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Iberdrola claims primary right for 300 MW German Baltic Sea wind project

Highlights

O-1.3 plot was provisionally awarded to RWE via tender

Iberdrola to invest Eur800 million without subsidies

Adds to Iberdrola Baltic wind hub with 1.1 GW by 2026

Iberdrola has exercised its right of entry for the 300 MW Windanker offshore wind project in Germany's Baltic Sea provisionally awarded to RWE, the Spanish utility said Nov. 5.

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Iberdrola is to invest some Eur800 million ($923 million) to bring the project online by 2026, helping to form a Baltic Wind hub with 1.1 GW capacity, it said.

"The realisation of Windanker on a zero-bid basis confronts us with challenges due to the special conditions in the Baltic Sea," Iberdrola Renovables' Germany head Iris Stempfle said.

Iberdrola already operates the 350 MW Wikinger and is developing the 476 MW Baltic Eagle for a 2024 start in the German Baltic Sea, investing some Eur2.7 billion in the two projects that still benefit from subsidies.

German forward power prices had hit record-highs in October driven by the rally for gas, coal and CO2 prices.

Germany's plans to exit nuclear and coal is to tighten supply, boosting capture prices for renewables.

Offshore wind capture prices hit a record Eur122.50/MWh in September, German EEG system data showed.

S&P Global Platts Analytics forecasts German 2026 baseload power at Eur58.30/MWh, according to its latest five-year forecast published in August before gas prices doubled amid an unprecedented rally.

Platts Analytics latest five-year gas outlook published Nov. 4 sees the annual TTF gas price fall back below Eur20/MWh in 2026.

Projects without subsidies will benefit from Guarantees of Origin, or GOs.

Platts assessed EU wind 2025 GOs at Eur1.60/MWh on Nov. 4.

Drawing lots

Regulator BNetzA initially awarded the O-1.3 plot to RWE, drawing lots after various zero bids were submitted in the September 2021 tender.

An Iberdrola subsidiary holds primary rights having pre-developed the site before a change to awarding sites from feed-in-tariffs to tender.

According to the Iberdrola statement, BNetzA on Nov. 4 confirmed Iberdrola's right of entry for O-1.3.

Iberdrola said that thanks to its experience in the Baltic Sea, it can operate Windanker efficiently by using 15 MW turbines.

Synergies from simultaneous construction with the East Anglia hub in the UK and planned projects in the Baltic Sea will further boost economic viability.

"Until offshore wind energy is fully integrated into the market, we consider an intelligent transitional market design to be necessary," Iberdrola's Stempfle said.

Most of its estimated 1.3 TWh electricity output using a conservative 50% load factor is expected to be allocated to long-term power purchase contracts in the German market, Iberdrola said.

The Prime Minister of the German state of Mecklenburg-Vorpommern Manuela Schwesig welcomed the investment decision saying "we need more offshore wind farms for the energy transition to succeed."

RWE said in a statement Sept. 9 that it plans to construct two offshore wind farms in Germany with a final decision pending until November.

RWE and its partner Northland Power hold primary rights for another site (433 MW N-3.8) in the North Sea that was initially awarded via lot to EDF.

BNetzA confirmed on its website that primary rights were exercised for N 3.8 with the site awarded to Nordsee Two Gmbh, a joint venture of RWE and Northland Power.

GERMAN OFFSHORE WIND TENDERS

2021 tender
MW
Developer
Start
Price (Eur/MWh)
Sea
N-3.7
225
RWE
2026
0
North
N-3.8
433
RWE/Northland
2026
0
North
Windanker
300
Iberdrola
2026
0
Baltic
2017/18 tenders
Kaskasi
342
RWE
2022
above 46
North
Baltic Eagle
476
Iberdrola
2023/24
64.6
Baltic
Arcadis Ost 1
247
Parkwind
2023
NA
Baltic
Gode Wind 3
242
Orsted
2024
81
North
Borkum Riffgrund 3
900
Orsted
2025
0
North
He Dreiht
900
EnBW
2025
0
North

Source: BNetzA , developers