* Auction was "highly contested race" - Bernstein
* RWE says price it was awarded was lowest in auction
* BP teams up with Germany's EnBW
(Adds source on pricing, quotes from BP's low carbon chief,
background on other big offshore wind markets)
By Susanna Twidale
LONDON, Feb 8 (Reuters) - RWE, BP and Total
were among winners in Britain's first major auction of
offshore wind farm leases in more than a decade, British
authorities said on Monday.
Countries across the globe are racing to build up green
power in order to slow global warming in line with the Paris
climate accord. Britain plans to generate a third of its
electricity from offshore wind by 2030 as part of its own
efforts to reach net zero carbon emissions by 2050.
It had the largest offshore wind market in the world with
around a third of all installed offshore wind capacity at the
end of 2020, followed by Germany with 24% and China with 23%,
according to analysts at Rystad.
A total of six projects, representing just under 8 gigawatts
(GW) of capacity, were successful in the auction. If built, they
could provide enough electricity to power about 7 million homes,
said the Crown Estate, which is responsible for waters around
England and Wales.
BP, in its first move into Britain's offshore wind market,
won two sites representing a total of 3 GW jointly with German
regional utility EnBW, paying more than bidders for
other areas in what Bernstein analysts called a "highly
contested race".
A source at Royal Dutch Shell, which places less
importance than BP on owning renewables power infrastructure,
said it had taken part in the round, but added its offer was
“nowhere close” to BP’s.
"These are highly advanced assets… it's location, location,
location,” BP's low carbon energy chief Dev Sanyal told Reuters,
pointing to the lease's shallow water 30 km from the coast,
which will lower transmission costs and reduce the environmental
impact.
Sanyal expected a final investment decision (FID) on the
windfarms to be taken in 2025, but said it was too early to say
how much the development would cost. BP and EnBW will each pay
around £1 billion ($1.37 billion) in fees for the project before
the FID, in four annual payments of £231 million for each of the
two leases.
BP aims to ramp up renewable power generation to 50 GW by
2030 from 3.3 GW now at returns of 8-10%, while slashing oil
output.
A source at another major that took part in the auction said
they had calculated a lower rate of return, saying BP's price
and volatility expectations were "radically higher".
RWE, Germany's largest power producer and Europe's
third-largest renewables firm after Iberdrola and Enel
, was confirmed as preferred bidder for two sites with
total potential capacity of 3 GW.
The average price RWE was awarded to lease seabed was 82,552
pounds per megawatt (MW) per year, the lowest awarded price
during the auction, the company said.
A venture of French oil major Total and
Macquarie's Green Investment Group secured the rights
to a 1.5 GW project off Britain's East Anglian coast.
Offshore Wind Limited, a venture of Cobra Instalaciones y
Servicios and Flotation Energy, secured a 480 MW site.
Crown Estate Scotland carries out separate auctions for the
waters around the Scottish coast.
Below is a table of the winning bids
Proposed Successful bidder Option Fee Option Fee
Project deposit Bid/£/MW/a
Capacity (£/excl VAT) nnum)
(MW)
1,500 RWE Renewables 114,304,500 76,203
1,500 RWE Renewables 133,350,000 88,900
1,500 Green Investment Group 124,573,500 83,049
1,500 Consortium of EnBW and 231,000,000 154,000
BP
480 Offshore Wind Limited 44,751,840 93,233
1,500 Consortium of EnBW BP 231,000,000 154,000
($1 = 0.7294 pounds)
($1 = 0.7307 pounds)
(Reporting by Susanna Twidale in London, additional reporting
by Christoph Steitz in Frankfurt and Ron Bousso; Editing by
Edmund Blair and Susan Fenton and Kirsten Donovan)
![Alliance News](https://static.lse.co.uk/images/news-logos/alliance-news-logo.png)
UK dividends calendar - next 7 days
Friday 10 May | |
AIB Group PLC | dividend payment date |
Alpha Group International PLC | dividend payment date |
Antofagasta PLC | dividend payment date |
Hammerson PLC | dividend payment date |
Hunting PLC | dividend payment date |
International Personal Finance PLC | dividend payment date |
Invesco Select Trust Global Equity Income PLC | dividend payment date |
Invesco Select Trust UK Equity PLC | dividend payment date |
Johnson Service Group PLC | dividend payment date |
Kerry Group PLC | dividend payment date |
Moneysupermarket.com Group PLC | dividend payment date |
Schroder Asian Total Return Inv Co PLC | dividend payment date |
Schroder European Real Estate Investments Trust PLC | dividend payment date |
Schroder Oriental Income Fund Ltd | dividend payment date |
Serco Group PLC | dividend payment date |
Smurfit Kappa Group PLC | dividend payment date |
Somero Enterprises Inc | special dividend payment date |
Taylor Wimpey PLC | dividend payment date |
Tufton Oceanic Assets Ltd | dividend payment date |
VPC Specialty Lending Investments PLC | dividend payment date |
Monday 13 May | |
Games Workshop Group PLC | dividend payment date |
Life Science REIT PLC | dividend payment date |
Seed Innovations Ltd | special dividend payment date |
Smiths Group PLC | dividend payment date |
VinaCapital Vietnam Opportunity Fund Ltd | dividend payment date |
Tuesday 14 May | |
BlackRock World Mining Trust PLC | dividend payment date |
Fidelity European Trust PLC | dividend payment date |
InterContinental Hotels Group PLC | dividend payment date |
Mondi PLC | dividend payment date |
OSB Group PLC | dividend payment date |
Rathbones Group PLC | dividend payment date |
Uniphar PLC | dividend payment date |
Wednesday 15 May | |
Capital Ltd | dividend payment date |
Grit Real Estate Income Group Ltd | dividend payment date |
Jardine Matheson Holdings Ltd | dividend payment date |
Just Group PLC | dividend payment date |
Rentokil Initial PLC | dividend payment date |
Thursday 16 May | |
abrdn Property Income Trust Ltd | ex-dividend payment date |
Alternative Income REIT PLC | ex-dividend payment date |
Aquila European Renewables PLC | ex-dividend payment date |
Balfour Beatty PLC | ex-dividend payment date |
BlackRock Latin American Investment Trust PLC | dividend payment date |
BP PLC | ex-dividend payment date |
Bunzl PLC | ex-dividend payment date |
Churchill China PLC | ex-dividend payment date |
EJF Investments Ltd | ex-dividend payment date |
Essentra PLC | ex-dividend payment date |
Fevertree Drinks PLC | ex-dividend payment date |
FRP Advisory Group PLC | ex-dividend payment date |
Greencoat UK Wind PLC | ex-dividend payment date |
GSK PLC | ex-dividend payment date |
Haleon PLC | dividend payment date |
Henderson Opportunities Trust PLC | ex-dividend payment date |
Income & Growth VCT PLC | ex-dividend payment date |
Irish Continental Group PLC | ex-dividend payment date |
James Halstead PLC | ex-dividend payment date |
Jarvis Securities PLC | ex-dividend payment date |
Kingfisher PLC | ex-dividend payment date |
M Winkworth PLC | dividend payment date |
Majedie Investments PLC | ex-dividend payment date |
Manx Financial Group PLC | ex-dividend payment date |
Mercantile Investment Trust PLC | dividend payment date |
Morgan Sindall Group PLC | dividend payment date |
Murray Income Trust PLC | ex-dividend payment date |
Ocean Wilsons Holdings Ltd | ex-dividend payment date |
Octopus Renewables Infrastructure Trust PLC | ex-dividend payment date |
PageGroup PLC | ex-dividend payment date |
Pershing Square Holdings Ltd | ex-dividend payment date |
Princess Private Equity Holding Ltd | ex-dividend payment date |
Property Franchise Group PLC | ex-dividend payment date |
Prudential PLC | dividend payment date |
RHI Magnesita NV | ex-dividend payment date |
Shell PLC | ex-dividend payment date |
Spectris PLC | ex-dividend payment date |
Supermarket Income REIT PLC | dividend payment date |
Target Healthcare REIT PLC | ex-dividend payment date |
TClarke PLC | ex-dividend payment date |
Tesco PLC | ex-dividend payment date |
TwentyFour Select Monthly Income Fund Ltd | ex-dividend payment date |
Unilever PLC | ex-dividend payment date |
Vaalco Energy Inc | ex-dividend payment date |
Vector Capital PLC | ex-dividend payment date |
Witan Investment Trust PLC | ex-dividend payment date |
Comments and questions to newsroom@alliancenews.com | |
A full 14-day events calendar is provided each day with a subscription to Alliance News UK Professional. | |
Copyright 2024 Alliance News Ltd. All Rights Reserved. |