German utility RWE announced its agreement to acquire three offshore wind projects off the English coast from Sweden's Vattenfall in a deal valued at £963 million ($1.2 billion). The portfolio, known as the UK Norfolk Offshore Wind Zone, comprises three projects, each with a capacity of 1.4 gigawatts, and the transaction is expected to conclude in the first quarter of 2024.
Vattenfall expressed confidence in the deal, stating, “Vattenfall believes the agreement with RWE is the best way forward both for the company and for the Norfolk projects.” The Swedish company had earlier paused the development of Norfolk Boreas, one of the wind farms within the Norfolk cluster, citing a discrepancy between rising costs and agreed electricity sales prices.
With this divestment, Vattenfall anticipates the reversal of impairments and provisions reported earlier this year. The decision to halt Norfolk Boreas was expected to impact earnings by 5.5 billion Swedish crowns ($543.95 million).
RWE confirmed its intention to resume the development of the Norfolk Boreas project. The other two projects, Norfolk Vanguard West and Norfolk Vanguard East, will participate in upcoming UK auction rounds to secure a contract for difference. RWE projects that all three Norfolk ventures will be commissioned within this decade, contributing to the expansion of its offshore wind portfolio.