EDP Renewables has signed an agreement with Engie to create a co-controlled 50/50 joint-venture in fixed and floating offshore wind
The agreement follows an announcement in May 2019 of a memorandum of understanding between the companies to form a new entity as an exclusive vehicle of investment by EDPR and Engie in offshore wind opportunities worldwide, bringing together the industrial expertise and development capacity of both companies.
EDPR and Engie are combining their offshore wind assets and project pipeline in the new entity, starting with 1.5 GW under construction and 3.7 GW under development.
The agreement is subject to certain conditions precedent, including the European Commission regulatory approval process.
In May 2019, the companies described offshore wind energy “as an essential part of the global energy transition” and expressed the belief that creating an entity with greater scale, global reach and strong purchasing power would allow them to grow their asset base more rapidly and to operate more efficiently.
They said the JV will primarily target markets in Europe, the US and Asia, areas where most growth is expected to come from. The JV’s ambition is to be self-financed and the projects that will be developed will respect the investment criteria of both companies.
The alliance follows EDPR and Engie’ six-year co-operation as consortium partners in the Dieppe Le Tréport and Yeu Noirmoutier offshore wind projects in France and Moray East and Moray West in the UK.
EDPR and Engie are also partners in two floating offshore wind projects in France and Portugal and in the Dunkerque offshore wind tender currently ongoing in France.
The JV is expected to be operational in Q1 2020.