This is in line with the British government’s efforts to incentivise low-carbon power production.
In a move that would enthuse green energy backers, Siemens has won a five year contract worth $1.2 billion (833 million pounds) to build and service wind turbines for Scottish Power’s East Anglia ONE project off the eastern coast of England.
As per the terms of the agreement, Siemens will have to build and service 102 turbines with an individual capacity of 7 megawatts. As per Scottish Power, this is the single largest contract in Europe for building and servicing offshore wind turbines. Incidentally, Scottish Power is owned by Spain’s Iberdrola.
Siemens will manufacture the turbine’s blade in its Hull factory, a 160 million pound compound which it built to service Britain’s huge demand for offshore wind equipment, in northern England. The Hull factory is scheduled to be opened sometime in 2017.
By 2020, Britain, which houses the world’s largest market for offshore wind projects, plans to have 10 gigawatts of offshore wind capacity in production.
Scottish Power plans to start building the 715-megawatt East Anglia ONE wind farm off the coast of Norfolk in 2017, with the turbines set for installation by 2019 and the wind farm operational by 2020.
After completion, the East Anglia ONE project is expected to power more than 500,000 homes.
Scottish Power has secured a purchase price for the electricity generated at its wind farms for 119 pounds/megawatt hour (MWh). The deal falls within the government’s contracts-for-difference scheme, which is to incentivize low-carbon power production.
Of note is the fact that, currently electricity prices in Britain trade at around 37 pounds/MWh.