Engie and EDP create joint venture for offshore wind farm development
French energy provider Engie and Portuguese EDP have announced last Tuesday the creation of a joint venture. Their aim is to become the world’s second largest offshore wind farm electricity producer with a capacity of 5 to 7 GW in operation by 2025.
“This will allow us to accelerate towards the ambitions that we set up last February. We aim at developing 3 GW per year of renewable energies in the three upcoming years”, declared Gwenaelle Huet, renewable energies manager at Engie.
15 billion euro
Together, the French Engie and Portuguese EDP will bring to the joint venture a portfolio of assets under construction of 1.5 GW, plus 4 GW under development.
The two groups are also complimentary on a geographical plan. EDP has been active in the USA and UK much longer than Engie. On the other hand, the French group has ties with Asia and precious development potential in South Korea and Japan.
Their ambition to bring their portfolio of offshore wind farm capacity to 5 or 7 GW will require an investment of around 15 billion euro. The objective is to auto-finance the activity by conserving 50% of the developed assets.
Second largest production
Despite their merger, the Engie and EDP joint venture only has the ambition to become the world’s second largest offshore wind farm electricity producer. It will still sit behind the Danish Ørsted.
Former lyDong Energy, the Danish company has developed a quarter of today’s worldwide installations. It is planning to increase its total capacity to 11 or 12 GW by 2025, investing 27 billion euro for the next six years.