It was an attractive product in the form of licenses for 8 GW of offshore wind, which the British authority The Crown Estate had in tender.
This is also reflected in the price, which was almost 7.5 billion kroner (879 million pounds) for six licenses for projects with an estimated effect of 8 GW. It was revealed together with the winners of the tender on Monday. The money will go to the British Treasury.
- This tender provides a major boost to the UK's green economy, says Dan Labbad, CEO of The Crown Estate.
The largest buyers were the German energy company RWE and a consortium consisting of the British BP and the German EnBW. The parties secured rights to develop offshore projects for 3 GW each. For BP, the projects are the first with offshore wind in the UK.
- The successful bid in this round marks BP's entry into one of the world's best markets for offshore wind. This is an important development in BP's transformation, says BP's CEO, Bernard Looney.
In addition, a joint venture between Green Investment Group and Total accounts for 1.5 GW.
Meanwhile, a Spanish joint venture called Offshore Wind Limited consisting of Cobra Instalaciones y Servicios, S.A. and Flotation Energy plc has secured licenses for 480 MW.
The Spanish consortium is planning a floating offshore wind farm off the coast of Scotland, which with its 480 MW will be the world's largest floating offshore wind farm when completed.
Risk too high for Ørsted
It is worth noting that Ørsted is not accounting for any of the new licenses. According to Ørsted's Managing Director for Offshore, Martin Neubert, the risk was too high, as prices were driven up by a too low supply of licenses.
- The UK's tender shows that the UK is an attractive market, and it was clear that demand in this tender round clearly exceeded supply, he tells renewz.biz.
The tender in the last round in 2010 was also significantly higher. Here, licenses for a total of 32 GW of offshore wind were offered. This means that the tender in the just-completed round was four times lower than in 2010.
The UK currently has just over 10 GW of offshore wind. The country has a goal of reaching 40 GW by 2030.
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