Invenergy and BW Offshore have entered into a joint venture to develop up to 5.4 GW of offshore wind in Scotland. This is a part of the first ScotWind leasing round. The partnership will entail the development of both floating and fixed foundation offshore wind projects off the Northeast Coast of Scotland. The venture is expected to attract heavy investments into Scotland and the UK supply Chain. Both the companies seek to expand their portfolios of renewable energy in Scotland.
Invenergy develops, owns and operates large-scale renewables and clean energy facilities. At present, it has over 180 projects generating a more than 29 GW in capacity, spread across four continents. The investment outlay entails more than $43 billion in arranged financing for its portfolio of projects. Meanwhile, BW Offshore offers floating production solutions for the oil and gas industry and develops offshore solutions supporting the transition to a low carbon economy. Over the past four decades, BW Offshore has completed 40 projects worldwide.
In August 2021, Seagreen Wind Energy, a joint venture between TotalEnergies and SSE Renewables announced that it will provide corporate purchase power agreements (cPPAs) from the under-construction 1,075 MW offshore wind farm off the coast of Scotland. The Seagreen terms considerably decrease the normal cPPA period, giving purchasers an alternative to longer-term cPPAs. Seagreen’s cPPAs will have contract terms of five years, which the businesses claim will provide corporates with a balance of contract duration flexibility and supply certainty.
REGlobal Views: Scotland with its massive potential for developing offshore wind farms has become an attractive investment hotspot for large players. Further, its recent ScotWind offshore seabed leasing round has created a huge project pipeline for a decade and brought the country closer to achieving its net zero ambitions.
