Inspenet, August 1, 2023.
Millionaire loss for Vattenfall?
Vattenfall, the Swedish energy company, has decided to put its Norfolk Boreas offshore wind project in the UK on hold. This project, which had a capacity of 1.4 GW, had obtained a 15-year Contract for Difference (CfD) in the UK last year, priced at £37.35/MWh.
However, a series of challenges, chief among them supply chain constraints, cost inflation, and an increasing cost of capital, have rendered the project no longer economically viable . As a result, Vattenfall has reported a loss of approximately US$530 million.
On the other hand, both SSE and Vattenfall have reported a decline in renewable energy generation. In its first quarter report, SSE noted that renewable energy production was down 29% compared to its plans, due to less favorable weather conditions.
Vattenfall also announced that it will review the best strategy for the entire Norfolk region, which encompasses the Vanguard East and Vanguard West projects.
Together, these three projects were expected to generate around 4.2 GW of electricity.
The UK is aiming to increase offshore wind capacity to 50 GW, from the current roughly 14 GW, as part of its efforts to meet its climate targets and improve energy security.
Other acquisitions
Ørsted, the Danish energy company, has decided to sell its remaining 25% stake in the London Array offshore wind farm in the UK. The sale will go to funds managed by Schroders Greencoat for a total of approximately $920 million.
Likewise in Brazil, Equinor has reached an agreement to acquire Rio Energy, a leading company in terrestrial renewable energy. Following the acquisition, Equinor will obtain a number of assets, including a producing onshore wind farm, a pre-construction solar PV portfolio, and a number of wind and solar power projects.
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