Eddie O’Connor-led group’s offshore windfarms to be operational by 2020

A consortium led by Eddie O’Connor’s Mainstream Renewable Power (MRP) has been given consent by the UK government to develop a massive 1.2 gigawatt series of windfarms off the coast of Yorkshire.

The Hornsea 1 project, a joint venture between MRP’s SmartWind tie-up with SiemensProject Ventures and also the Danish company Dong Energy, will generate enough electricity to power 800,000 homes.

Mr O’Connor, a former Bord na Mona chief executive, has previously said the initiative could cost up to £3.5 billion (€4.4 billion) to develop. The Irish company owns a third of the project, with Siemens providing much of the financing and MRP contributing much of the development experience.

The windfarms are due to be operational by 2020, the joint venture partners said on Wednesday.

UK planning officials said Hornsea 1, which will incorporate three separate windfarms, will need between 150 and 332 wind turebines, depending upon their size.

Mark Paul

The UK Government has given development consent to Hornsea offshore wind project, which will consist of three wind-generating stations with a combined capacity of up to 1,200MW.

Once operational, the Hornsea Project One is expected to provide ample energy resources to suffice requirement of more than 800,000 homes in the UK.

The project will be located at 64 miles distance from the Yorkshire coast. It is one of eight renewable energy developments awarded a contract for difference (CFD) in April 2014.

The CFDs were a part of the UK Government’s initiatives to attract energy investments and lower renewable power charges for customers.

UK Planning Inspectorate chief executive Simon Ridley said: “The Examining Authority took full account of views from communities, particularly those near the north-east coast of England who might be affected by this proposal, alongside national policy and evidence of the need for the project.”

Department of Energy and Climate Change (DECC) Energy Secretary Ed Davey said: “Making the most of Britain’s home-grown energy is crucial to creating job and business opportunities in the UK, getting the best deal for consumers and reducing our reliance on foreign imports.

“Wind power is vital to this plan, with £14.5bn invested since 2010 into an industry which supports 35,400 jobs.”

SMart Wind, which is a 50:50 joint venture between Mainstream Renewable Power and Siemens Project Ventures and DONG Energy, will be taking the project forward.

Fugro GeoConsulting has won a £13m contract for conducting geotechnical surveys for Project One, DECC informs.

Project One is a part of the wider Hornsea Offshore Wind Farm zone, which has energy capacity of 4GW.

Danish power firm Dong Energy has acquired the Borkum Riffgrund West 2 offshore wind project in Germany from Energiekontor.

Application for setting up grid link for the project is likely to happen in 2017 or 2018.

Construction for the project is expected to start by 2020, once grid connection is approved and the developers agree on a final investment decision.

The wind farm will have a generation capacity of 215MW.

It will be located near Dong Energy’s German offshore wind development project 312MW Borkum Riffgrund West 1 project, and will be equipped with 43 turbines.

Dong Energy Wind Power executive vice president Samuel Leupold said: “With the Borkum Riffgrund West 2 project we are now strengthening our post-2020 pipeline.

“Having our other offshore wind project, Borkum Riffgrund West 1 right next to it, there are a number of synergies for the development, construction, and operation of this project.”

As well as the Borkum Riffgrund West 1 and 2 offshore projects in the German North Sea, Dong Energy also has Gode Wind 1+2 with a combined capacity of 582 MW under its portfolio.

Germany plans transition to renewable energy supply, with it needing to install 15GW of offshore wind power by 2030.

With almost one-third of all offshore wind projects in Europe under its portfolio, Dong Energy has built almost 2.5GW of such projects till date. The firm intends to take it up to a total of 3.5GW by 2020.

Image: Borkum Riffgrund West 2 offshore wind project will generate about 215MW of energy. Photo: courtesy of DONG Energy A/S.

European Bank for Reconstruction and Development (EBRD) has offered a KZT14bn (€59.2m) loan to Wind Power Yereymentau, a special-purpose vehicle in Kazakhstan, for development of a 50MW wind power project in the country.

The project will be the first large-scale wind farm in Kazakhstan that will be financed under the new feed-in-tariff mechanism.

Located in Yereymentau in central Kazakhstan, the scope of the plan will involve construction, commissioning and launch of a greenfield 50 MW wind power plant, which will then need to be connected to the power transmission grid.

Besides EBRD, Clean Technology Fund (CTF) will offer up to €18m of concessional financing for the project, which is the first for the country.

Kazakhstan’s national energy company JSC Samruk-Energo will guarantee the loan for the Yereymentau Wind Park.

JSC Samruk-Energo management board chairman Almassadam Satkaliyev said: “The signing of this loan agreement is in line with Kazakhstan’s low-carbon economy agenda.

“This year we are completing the construction of the first wind farm with a 45 MW capacity.

“Our partnership with the EBRD and the CTF will enable us to increase capacity up to 95 MW.”

EBRD energy and natural resources managing director Riccardo Puliti said: “Supporting clean energy projects is at the core of the EBRD’s mandate.

“We stand ready to help Kazakhstan unlock its potential in renewables by financing pilot projects with strong local and foreign companies.”

The project will road-test the new regulations in the country, which include the renewable energy law introduced in June 2013.

It will also set the benchmark with regard to developing, building and operating a greenfield renewable project.

German wind turbine manufacturer Nordex has won a contract from wpd europe for supplying 12 Generation Delta turbines for the 36MW Jokela wind project in Finland.

As well as delivery and installation of the N117/3000 generation delta wind turbines at the farm, Nordex has signed a 15-year premium service contract for the project.

Each of the turbines to be installed at the 36MW wind farm comes with a hub height of 141m and an installed nominal output of 3MW, Nordex said.

Specially designed for medium wind speeds, the turbine models also have their cold-climate versions which Nordex plans to install in view of difficult weather conditions at the site.

The Jokela wind farm is scheduled to be constructed from mid-2015. It is likely to have a production output of 119GWh annually.

Located near the town of Kalajoki in western Finland, the project is wpd’s second collaboration with Nordex. The first was an order for eleven Nordex N117/3000 turbines for the Mäkikangas wind farm.

wpd country manager for Finland and Sweden Birgit Schneider said: “On the basis of their technical specifications, the N117/3000 turbines are a very good fit for the local weather conditions and we are eagerly awaiting the preliminary results following the start-up of our ‘Mäkikangas’ wind farm.

“We are confident of having found in Nordex a partner for the two wind farms capable of providing an ideal combination of technology and service.”

Dutch transmission operator TenneT has selected a consortium of Arcadis and Pondera Consult to compile an environmental impact report (EIR) and drive permit applications for a 1.4GW grid connection intended to support two 700MW offshore wind farms in the North Sea.

The offshore platforms at Borssele wind energy area will house four 350MW units.

Each of the platforms will be connected to TenneT’s expanded 380kV high-voltage substation in Borssele via two 220kV cables.

The consortium will prepare documents required for taking decisions as well as offer strategic advice on the permits process and stakeholder management.

TenneT Offshore NL senior manager Marco Kuijpers said: “The planned route map for the development of renewable energy in the Dutch section of the North Sea is ambitious.

“For large-scale infrastructural projects like this one, proper collaboration with all stakeholders is of great importance.

“We need to join forces and get going with the clearly-structured plan for the development of offshore wind presented in September by the Ministry of Economic Affairs.”

Borssele wind energy area is the first of the three government-selected zones for construction of 3.5GW offshore wind energy in the Netherlands.

The Ministry of Economic Affairs in the Netherlands has selected TenneT as operator of the offshore grids which will be set up for the wind projects.

The UK Green Investment Bank (GIB) has bought a 20% stake in Sheringham Shoal offshore wind farm, England, for £240m.

The 317MW wind farm is owned by Statkraft and operator Statoil through Scira Offshore Energy.

After the deal, Statoil and Statkraft will own a 40% stake each in the project.

Sheringham Shoal is located in the Greater Wash area, between 17km and 23km off the coast of Norfolk. It has been operating since October 2012.

The wind farm generates more than 1.1TWh of net renewable electricity annually, which is sufficient to power around 220,000 homes.

GIB sees the investment as part of a wider strategy to strengthen the UK offshore wind sector. The sale will provide Statoil and Statkraft with funds that can be invested in new renewable projects.

The bank expects the move to also attract new investors into the sector.

GIB plans to create an operating offshore wind fund and transfer the stake in Sheringham to the fund as seed asset.

UK GIB CEO Shaun Kingsbury said: “This is an important investment for the UK offshore wind sector in two respects.

“Firstly, it allows two strategically important investors, Statkraft and Statoil, to take part of their investment in an operating project and reinvest it in other projects.

“Secondly, we intend, in time, to transfer the asset to our proposed operating offshore wind fund, which is intended to attract new investors and new capital to the UK.”

GIB has so far invested around £620m in five offshore wind projects in the UK, with a total capacity of more than 1.8GW.

Statkraft and Statoil have plans to develop more offshore wind projects in the UK, including the 402MW Dudgeon offshore wind project under construction just off the Norfolk coast. It is expected to be commissioned in 2017.

Statkraft senior vice-president for offshore wind lav Hetland said: “As Europe’s leader in renewable energy and a long-term investor in the UK, we have firm growth ambitions in the UK’s offshore wind sector.

“This agreement enables further investments in project development while at the same time maintaining our industrial role as operator of Sheringham Shoal offshore wind farm.”

Denmark-based DONG Energy has been selected by the Isle of Man government in the UK for construction of a 700MW offshore wind power project in the Irish Sea.

Parts of the territorial waters and seabed under the Isle of Man will be leased for tidal and offshore power developments, reports Reuters.

DONG Energy won the bid for the lease and will now set up the wind farm off the east coast of the Isle of Man. Dutch energy firm Tocardo Tidal Energy has also received another lease from the government for surveying a potential tidal project.

Meanwhile, local firm Manx Tidal Energy has won two more leases also for tidal power development in the territory.

Possible sites for the tidal energy schemes will be around the Point of Ayre, Calf of Man and Castletown, according to Reuters. The government is expecting the leases to generate around £5m ($8m) annually.

Leases are granted for 25 years, however can be further extended for another 25 years, reports ReNews.

Power generated from the sites will be supplied to meet energy requirements in the UK. Surveys for the project sites are likely to start by 2015.

UK’s Department of Energy and Climate Change (DECC) has granted the development consent order for the Walney Extension offshore wind farm to Danish developer DONG Energy.

The consent order covers all aspects of the project, including the turbines, offshore and onshore substations, array cables and export cable.

These developments are an extension for the Walney I and II offshore wind farms. The project will be located off the Walney Island amidst the Irish Sea. This setting promises high-wind potential but also difficult ground conditions.

Up to 207 wind turbines are likely to be installed at the farm, informed DECC. Once operational, it will power more than half a million UK households.

UK energy and climate change secretary Edward Davey said: “Another large wind farm is now closer to being built and each one gives us more home-grown, clean and secure energy supplies.

“This government has worked tirelessly to re-balance the economy and create more green jobs. This project alone is expected to create 230 new jobs during the construction phase and many more opportunities throughout the UK economy.

Expected to be built over four years from 2016 to 2019 with 6MW to 8MW turbines, the project can generate 185 jobs annually over its expected 25-year lifespan.

Walney Extension is one of five offshore wind projects and one of the three DONG Energy projects, which had signed up to the Contract for Difference, aiming at low-carbon power generation.

DONG Energy UK Wind Power vice-president Benj Sykes said: “Walney Extension is expected to have generation capacity of up to 660MW, with the potential to power up to half a million homes.

“This decision to grant development consent now clears the way for the company to make a final investment decision on the project.

“With consent also granted to the Burbo Bank Extension project recently, this really underlines our commitment to investing in the UK and helping us move towards a low carbon economy.”

The final investment decision for the project is yet to be taken by the developers.

ScottishPower Renewables, a subsidiary of Iberdrola, and Dong Energy have opened the 389MW West of Duddon Sands offshore wind farm, which is a major renewable project for the UK.

The new facility is located in the Irish Sea.

UK Energy Secretary Edward Davey cut the ribbon for the €2bn facility, which is equipped with 108 of Siemens’ 3.6MW wind turbines and has more than 200km of undersea cable installations.

Standing almost 20km away from the Barrow-in-Furness coastline in North West England, the now-operational wind farm will generate enough electricity to power 280,000 UK households.

A new £50m offshore wind terminal has been built at Belfast Harbour to support the project, which is the first purpose-built offshore wind installation and pre-assembly harbour in the UK and Ireland.

Energy secretary Edward Davey said: “This wind farm will generate enough clean electricity to power more than a quarter of a million homes and give the local economy a major and sustained boost.

“We want an energy mix that is built on diverse, home-grown sources to make sure our supplies are clean and secure. Wind has a huge role to play, which is why the UK is the best place in the world to invest in offshore wind projects.”

ScottishPower chairman Ignacio Galan said: “West of Duddon Sands is the first offshore wind farm in the UK to use such highly advanced construction methods, allowing us to complete the project months ahead of schedule.

“It has tested the UK’s ability to deliver major renewable energy projects, in terms of workforce skills, supply chain depth, facilities and logistics.”

Dong Energy wind power executive vice-president Samuel Leupold stated: “The UK is an important market for our company and we have committed investments totalling more than £5bn here over the last decade. We expect to invest a similar sum again by 2020, with another offshore wind farm under construction, and four more in planning or development.”

The West of Duddon Sands facility is the eighth operational wind farm for Dong Energy in the UK.