Siemens Awarded Possible $1.2 Billion Wind Turbine Order

Siemens has been awarded a wind turbine order for 580 MW by DONG Energy for the Race Bank wind power plant which could be worth up to $1.2 billion.

Siemens will provide 91 of its 6 MW direct drive wind turbines to the Race Bank offshore wind power project, set to be located approximately 32 kilometers off the British eastern coast. Upon completion, which is set for the beginning of 2018, the 580 MW project will generate enough electricity to supply approximately 400,000 British households.

The 154 meter turbines are slated to undergo installation beginning spring 2017, with the Race Bank park spreading out over a 62 square kilometer area, in depths between 6 and 26 meters.

“We are pleased that DONG Energy has once again chosen our 6 MW direct drive wind turbine, the workhorse for offshore wind power plants,” said Michael Hannibal, CEO Offshore of the Wind Power and Renewables Division at Siemens. “We are working hard to bring the costs of offshore wind energy down to make it competitive with other sources of power generation.”

Specifically, Siemens notes that recent analysis shows the cost of offshore wind energy has fallen by 11%, according to a study published by RenewableUK. “Thus, the offshore industry is fully on track to meet the 2020 cost targets,” added Hannibal.

Commenting on the project, a Bloomberg New Energy Finance analyst suggested that the deal between Siemens and DONG Energy could be worth as much as $1.2 billion. Tom Harries, a BNEF analyst, said that the total project cost could be as much as $2.6 billion, with the specific deal between Siemens and DONG Energy for the wind turbines accounting for $1.2 billion “on today’s costs.”