In what is believed to be Europe’s largest wind turbine contract for a single project, Scottish Power has agreed a deal with Siemens, which will more than 100 wind turbines supplied for the East Anglia-1 offshore windfarm.
The £800 million contract, including a 5-year service agreement, will be worth up to one-third of the overall £2.5 billion project investment.
The 75-metre long turbine blades will be fabricated at Siemens’ new factory in Hull, and £5 million is set to be invested in Great Yarmouth Harbour, which will act as the pre-assembly port prior to installation of the turbines.
East Anglia-1 will comprise 102 turbines, each with a capacity of 7-MW which will power more than 500,000 homes every year. With the CfD milestones confirmed by the Low Carbon Contracts Company, the project will be delivered at a price of £119/MWh – a cost reduction of 20% compared to other offshore wind farms that have been built in the UK.
The first wind turbines are scheduled to be installed in the summer of 2019, with the start of commercial operation scheduled for 2020.
Keith Anderson, Chief Executive, Scottish Power, said: “We have concluded Europe’s largest project-specific wind turbine agreement just a month after taking our final investment decision, and we have scaled the final hurdle by satisfying our CfD conditions with the Low Carbon Contracts Company.
“It is now full steam ahead for East Anglia-1, with ground set to be broken early next year. This is the first of up to four projects we would like to build in the southern North Sea, and we hope that our plans will stimulate jobs and investment for the UK and across the region for decades to come.”
Michael Hannibal, Chief Executive, Siemens Wind Power and Renewables Division, added: “. This deal represents the largest single order ever for our direct-drive, 7-megawatt wind turbine. The decision to go with our wind turbines underscores the contribution made by these units to reducing the costs of offshore wind power.”
Meanwhile, Iberdrola – the Spanish conglomerate which owns Scottish Power – recorded a net profit of €868.7 million in the first quarter of 2016, a 3.3% increase on the same period of the previous year.
Net operating profit (EBITDA) stood at €2.08 billion in the first three months, down by 6%.