Iberdrola chooses London for offshore wind

At the event the Spanish utility company made positive sounds about its assessment of prospects for the UK energy sector, including offshore wind, stating the UK was central to the group’s plans. The office was opened by Edward Davey MP, Secretary of State at the Department of Energy and Climate Change.

Industry observers will be watching closely as a number of high profile companies involved in offshore wind set up shop in the UK, sending signals of increasing confidence that the country’s renewable energy targets, particularly for Round 3, are achievable and worth the often significant investment, particularly in the current global financial situation. Such developments are considered important in helping reduce the cost of offshore wind energy. Iberdrola is planning £10bn of investment in the UK in the coming years.

Iberdrola is Spain’s number one energy group and SPR is responsible for progressing their offshore wind and marine energy projects throughout the world, managing the development, construction and operation of all current and potential projects. Iberdrola’s UK assets currently stand at £20bn with a workforce of around 8,000, both figures representing around 25% of the group’s activities.

In a 50/50 partnership with DONG Energy, SPR is developing the 389MW West of Duddon windfarm in the Irish Sea, due to be commissioned in 2014, with two other UK offshore windfarms also currently at the development stage. The company has secured exclusive rights to develop the Argyll Array site, west of the island of Tiree, as part of The Crown Estate’s Scottish Territorial Waters tendering round. The project has been delayed while issues surrounding any possible impact on basking sharks and great northern diver sea birds are addressed. Consent application is planned for 2014 with completion expected in 2020.

On a larger scale is SPR’s joint Round 3 venture with Vattenfall Wind Power of Sweden, to develop the East Anglia Offshore Windfarm with a potential capacity of up to 7,200MW. Construction is expected to start around 2015. Iberdrola is also investing £1.3bn in a 418km high voltage undersea cable linking south west Scotland with north Wales. SPR is also investigating the potential for two offshore windfarms in the Baltic Sea.

At the opening, Ignacio Galan, chairman and CEO of Iberdrola praised the UK for leading the way in liberalising their energy sector saying, “Decisions now being made will affect our energy sector for many years to come.” He added that this represented major challenges “but also an opportunity for ScottishPower as an investor, employer and creator of economic value for the UK.”

By Peter Barker