Dong Energy and Siemens Energy make wind turbine handshake

Posted on 20 Jul 2012

Siemens Energy will supply and service 300 offshore wind turbines across the UK for Danish energy group Dong Energy.

Each wind turbine will produce six megawatt, giving a total capacity of 1,800 megawatt. The turbines will be installed at selected Dong Energy offshore wind farms in the UK between 2014 and 2017.

Siemens Energy are set to manufacture the wind turbines in Denmark but has promised that a proportion of the contract will be carried out in the UK.

However, there are no sites, Siemens or not, that could produce such a large scale contract for six megawatt turbines at present.

The six megawatt offshore wind turbine with a 154-metre rotor based on gearless direct drive technology is a recent development at Siemens Energy.

These new turbines belong to the new generation of large offshore wind turbines with a capacity of more than 5 megawatt, resulting in higher production per position.

Siemens are hopeful that it will be granted planning permission for a turbine-making site in Hull, but given the timeframes, it seems unlikely that the UK will reap much benefit from this deal.

A spokesperson for wind and marine energy association RenewableUK commented that short-term government policy is hindering renewable energy investment into the UK.

“The agreement will enable DONG Energy to install a significantly larger turbine from 2014 compared to the turbines, we know today. The agreement on the supply of the new turbines totalling 1,800 megawatt is an important step for the growing wind industry and will help make offshore wind more competitive,” says Carsten Krogsgaard Thomsen, CEO of Dong Energy.

The agreement comes as tensions build within The Coalition over the provision of funding for new wind power installations.

The Financial Times reported that Chancellor George Osborne is obstructing plans proposed by Liberal Democrat Energy Secretary Ed Davey for a new generation of turbines.

“Offshore wind energy has huge potential,” says Michael Suess, CEO of the Energy Sector at Siemens. “Offshore wind conditions are strong and stable, enabling an energy yield that can be about 40% higher than onshore.”

“The UK, Denmark and Germany are counting on the future of offshore wind energy,” he added. “We are working to further reduce the costs of this environmentally-friendly form of power generation.”

Under the framework agreement, Siemens Energy will design, manufacture, supply, install and service the 6 megawatt offshore wind turbines. Furthermore, the partners have agreed on product and performance warranties reflecting the size of the agreement.

The agreement commits Dong Energy to pay a cancellation fee in the event of the cancellation of projects comprised by the agreement.

Whether individual projects comprised by the agreement will be built and the total capacity under the framework agreement will be utilised depend on official approvals of the specific projects and Dong Energy reaching positive investment decisions for the projects.