Ørsted has confirmed it has discovered an array cable issue on several of its offshore windfarms in the UK and continental Europe
The company said an early assessment points to a total financial impact of around Dkr3Bn (US$490M) in the period 2021-2023. The issue was disclosed in an interim financial report for Q1 2021.
The Dkr3Bn figure includes a warranty provision of Dkr800M (US$130M) to cover potential costs towards partners, with the largest cash outflows in 2022 and 2023, and with approximately one third expected to be capitalised.
Investigations are ongoing concerning the issue and the remediation measures needed, including the impact in relation to suppliers, partners and insurance.
Ørsted said the issue occurs when a cable protection system (CPS) moves across scour protection – the rock placed on the seabed around the foundations of a turbine to avoid seabed erosion – abrading the CPS and in the worst-case causing the cable to fail.
“We are taking proactive measures to ensure the long-term integrity of these assets by engaging in a two-phased remediation approach, with phase one being stabilisation of the CPS to prevent further degradation and phase two being the repair or replacement of damaged cables,” Ørsted said.
“Stabilisation will deliver the optimal value risk management in the short-term to prevent further damage and could eliminate the need to repair or replace most of the less badly damaged cables in phase two. We expect a limited production downtime related to the stabilisation activities.”
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