Glasgow-based Scottish Power has named German engineering conglomerate Siemens as its preferred turbine supplier for the East Anglia ONE offshore windfarm in the biggest deal ever concluded for a consented project in the UK’s wind energy sector.
The turbine agreement, which will be the largest individual contract placed as part of the £2 billion project, will see up to 102 of Siemens’ 7 megawatt (MW) turbines supplied.
East Anglia ONE aims to create around 3,000 jobs in total, with up to half of these jobs supporting the turbine contract. The project is Scottish Power and Iberdrola’s third offshore windfarm and, when completed, will be able to power around 500,000 homes.
More than half of the project components and services will be made and sourced in the UK. As part of the turbine agreement, Siemens will use their new facility in Hull for manufacturing the wind turbine blades for this project.
Scottish Power will now be able to accelerate discussions with port facilities in the East Anglia region that will be critical to the construction of the project. The company will also work closely with Siemens to maximise the training and employment opportunities across East Anglia to support the turbine contract.
Scottish Power is owned by Spain’s Iberdrola Group, one of the largest energy companies in Europe. As well as being a retail energy supplier, Scottish Power manages manages more than 5.6 million retail customer accounts in Scotland and former ManWeb and Swalec territories in north west England and south Wales.
British energy minister Amber Rudd, said: “In addition to supporting thousands of UK 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.”
Keith Anderson, Chief Executive, Scottish Power, said: “East Anglia ONE will be the most cost effective offshore wind farm ever delivered. 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, Chief Executive, Siemens Wind Power and Renewables, explained: “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 Wind Farm 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 and work with Scottish Power to further promote the growth of the UK offshore industry.”
Scottish Power is delivering a large cut in the cost of offshore wind power through East Anglia ONE, with a cost of electricity set at £119/MWh after a successful bid in the competitive UK Government auction held earlier this year for a Contract for Difference (CfD).
This has been made possible by Scottish Power’s use of advanced technology, such as larger and more efficient turbines, and compares with £140-£150/MWh at other offshore wind projects awarded CfD contracts during 2014.
Scottish Power aims to start construction in 2017, with the first turbines installed by 2019 and the project fully operational during 2020.