Iberdrola claims primary rights for 300 MW German Baltic Sea wind project

Land O-1.3 was provisionally awarded to RWE by tender

Iberdrola invests 800 million euros without subsidies

Expansion of the Iberdrola Baltic Windhub with 1.1 GW by 2026

Iberdrola has exercised its right of entry for the 300 MW offshore wind anchor Windanker in the German Baltic Sea, which has been provisionally awarded to RWE, announced the Spanish energy supplier on November 5th.

Iberdrola will invest around 800 million euros (923 million US dollars) to bring the project online by 2026 and to help create a Baltic Wind hub with 1.1 GW capacity.

“The implementation of wind anchors on a zero-bid basis presents us with challenges due to the special conditions in the Baltic Sea,” said Iberdrola Renovables Germany boss Iris Stempfle.

Iberdrola already operates the 350 MW Wikinger and is developing the 476 MW Baltic Eagle for launch in the German Baltic Sea in 2024, investing around 2.7 billion euros in the two projects that are still being funded.

German electricity term prices reached record highs in October due to the rally in gas, coal and CO2 prices.

Germany’s plans to phase out nuclear energy and coal are intended to reduce supply and drive up the separation prices for renewable energies.

The prices for offshore wind energy reached a record value of 122.50 euros / MWh in September, as data from the German EEG system showed.

S&P Global Platts Analytics is forecasting German base load electricity for 2026 at EUR 58.30 / MWh according to its latest five-year forecast, released in August before gas prices doubled amid an unprecedented rally.

The new five-year gas outlook published by Platts Analytics on November 4th sees the annual TTF gas price dropping below EUR 20 / MWh again in 2026.

Projects without subsidies benefit from guarantees of origin or GOs.

On November 4th, Platts rated the wind turbines of the EU 2025 at 1.60 EUR / MWh.

Pull loose

The regulatory authority BNetzA initially awarded the O-1.3 property to RWE after various zero bids had been submitted as part of the tender from September 2021.

An Iberdrola subsidiary holds the primary rights that pre-developed the site before the site allocation was changed from feed-in tariffs to tenders.

According to the Iberdrola statement, the BNetzA confirmed Iberdrola’s right of entry for O-1.3 on November 4th.

Iberdrola said that thanks to its experience in the Baltic Sea, it can efficiently operate wind anchors with 15 MW turbines.

Synergies from the simultaneous construction with the East Anglia Hub in Great Britain and planned projects in the Baltic Sea will further increase profitability.

“Until offshore wind energy has been fully integrated into the market, we consider an intelligent transition market design to be necessary,” says Stempfle from Iberdrola.

The majority of the estimated electricity production of 1.3 TWh at a conservative load factor of 50% is expected to be distributed over long-term electricity purchase agreements in the German market, said Iberdrola.

“We need more offshore wind farms so that the energy turnaround succeeds,” said Mecklenburg-Western Pomerania’s Prime Minister Manuela Schwesig, welcoming the investment decision.

RWE said in a September 9 statement that it plans to build two offshore wind farms in Germany, with a final decision pending by November.

RWE and its partner Northland Power hold the primary rights for a further location (433 MW N-3.8) in the North Sea, which was initially awarded to EDF by lot.

The BNetzA confirmed on its website that the primary rights to N 3.8 were exercised when the land was awarded to Nordsee Two GmbH, a joint venture between RWE and Northland Power.

GERMAN OFFSHORE WINNING NOTIFICATION

Source: BNetzA, developer