EnBW has taken the final investment decision (FID) on its 960MW He Dreiht offshore wind project in the German North Sea, clearing the way for construction to begin.
The developer has also sold a 49.9% minority stake in the project to a consortium consisting of Allianz Capital Partners on behalf of Allianz insurance companies, AIP and Norges Bank.
The consortium’s involvement in bidding for the stake was first reported by reNEWS.biz.
He Dreiht, which will feature Vestas 15MW turbines (pictured), will be able to deliver what will be one of Germany’s largest zero cent, subsidy-free offshore wind farms.
The investment cost for is around €2.4bn. It is expected to be operational by the end of 2025.
“The final investment decision for the construction of our He Dreiht offshore wind farm is an important milestone in accelerating the energy transition.
“Long planning horizons and extensive preparatory work in the offshore wind industry require a high degree of foresight, expertise and readiness to make decisions and invest.
“This is another big step towards a carbon-free energy future,” said EnBW CEO Andreas Schell.
EnBW CFO Thomas Kusterer said: “In He Dreiht, we are building one of Germany’s largest offshore wind farms. We succeeded in the first German offshore tender in 2017 with a zero-cent bid and made an important contribution to the further development of the offshore market.”
Kusterer added that yesterday’s decision is the reward for more than six years of outstanding teamwork.
EnBW has so far signed several long-term power purchase agreements (PPAs) for He Dreiht with well-known companies such as Fraport, Evonik, Salzgitter and Bosch, covering a total volume of 335MW.
Talks with other companies are underway.
In the expansion of renewables, PPAs are an important means of underpinning and financing unsubsidised projects in the market.
By entering into PPAs, companies and municipal utilities gain access to green power to meet their own climate targets and serve their customers.
To finance this major project, EnBW has secured an additional €600m in long-term funding from the European Investment Bank, one of the world’s largest financiers of climate and environmental projects.
Upon completion, EnBW will be responsible for technical and commercial management as well as maintenance and repair.