RWE has inked a partnership agreement with Masdar to jointly develop the UK Dogger Bank South (DBS) offshore wind development projects. The completion of these landmark projects will continue to be led by both partners. The transaction is anticipated to close in the first quarter of 2024, subject to customary clearances. The new alliance was signed during a ceremony held during COP28 in Dubai.
RWE will retain control of project development, construction, and operation for the duration of the projects’ lifespan, with a 51 per cent share. Meanwhile, Masdar will purchase a 49 per cent share in the renewable energy projects. Masdar will jointly develop the project and compensate RWE for 49 per cent of the Devex expenditures thus far.
It is situated in shallow seas of the North Sea, more than 100 km away from England’s east coast. DBS comprises two 1.5 GW offshore wind farms. The two projects are projected to supply 3 million UK homes with sustainable power.
Furthermore, Masdar will become a part of DBS at a pivotal juncture in the projects’ development, as they near the conclusion of stakeholder and community consultations in anticipation of submitting Development Consent Orders, most likely in Q2 2024. The first 800 MW of electricity are expected to be operational in 2029, with the goal of fully commissioning the projects by late 2031. Work might begin in early 2025.
REGlobal’s Views: Masdar has been slowly expanding its presence in overseas markets and collaborating with various large firms to increase its renewable energy portfolio. It has in the recent months announced a series of projects in emerging renewable energy markets like Uzbekistan, Azerbaijan and Saudi Arabia. Simultaneously, the company has also set its sight on offshore wind opportunities in leading European markets like Germany, Poland and the UK. The company also signed a large agreement with Iberdrola for offshore wind deployment opportunities in Germany, the UK and the United States.
