RWE, a prominent energy company, has sealed a deal to purchase the Norfolk Offshore Wind Zone portfolio from Vattenfall AB, a Swedish utility. This acquisition involves three advanced-stage projects along England's east coast, named Norfolk Vanguard West, Norfolk Vanguard East, and Norfolk Boreas, each capable of generating 1.4 gigawatts (GW) of power.
The transaction, valued at GBP 963 million (approximately USD 1.2 billion/EUR 1.1 billion), primarily covers costs incurred thus far. RWE intends to revive development on one of the projects that had previously been halted, marking a significant step in their offshore wind endeavors.
Subject to approval from The Crown Estate and regulatory bodies, the acquisition is expected to conclude in the first quarter of 2024. These projects, having undergone 13 years of development, possess essential permissions, grid connections, and necessary supplies for construction, with two of them securing crucial components.
Despite a pause in the Norfolk Boreas project due to financial challenges and market vulnerabilities earlier in July, RWE plans to reignite the development following this acquisition.
RWE aims to compete for a Contract for Difference (CfD) in upcoming auction rounds for these projects. Their goal is to have all three wind farms operational by the end of the decade, contributing significantly to clean energy in the UK.
Tom Glover, RWE's UK Country Chair, expressed enthusiasm about the UK government's recent decisions on offshore wind auctions, emphasizing the importance of investing in clean energy to maximize potential while ensuring affordable prices for consumers and creating job opportunities.
This acquisition adds to RWE's substantial presence in the UK's energy landscape, with 10 operational offshore wind parks, one under construction, and nine others in various stages of development.
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