Masdar, Abu Dhabi’s renewable energy company, has acquired a share in what is set to be the world’s fourth biggest offshore wind farm just off the UK’s Norfolk shore.
Masdar invested £525 million (Dh3.16 billion) for a 35% share in the £1.5bn Dudgeon project, according to the UK government.
The structure of the wind farm, which is set to have a capacity of 402 megawatts, enough to power about 410,000 homes, is planned to be finished in late 2017.
Masdar will associate with the publicly owned Norwegian energy company Statoil, which keeps a 35% share in the project and will run the farm. The remainder 30% is kept by Statkraft, Norway’s publicly owned electricity company. In July, Siemens was given a £516m agreement for the construction and maintenance of the Dudgeon wind turbines. Masdar has gained significant experience in offshore wind, and is now looking to entrust advance to the sector.
The UK proffers experienced companies and good escalation possibilities, and is a natural market option for investments in offshore wind. Masdar has beforehand invested in the UK-based London Array, which has a capacity of 630MW and is the world’s biggest offshore power plant. The typical US nuclear power plant has a capacity of 1,347MW.
Masdar also runs a 100MW concentrated solar power plant in the UAE and the 117MW Tafila wind farm in Jordan. Offshore wind is one of the most costly types of energy for each megawatt-hour.
Higher expenses are the effect of the requirement to utilize more challenging, more expensive resources, the luxurious procedure of anchoring power plants in the seafloor, cost-intensive installation and logistics for the power plant components, and high maintenance expenses, according to a report.
But offshore wind investments are likely to become more economical in the future, as firms gain expertise in offshore plant construction, the report said.
The UK is home to nine of the 25 biggest offshore wind farms, with plans to improve 4.5 gigawatts of energy to the network. The state surpassed Denmark in 2008 as the world’s largest producer of wind power, which accounts for around 9% of the UK’s energy requirements.
It was stated that Masdar’s investment is a robust endorsement of the UK as the best place in the world to invest in offshore wind.