RWE Inks £963 mn Deal to Buy Vattenfall’s Norfolk Offshore Wind Projects in UK

By Editor


RWE, a prominent player in the renewable energy sector, announced the acquisition of the UK Norfolk Offshore Wind Zone portfolio from Vattenfall – at an enterprise value of £963 million.

This acquisition encompasses three offshore wind development projects situated off the eastern shores of England – namely, Norfolk Vanguard West, Norfolk Vanguard East, and Norfolk Boreas.

The trio of projects, each projected to generate 1.4 gigawatts (GW) of power, is strategically positioned within an area recognized as one of the world’s prime zones for offshore wind deployment. After over a decade of meticulous development, these projects have successfully obtained seabed rights, crucial grid connections, Development Consent Orders, and all requisite permits.

Of the three, Norfolk Vanguard West and Norfolk Vanguard East stand as the most progressed, having secured procurement for the majority of vital components. The imminent milestone for these projects involves securing a Contract for Difference (CfD) in the forthcoming auction rounds. Meanwhile, RWE is set to reignite the development of the previously paused Norfolk Boreas project. The completion and activation of all three projects are anticipated within this decade.

“With the acquisition of the Norfolk Offshore Wind Zone portfolio, we are taking over three well-advanced offshore wind projects from Vattenfall,” Sven Utermöhlen, CEO of RWE Offshore Wind, said

This development aligns with RWE’s global investment plans outlined during its Capital Markets Day in 2023. The company disclosed intentions to funnel €55 billion into global investments between 2024 and 2030, propelling its green portfolio to surpass 65 GW by 2030. The Norfolk portfolio acquisition serves as a crucial component of RWE’s Growing Green investment and growth program, augmenting its project pipeline with three highly promising ventures.

The agreed purchase price, set at an enterprise value of £963 million, largely accounts for the expenses incurred in the projects’ development to date. The transaction’s finalization hinges upon approvals from The Crown Estate and regulatory bodies, expected in the first quarter of 2024.

RWE’s presence in the UK’s renewable landscape is formidable, operating 10 offshore wind farms and developing nine additional projects, projecting a combined potential installed capacity of about 9.8 GW.

RWE is constructing the 1.4 GW Sofia offshore wind project in the North Sea off the UK’s east coast. Globally, the company aims to triple its offshore wind capacity from 3.3 GW to 10 GW by 2030, leveraging its extensive two-decade-long track record in this sector.

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