EDP, ENGIE to Create Offshore Wind Titan
- May 27, 2019
EDP and ENGIE have signed a Memorandum of Understanding to create a co-controlled equally shared joint venture in fixed and floating offshore wind. The execution of the project is subject to the respective social, corporate, legal, regulatory and contractual approval processes, but the group aims to be operational by the end of the year.
The partnership will primarily target markets in Europe, the U.S. and selected geographies in Asia, which are also the regions where most of the growth is expected to come from. In addition, they aim to be self-financed, as well as respect the investment criteria of both companies for upcoming projects.
Expanding offshore horizons
The new entity will be the exclusive vehicle of investment of EDP—through its subsidiary EDP Renewables, and ENGIE for offshore wind opportunities worldwide. Under the terms of the MoU, the two companies will combine their offshore wind assets and project pipeline in the newly created joint venture. Specifically, the new entity will handle a portfolio comprising 1.5 gigawatts under construction at Moray East (950MW), Wind Float Atlantic (25MW) and SeaMade (487MW).
Another 4 gigawatts will be under development at Moray West (800-950MW), Tréport & Noirmoutier (992MW), Leucate (24MW), Mayflower (1500 MW), B&C Wind (400MW), California (100-150MW). By 2025, their target is to reach five to seven gigawatts of projects in operation or construction, and five to 10 gigawatts under advanced development.
This alliance follows EDPR and ENGIE’s six-year cooperation as consortium partners in the Dieppe Le Tréport and Yeu Noirmoutier fixed offshore wind projects in France and Moray East and Moray West in the U.K. The two companies are also partners in two floating offshore wind farms in France and Portugal and in the Dunkerque offshore wind tender currently ongoing in France.