British winds strengthen Vattenfall

From just over 1.5 TWh to 49 TWh by 2030 - that is no modest figure for Vattenfall’s investment plans when it comes to wind power. 49 TWh corresponds to the electricity needs of 10 million households.

The acquisitions that Vattenfall carried out in the UK in autumn 2008 signify an important step toward achieving this goal. The acquisitions included the wind power companies AMEC Wind Ltd, Eclipse Energy UK Plc, and Thanet Offshore Wind Ltd, a construction-ready offshore wind farm which upon completion in 2010 will be the country’s largest. In addition, Vattenfall signed a co-operation agreement with ScottishPower Renewables, a subsidiary of Iberdrola Renovables, the world’s largest wind power operator.

“If all of these projects come to fruition, we will be able to generate approximately 15 TWh of wind-powered electricity in the UK,” says Anders Dahl, head of wind power operations at Vattenfall.

Why the UK?

“It is one of the key markets where we want to develop as a part of
our ambition to be the fastest growing wind power company in northern Europe. Added to that, the investment climate in the UK is favourable for foreign investors and for support systems for renewable energy.”

Plus, the winds blow hard and steady along the coast, which anyone who has ever visited Britain can testify to.

The principle for Vattenfall’s investments in the UK is similar to the approach taken for Lillgrund, Vattenfall’s largest offshore wind farm in the Oresund Strait between Sweden and Denmark. As was the case for Lillgrund, for the Thanet Offshore wind power project Vattenfall has bought a portfolio of ready permits and far-advanced project plans along with existing suppliers tied to the project, thereby creating a local organisation for construction of the wind farm.

“Expertise is crucial in the UK with respect to administration, permits and environmental reviews,” says Dahl. “What we can add as owner from the central level is our technological expertise.”

In addition to the planned wind farms, the collaboration with
ScottishPower Renewables will result in projects totalling 6,000 MW along Britain’s coast, of which Vattenfall will account for half.

“Vattenfall and ScottishPower Renewables will be a formidable constellation with considerable financial muscle and extensive experience in wind power. It is important to enter into strategic alliances of this kind when competing for licences,” says Dahl.

Wind power is growing in leaps and bounds, and the industry has periodically been suffering from a shortage of capacity.

“But more suppliers are entering the market, and we are encouraging more players to get positioned. As part of our effort to secure supply for our Nordic projects, we have signed a framework agreement with Siemens and Vestas for 270 MW of capacity,” says Dahl. “This corresponds to roughly a hundred wind power turbines, depending on the size.”

Apart from its investments in the UK, Vattenfall is pursuing several other wind power projects, including a partnership with forest company Sveaskog which may result in the erection of more than 500 wind power turbines throughout Sweden.

“To be sure, we are currently in the midst of a very exciting period of development right now,” Dahl concludes.