The group will continue to be the majority shareholder, with 60% of this offshore wind farm, which will be one of the largest in the world when it enters into operation.
The
company is reaffirming its ambition to lead the offshore wind energy
market with a pipeline set to deliver over 10,000 MW in the coming
years.
When the wind farm is operational in 2020, the transaction
will see Iberdrola receive £1,63 billion, which will be used to fund the
organic growth plans referred to in the 2018-2022 Strategic Plan.
Iberdrola
has entered into an agreement with Green Investment Group (GIG), part
of the Macquarie group, to sell a 40% share in East Anglia One (EAO),
the offshore wind project that the company is building in the British
North Sea. This will bring a new shareholder into the project, of which
Iberdrola will maintain a 60% majority shareholding.
According to
transaction terms and conditions the entire value of EAO amounts to
£4.1 billion and when the wind farm is operational in 2020, Iberdrola
will receive £1.63 billion (about €1.75 billion [1]) for the 40% stake.
These funds will be allocated to the Group’s organic growth plans
referred to in the 2018-2022 Strategic Plan.
The completion of the transaction is subject to the standard authorisation from the Crown Estate.
EAO
is the largest renewable project ever undertaken by a Spanish company.
Once commissioned in 2020, it will be one of the world’s largest wind
farms, with an installed capacity of 714 MW, supplying 600,000 British
homes with clean energy.
Iberdrola, steadfast commitment to offshore wind power
Over
the next few years offshore wind energy will be an investment focus for
Iberdrola, developing a project portfolio of over 10,000 MW. This
growth focuses on three main areas: the North Sea, the Baltic Sea and
the United States.
Clean power generated by offshore wind farms
is a cornerstone of the company’s strategy, which expects to allocate
39% of the €34 billion earmarked for the 2018-2022 period to renewable
energy: €13.26 billion.
The group is currently operating two
offshore wind farms: West of Duddon Sands, which went into service in
the North Sea in 2014, and Wikinger, in the German waters of the Baltic
Sea, which has been operational since December 2017.
Iberdrola is
in the process of building the biggest offshore wind farm in the United
States: Vineyard Wind. Just off the coast of Massachusetts, it will
produce 800 MW of power to cover the energy needs of a million homes.
In
Germany, in April, the company was awarded contracts to build two new
plants in the Baltic Sea, which will produce a total of 486 MW: Baltic
Eagle and Wikinger Süd.
In addition to these new plants, the Sant
Brieuc wind farm, which is located in French waters, is scheduled to be
commissioned in 2022. It will have 496 MW of installed power and will
be located just off the coast of French Brittany, 20 kilometres
offshore.
Once these projects are operating in late 2022, the
company will have installed 2,000 MW of offshore wind power, after which
it will add a further 1,000 MW.
Iberdrola is committed to
growing its renewable energy business. Globally countries have ambitious
objectives for new wind generation facilities. The UK is seeking to
develop 30,000 MW of offshore wind, and the United States is developing
25,000 MW.
