy project ever to receive planning consent last summer in England and Wales. It will be the first of six potential projects in the Norfolk Bank Zone, which has a potential generating capacity of 7,200 MW.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
