The three projects have a total capacity of up to 900 MW and are located in the German North Sea approx. 30 km northwest of the island of Norderney.
The purchase price for the three projects consists of an upfront payment of €57 million and additional deferred payments that are subject to the achievement of certain milestones such as an investment decision to construct the wind farms.
The additional payments could amount to as much as €100 million.
Gode Wind 1 and 2 both have a permit from German authorities that allows for the construction and operation of the projects. Certain changes to the permits are required though to utilise the total capacity in the projects. Gode Wind 1 and 2 have unconditional grid connection confirmation from the grid provider TenneT for a total of 584 MW.
Gode Wind 3 has applied for a permit to construct and operate, which is expected to be granted in 2013. Completion of the Gode Wind 3 transaction is conditional upon the relevant permits being obtained by the end of January 2014.
Dong Energy said in a written statement that the acquisition of the Gode Wind 1, 2, and 3 projects is a significant step in its effort to gain a stronger position in the growing German offshore wind sector.
“Offshore wind is a central part of Dong Energy’s overall strategy and the acquisition of the three Gode Wind projects strengthens our already ambitious development pipeline in German waters,” said Carsten Krogsgaard Thomsen, the company's acting CEO.
“The Gode Wind projects in Germany are very interesting for us as we, if positive investment decision is taken, expect that construction of parts of the projects could begin by 2015 due to the available grid connection confirmations. This way, the projects have a good fit with Dong Energy’s project pipeline, ensuring that our installation sequence of building large-scale projects successively could work smoothly and help bring down the cost of energy from offshore wind power,” said Carsten Krogsgaard Thomsen.
No investment decision has been made by Dong Energy with respect to the three projects.
Dong Energy already has offshore wind projects under construction on Lincs, London Array and West of Duddon Sands in the UK, Borkum Riffgrund 1 in Germany and Anholt offshore wind farm in Denmark. These projects total approx. 2,000 MW.
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