Siemens seals €3bn wind deal

The developer’s financial arm has taken a 20% stake in the Gemini power plant, which will be the largest-ever project-financed offshore wind farm once completed.

A consortium led by Canadian utility Northland Power and German developer Siemens today signed agreements to build, finance and operate the Netherlands’ Gemini offshore wind farm.

The deal will bring a sizeable windfall to Siemens, whose financial services unit owns a 20 percent share in the €3 billion project. The company has also won an order to supply 150 wind turbines of 4 megawatts (MW), representing a total revenue of €1.5 billion.

Other shareholders in the project include Northland Power, which holds a 70 percent stake in the asset, as well as Dutch developer Van Oord (10 percent), energy provider HVC (also 10 percent), a joint venture of 48 Dutch municipalities and six water regulatory authorities. Once completed, Gemini will be the largest-ever project-financed offshore wind farm.

The plant is to be located in the North Sea, 85 kilometres off the coast of Groningen. With an installed capacity of 600MW it will generate about 2.6 terawatt hours (TWh) of electricity per year, enough to supply one and half million people.

“With more than 20 parties involved, 70 percent of this budget will be provided on the basis of project financing,” Siemens said in a statement.
The project will help the Netherlands reach the targets mandated by the European Union’s Renewable Energy Directive, which states that the country must produce 17 percent of its power from renewable sources by 2020.

Today the Dutch market has an installed wind power capacity of 2.7 gigawatts (GW), comprising 2.45GW onshore. It plans to have 4.45 GW in operational offshore capacity by 2023.