WHILE TORIES OPPOSE UAE BUYING THEIR FAVORITE RAG THE TELEGRAPH
Jonathan Leake
Tue, 5 December 2023
Offshore Wind
The United Arab Emirates has snapped up a 49pc stake in one of the UK’s largest wind farms despite soaring costs throwing the industry’s future into doubt.
Masdar, a company controlled by the Gulf state and chaired by the president of the Cop28 climate talks, has bought a minority stake in the East Anglia Three offshore wind farm from Spanish developer Iberdrola.
It is the second such deal struck by the UAE in as many weeks. State-backed Masdar bought 49pc of the £11bn Dogger Bank South project in the North Sea last week. That project is built by German-owned RWE.
Sales of UK wind farms are being propelled by the disastrous finances of many UK projects after they entered into historical deals to sell their electricity at prices that no longer make sense.
Companies accepted so-called strike prices of less than £40 per megawatt hour (MWh) in deals made a few years ago. Strike prices are the maximum price that the Government guarantees to pay for the power produced, meaning revenues are effectively capped.
Iberdrola, the largest utility in Europe and one of the two largest globally, agreed a strike price of £37.35 for East Anglia Three in early 2022.
However, the sector has since been hit by rampant inflation that has driven up costs by more than 40pc. Those who accepted the older, lower prices risk making big losses.
The Government has now been forced to offer new wind farm developers a strike price of £73, signifying the scale of the financial challenges for those locked into lower priced deals.
Masdar’s investment reinforces the growing overseas ownership of the UK’s key renewable energy assets. The UAE company’s investment dates back a decade when, with partners, it launched the 630MW London Array offshore wind farm, which was the world’s largest at the time.
Its Global Offshore Wind Division last year acquired London-based Arlington Energy, the battery energy storage system developer that has put over 170MW of assets into operation.
Off the coast of Scotland, Masdar has also developed the world’s first floating offshore wind farm, the 30MW Hywind project.
Masdar is chaired by Dr Sultan Al-Jaber, the UAE Minister of Industry and Advanced Technology, who is currently chairing the Cop28 talks in Dubai. Dr Al-Jabar is also the chairman of International Media Investments (IMI), the UAE investment vehicle financing a bid for The Telegraph.
Masdar’s owners include two Emirati oil companies – the Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi National Energy Company (TAQA). Both also operate oil and gas platforms in the North Sea.
Dr Jaber said: “Masdar and Iberdrola are advancing renewables in Europe and around the world.”
Iberdrola’s executive chairman, Ignacio Galán, said: “By combining our renewables experience and financial strength with those of Masdar, we can deliver more secure, competitive and clean energy, quicker.”
Jonathan Leake
Tue, 5 December 2023
Offshore Wind
The United Arab Emirates has snapped up a 49pc stake in one of the UK’s largest wind farms despite soaring costs throwing the industry’s future into doubt.
Masdar, a company controlled by the Gulf state and chaired by the president of the Cop28 climate talks, has bought a minority stake in the East Anglia Three offshore wind farm from Spanish developer Iberdrola.
It is the second such deal struck by the UAE in as many weeks. State-backed Masdar bought 49pc of the £11bn Dogger Bank South project in the North Sea last week. That project is built by German-owned RWE.
Sales of UK wind farms are being propelled by the disastrous finances of many UK projects after they entered into historical deals to sell their electricity at prices that no longer make sense.
Companies accepted so-called strike prices of less than £40 per megawatt hour (MWh) in deals made a few years ago. Strike prices are the maximum price that the Government guarantees to pay for the power produced, meaning revenues are effectively capped.
Iberdrola, the largest utility in Europe and one of the two largest globally, agreed a strike price of £37.35 for East Anglia Three in early 2022.
However, the sector has since been hit by rampant inflation that has driven up costs by more than 40pc. Those who accepted the older, lower prices risk making big losses.
The Government has now been forced to offer new wind farm developers a strike price of £73, signifying the scale of the financial challenges for those locked into lower priced deals.
Masdar’s investment reinforces the growing overseas ownership of the UK’s key renewable energy assets. The UAE company’s investment dates back a decade when, with partners, it launched the 630MW London Array offshore wind farm, which was the world’s largest at the time.
Its Global Offshore Wind Division last year acquired London-based Arlington Energy, the battery energy storage system developer that has put over 170MW of assets into operation.
Off the coast of Scotland, Masdar has also developed the world’s first floating offshore wind farm, the 30MW Hywind project.
Masdar is chaired by Dr Sultan Al-Jaber, the UAE Minister of Industry and Advanced Technology, who is currently chairing the Cop28 talks in Dubai. Dr Al-Jabar is also the chairman of International Media Investments (IMI), the UAE investment vehicle financing a bid for The Telegraph.
Masdar’s owners include two Emirati oil companies – the Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi National Energy Company (TAQA). Both also operate oil and gas platforms in the North Sea.
Dr Jaber said: “Masdar and Iberdrola are advancing renewables in Europe and around the world.”
Iberdrola’s executive chairman, Ignacio Galán, said: “By combining our renewables experience and financial strength with those of Masdar, we can deliver more secure, competitive and clean energy, quicker.”
Iberdrola and Masdar to invest $16 billion in green energy
Tue, 5 December 2023
Illustration shows Electric power transmission pylon miniatures and Iberdrola log
By Pietro Lombardi
MADRID (Reuters) - Spanish renewable energy giant Iberdrola and UAE clean energy developer Masdar have formed a 15 billion euro ($16.2 billion) alliance to invest in offshore wind and green hydrogen in countries including Germany, Britain and the United States.
The agreement announced on Tuesday follows a pledge by 118 countries at the COP28 climate summit in Dubai to triple the world's renewable energy capacity by the end of the decade as they seek to wean themselves off fossil fuels.
"Reaching this goal will require immediate action from these governments and the private sector," said Iberdrola Executive Chairman Ignacio Galan.
The first step of the partnership will be for Masdar to take a stake of up to 49% in Iberdrola's 1.4 gigawatt (GW) offshore wind project off Britain's eastern coast, known as East Anglia 3, the Spanish company said.
"With an abundance of wind resources, the UK and Europe are prime markets for Masdar," said Masdar Chief Executive Mohamed Jameel Al Ramahi.
The two companies have previously teamed up to develop an offshore wind farm in German waters in the Baltic Sea and announced separate multibillion-euro investment plans in Britain, the world’s second-largest offshore wind market behind China.
Last week Masdar and Germany's RWE said they would co-develop a 3 GW wind project off the coast of Britain. Masdar's 49% stake in the project is part of its roughly 13 billion euro investment in the country's renewables sector, it said.
Iberdrola has pledged to invest nearly 14 billion euros in Britain through 2028 in grids and renewable projects and is also planning a bid for British power distribution network Electricity North West (ENWL)
($1 = 0.9252 euros)
(Reporting by Pietro Lombardi and Jakub Olesiuk; Editing by Kirsten Donovan and David Goodman)
Tue, 5 December 2023
Illustration shows Electric power transmission pylon miniatures and Iberdrola log
By Pietro Lombardi
MADRID (Reuters) - Spanish renewable energy giant Iberdrola and UAE clean energy developer Masdar have formed a 15 billion euro ($16.2 billion) alliance to invest in offshore wind and green hydrogen in countries including Germany, Britain and the United States.
The agreement announced on Tuesday follows a pledge by 118 countries at the COP28 climate summit in Dubai to triple the world's renewable energy capacity by the end of the decade as they seek to wean themselves off fossil fuels.
"Reaching this goal will require immediate action from these governments and the private sector," said Iberdrola Executive Chairman Ignacio Galan.
The first step of the partnership will be for Masdar to take a stake of up to 49% in Iberdrola's 1.4 gigawatt (GW) offshore wind project off Britain's eastern coast, known as East Anglia 3, the Spanish company said.
"With an abundance of wind resources, the UK and Europe are prime markets for Masdar," said Masdar Chief Executive Mohamed Jameel Al Ramahi.
The two companies have previously teamed up to develop an offshore wind farm in German waters in the Baltic Sea and announced separate multibillion-euro investment plans in Britain, the world’s second-largest offshore wind market behind China.
Last week Masdar and Germany's RWE said they would co-develop a 3 GW wind project off the coast of Britain. Masdar's 49% stake in the project is part of its roughly 13 billion euro investment in the country's renewables sector, it said.
Iberdrola has pledged to invest nearly 14 billion euros in Britain through 2028 in grids and renewable projects and is also planning a bid for British power distribution network Electricity North West (ENWL)
($1 = 0.9252 euros)
(Reporting by Pietro Lombardi and Jakub Olesiuk; Editing by Kirsten Donovan and David Goodman)
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