German energy company RWE has recently taken full control of the Nordseecluster, a cluster of offshore wind farms in the German North Sea, with a total capacity of 1600MW. The cluster comprises four sites located north of the island of Juist and was previously co-developed with Canadian firm Northland Power. Northland Power has now sold its 49% shareholding in the cluster to RWE, making RWE the sole owner.
The transaction was agreed upon at a purchase price of approximately €35 million. The decision by Northland Power to sell its stake in the Nordseecluster was driven by the evaluation of the project in the current environment, which revealed higher expected costs that could not be fully offset by expected revenue. Mike Crawley, President and CEO of Northland Power, stated that the project no longer met the company's investment criteria.
Sven Utermöhlen, CEO of RWE Offshore Wind, expressed the company's ambition to strengthen its position as a global leader in offshore wind through the acquisition of the Nordseecluster. This cluster, being Germany's first gigawatt-scale offshore wind cluster, provides RWE with substantial size and scale. Once operational in 2027 and 2029, the Nordseecluster is projected to generate approximately six terawatt hours of green electricity per year, supporting Germany's decarbonization efforts.
Utermöhlen further added that RWE plans to participate in the upcoming large German offshore wind auctions this year, demonstrating their commitment to further expansion in the sector.
The development of the Nordseecluster will take place in two phases: Nordseecluster A and B. Nordseecluster A consists of two wind farms, N-3.8 and N-3.7, with a combined capacity of 660MW. These wind farms are currently in the permit application phase, and offshore works for Nordseecluster A are expected to commence in 2025, with commercial operations starting in early 2027.
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In the second phase, Nordseecluster B, two additional wind farms, N-3.6 and N-3.5, will be constructed, contributing an additional 900MW of capacity by 2029.
RWE intends to participate in the German government's offshore wind auctions this year for both sites of Nordseecluster B, exercising its step-in rights. This strategic move aligns with RWE's vision for continued growth in the offshore wind sector, solidifying its position as a key player in the global renewable energy market.
