Green light for Galloper

As part of the overall partnership agreement, Siemens will supply and install 56, six megawatt turbines for the GWFL project and deliver a 15 year maintenance contract. Siemens is due to start installing the 56 SWT-6.0-154 wind turbines for the Galloper project in May 2017. Siemens stated today that it has sold 300 of its SWT-6.0-15 turbines to German and Uk projects.

The wind power plant is scheduled to be fully operational by March 2018. Prompt completion is necessary so that the offshore project can still qualify for remuneration with ROC (Renewable Obligations Certificates) of the 2.5 round for public tenders.  

In an announcement made today, VBMS was awarded the construction and installation of 56 array. The work is expected to commence in 2016.

Energy Minister Andrea Leadsom who infamously wrote to the Prime Minister calling for cuts to wind farm subsidies, criticised the pre-coalition Labour government for signing up to an EU target of 15 per cent of the UK's energy to come from renewables by 2015 and was on the record as questioning the believability of climate change said: “This is fantastic news for the region and the whole of the UK, reflecting the fact that we are open for business and the best place in the world to invest in offshore wind. This milestone shows how the UK’s offshore wind industry is going from strength to strength.”

Hans Bünting, CEO of RWE Innogy said: “Today’s announcement is the culmination of many months of successful negotiations with our partners and investors and shows that the UK is still a strong market for offshore renewables. Siemens, as well as becoming a project partner will also, through their technical division, support key aspects of the project including turbines, turbine installation and maintenance support. We welcome GIB, with their experience of supporting renewables ventures and their substantial knowledge of offshore wind financing, back to another offshore partnership, their first ever equity investment being a stake in our Rhyl Flats project."

Bünting further commented: "Macquarie Capital bring considerable international business and finance acumen as well as a strong track record advising and investing in infrastructure and energy projects globally. I look forward to working together to utilise our collective experience and expertise to realise the successful construction of Galloper wind farm.”

Macquarie Capital, the principal investment, advisory and capital markets arm of Macquarie Group, furthers its ongoing interest in the European renewables market following today’s announcement.

Wolfgang Bischoff, Head of Energy Finance EMEA at Siemens Financial Services said: “Again we will work alongside some of the offshore wind industry’s most experienced players on a project that will make a significant contribution to the UK’s renewable energy goals. Achieving financial close quickly was an essential component for Galloper to remain on-track in regards to construction as well as becoming operational in time to qualify from the government’s Renewable Obligation Certificate subsidies. The speed in which it was achieved owes much to the hard work of our project partners, as well as the strong market confidence in Siemens’ technical and financial experience in this sector.”  

Galloper offshore wind farm is an extension of the existing and fully operational 504MW Greater Gabbard Wind Farm off the coast of Suffolk. Following community consultation, in-depth site investigations and a thorough examination by the Planning Inspectorate, Galloper was awarded Development Consent in May 2013. The wind farm, which has grid connection secured, represents an expected investment potential of more than £1.3 billion.

The wind power plant is to be erected around 27 kilometers off the coast of Suffolk. The wind turbines will be constructed on monopiles in water between 27 and 36 meters deep.

Just over a year ago the project looked doomed as RWE reviewed the development status of the Galloper offshore wind farm as a ROC accredited project. Despite the then positive investor interest RWE announced the decision not to continue with the development of Galloper. The concern was the tight time scales available to secure financing whilst still achieving accreditation under the Renewable Obligation, which at that time the thought was an unacceptable balance of risk and reward based on the investment disciplines embraced by the RWE Group.

Simon Gray, CEO of the East of England Energy Group stated:  "it is (Galloper) an attractive proposition with shallow water, planning consents agreed etc and that the recent investments have shown that external foreign investment is available. London Array went through a similar experience when Shell announced that they were pulling out and industry thought the project was dead only for other investors to pitch up.  It is also worth reinforcing that the East of England’s role in energy production is significant to the whole of the UK due to the regions unique mix of nuclear, renewables and gas. "

He sees projects such as Galloper as essential and lobbies that government should create the conditions in which offshore wind has the support it needs to ensure the UK has the generation capacity to keep the nations lights on whatever disasters happen, unplanned outages and severe weather conditions.

Simon Added: "I cannot emphasise enough the importance of ensuring Government gives more confidence to the supply chain for investing in the development of offshore renewables if we are to maximise the benefit to UK PLC in terms of security of supply, job creation and UK content in major strategic energy developments."

Click here to view the project on our interactive map.