RWE AG, Germany’s largest power producer, has found potential partners to invest in the construction of the $2 billion Galloper wind farm off the Suffolk coast of England.
Germany’s Siemens AG and U.K.’s Green Investment Bank are two of the three partners, two people familiar with the matter said, asking not to be identified as the discussions are private and may still fall apart. Both Siemens and Green Investment Bank declined to comment.
RWE, which is to build and operate the 336-megawatt facility, is seeking a final investment decision on partners to share the project costs by as early as October, Judith Erb, a spokeswoman for the Essen-based company, said Friday without identifying any of the hoped-for partners. RWE is hoping to reduce its stake in the 1.3 billion-pound project to 25 percent from 37.5 percent.
Because of its investment, Siemens will also likely supply the turbines for the facility, according to New York-based Bloomberg New Energy Finance analyst Daniel Shurey. “It would be a way to fill up the order books for their new blade facility currently under construction in Hull,” he said. The facility could power 200,000 to 300,000 households, BNEF analysts said.
RWE, forced to close its German nuclear reactors and grappling with power prices that have fallen every year since 2010, increasingly is seeking partners for capital-intensive offshore wind farms as it cuts back on wind and solar investments. In order to shore up its finances, RWE is reducing its annual capital expenditures for renewables to one-third of 2013’s 1 billion euros in the three years through 2017.
Reuters reported on RWE finding partners earlier Friday without naming them.