Germany’s EnBW Takes Final Investment Decision on 960 MW He Dreiht Offshore Wind Project

German energy giant EnBW has taken a final investment decision (FID) on the 960 MW He Dreiht offshore wind farm and said that major project will be developed without state subsidies as one of the world’s first zero-cent bids in an offshore auction.

The official statement held that the investment in the offshore wind project will be about €2.4 billion. EnBW said that the consortium for investment consists of Allianz Capital Partners, AIP and Norges Bank Investment Management acquiring 49.9% stake.

EnBW CEO Andreas Schell stated, “Long planning horizons and extensive preparatory work in the offshore wind industry require a high degree of foresight, expertise and readiness to make decisions and invest. This is another big step towards a carbon-free energy future.”

According to EnBW CFO Thomas Kusterer, in He Dreiht, the company is building one of Germany’s largest offshore wind farms. He said that a  combination of factors made the zero-cent bid possible including the installation of the latest wind turbine technology, synergies with existing sites and long-term power purchase agreements with industrial customers, which have a stabilizing effect on wind farm revenues.

This subsidy-free offshore wind farm is currently one of the largest energy transition projects in Europe. The investment cost for He Dreiht is around €2.4 billion. It is expected to be operational by the end of 2025. He Dreiht will then generate green electricity for the equivalent of 1.1 million households.

EnBW has so far signed several long-term PPAs for He Dreiht with companies such as Fraport, Evonik, Salzgitter and Bosch, covering a total volume of 335 MW. Talks with other companies are underway.

To finance this major project, EnBW has also secured an additional €600 million in long-term funding from the European Investment Bank.

The 960 MW EnBW Offshore Wind Farm

the He Dreiht wind farm is located 85 kilometers northwest of Borkum and upon completion, EnBW will be responsible for technical and commercial management as well as maintenance and repair.

The existing offshore wind farms of EnBW – Hohe See and Albatros – are located nearby. He Dreiht will benefit from this proximity and from the service hub already established in the coastal town of Emden. EnBW said that the plan is for the installation of 64 latest-generation Vestas wind turbines.