innogy acquires Statkraft’s 50 per cent share in Triton Knoll offshore wind project

  • innogy becomes sole owner of Triton Knoll project with a planned installed capacity of 860 megawatts
  • Future ownership structure to be reviewed further
  • Final investment decision planned for mid-2018

 

innogy and Statkraft have completed an agreement under which innogy has acquired Statkraft’s 50 per cent share in the offshore wind project Triton Knoll.

 

With the acquisition of Statkraft’s share, innogy has become its sole owner. Both sides have agreed to maintain confidentiality regarding the purchase price.

Triton Knoll is an offshore wind project with a planned installed capacity of 860 megawatts. Managed by innogy, Triton Knoll has been successfully developed through a joint venture by innogy and Statkraft. On 11 September 2017, the project was awarded a Contract for Difference (CfD) by the UK Department for Business, Energy & Industrial Strategy (BEIS) in the latest auction round to support renewable energy projects.

Hans Bünting, COO Renewables of innogy SE, says: “With full control over Triton Knoll, we will now develop the project further to final investment decision at our own discretion. In due course, we will also review all options regarding the ownership structure of Triton Knoll to maximise value for our company and our shareholders.”

Triton Knoll is one of the most cost-effective and most competitive offshore wind projects of the latest auction in the UK. The strike price awarded is £ 74.75 per megawatt over 15 years (the strike price is in 2012 prices). The wind farm will be able to supply the equivalent of an expected minimum of 800,000 UK households p.a. with renewable electricity. The planned investment volume amounts to approximately £2 billion (which corresponds to roughly €2.2 billion at the current exchange rate).

The planned wind farm, located 32 kilometres off the coast of Lincolnshire in the east of England, has already been fully consented. The location offers good, proven wind conditions and moderate average water depths of 18 metres. The final investment decision for Triton Knoll is expected to be made in mid-2018. Until then the financing process will be finalized and contracting agreements completed with the project’s supply chain partners. So far, preferred suppliers for turbines, foundations, substations and offshore cables have been unveiled: MHI Vestas Offshore Wind shall provide up to 90 of its V164-9.5 MW turbines. Furthermore, it is planned to install the turbines and substations on monopile foundations manufactured by a joint venture of Sif Netherlands B.V. and Smulders Projects Belgium N.V. All offshore foundations and two offshore substations are to be installed by MPI Offshore. Onshore and offshore substations are to be supplied by Siemens Transmission and Distribution Ltd, who will also install the onshore substation. A consortium of NKT and VBMS shall supply the offshore cables.

In 2018, onshore works are scheduled to begin to provide the grid connection. Offshore construction is expected to start in 2020. According to current planning, commissioning of Triton Knoll is expected in 2021.

 

Please direct all media enquiries to:

innogy SE, Sarah Knauber

Press Spokeswoman, Renewables Segment

T +49 201 1214861
M +49 162 2544489


Legal disclaimer

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialisation of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

 

About innogy SE

innogy SE is Germany’s leading energy company, with revenue of around €44 billion (2016), more than 40,000 employees and activities in 16 countries across Europe. With its three business segments Grid & Infrastructure, Retail and Renewables, innogy addresses the requirements of a modern, decarbonised, decentralised and digital energy world. Its activities focus on its
23 million customers, and on offering them innovative and sustainable products and services which enable them to use energy more efficiently and improve their quality of life. The key markets are Germany, the United Kingdom, the Netherlands and Belgium, as well as several countries in Central Eastern and South Eastern Europe, especially the Czech Republic, Hungary and Poland. In renewable power generation, the company is also active in other regions, e.g. Spain, Italy and the MENA region (Middle East, North Africa), with a total capacity of 3.7 gigawatts. As a leader of innovation in future-oriented fields like eMobility, we are represented in the international hot-spots of the technology industry such as Silicon Valley, Tel Aviv, London and Berlin. We combine the extensive expertise of our energy technicians and engineers with digital technology partners, from start-ups to major corporates. With planned capital investments of around €6.5- €7.0 billion (2017-2019), we are building the power market of the future and driving forward the transformation of the energy market.

Renewables
With an installed capacity of more than 900 megawatts in offshore wind and with over 1900 megawatts in onshore wind, innogy is one of the major operators in Europe. We plan, build and operate plants to generate power and extract energy from renewable sources. Our aim is to take the expansion of renewables in Europe further in the short term, both on our own and working with partners. We believe that working together in this way is the key to making the energy transition a success. Currently, we are particularly strongly represented in our home market, Germany, followed by the United Kingdom, Spain, the Netherlands and Poland. At the moment we are focusing on continuing to expand our activities in onshore and offshore wind power. We are also looking at entering new markets and technologies, such as large-scale photovoltaic plants.

Further information: www.innogy.com

Support of new renewable energy projects in the UK based on the contract for difference principle

Since 1 April 2015, new renewable energy plant in the UK is supported on the basis of a mechanism known as “contract for difference” (CfD). In the current auction round from 14 to 18 August 2017 qualified bidders were able to apply for support for their projects. The CfD mechanism envisages green electricity projects receiving support over 15 years, during which time they receive a guaranteed remuneration for the electricity they generate. The electricity is sold on the wholesale market. If the price achieved there is below the remuneration awarded in the CfD auction, the difference is reimbursed to the company. If the price achieved is higher, the company has to make a corresponding payment. The companies that are successful in the auction receive the highest price awarded in the auction per generated megawatt-hour for a period of 15 years – independent of the price they tendered in the auction. The total annual budget used to support a specific technology is limited. That is why only the most cost-effective projects are successful.

 

Post Author: Mark Fleming