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EDF Picks Siemens Gamesa, Saipem for $2.3 Billion U.K. Wind Farm

EDF Picks Siemens Gamesa, Saipem for $2.3 Billion U.K. Wind Farm

 

Electricite de France SA selected companies to build a 1.8 billion-pound ($2.3 billion) wind farm off the east coast of Scotland, and sold half of the project to an Irish utility.

 

Siemens Gamesa Renewable Energy SA, General Electric Co., Saipem SpA and Prysmian SpA will be the main suppliers, EDF said Thursday. The divestment of a 50% stake to Ireland’s Electricity Supply Board will help the French company meet asset-sale targets as it struggles to cover day-to-day maintenance costs and investments in new nuclear and renewable facilities.

 

Spain’s Siemens Gamesa will supply the 54 windmills and GE will provide two electrical substations for the Neart na Gaoithe farm, EDF said in a statement. The 450-megawatt project is due to be fully commissioned in 2023 and will generate enough electricity to meet 4% of Scotland’s demand.

Prysmian said it won a contract to supply and lay cables, while Saipem got an order for turbine foundations. Deme Offshore and Fred Olsen Windcarrier will also help install the wind farm.

The project has a 15-year agreement with the government based on a so-called contract for difference, set at 114.39 pounds a megawatt-hour in 2012 pound sterling. It also has grid-connection deals in place.

EDF bought the project from Mainstream Renewable Power Ltd. last year for an undisclosed amount. It also didn’t give financial terms for the sale to the ESB. Offshore wind developers typically share the costs and risks associated with the development of capital-intensive facilities at sea.

EDF’s divestments this year include its 25% stake in Swiss power producer Alpiq Holding AG for 489 million francs ($489.5 million). It also agreed in July to sell a package of oil and gas assets for as much as $850 million. This month, the utility said it’s exercising its option to sell a 49.99% stake in three U.S. nuclear plants to Exelon Corp., which owns the remaining share.

Source: BNN Bloomberg

Published: 28-11-2019
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