German utility company RWE (RWEG.DE) has announced its acquisition of three offshore wind projects situated off the English coast from Sweden’s Vattenfall (VATN.UL) in a transaction valued at £963 million ($1.2 billion).
The portfolio in question is the UK Norfolk Offshore Wind Zone, comprising three 1.4-gigawatt projects, and the deal is anticipated to conclude in the first quarter of 2024.
In a separate statement, Vattenfall expressed its confidence that this agreement with RWE represents the optimal course of action for both the company and the Norfolk projects.
Vattenfall had earlier in the year halted the development of Norfolk Boreas, one of the wind farms within the Norfolk cluster.
The decision was made due to a disparity between escalating costs and the agreed-upon electricity sales prices.
The divestment of these assets will result in the reversal of the impairment and provisions that Vattenfall reported earlier in the year.
This pause in Norfolk Boreas development was projected to impact earnings by 5.5 billion Swedish crowns ($543.95 million).
RWE has stated its intention to resume the development of the Norfolk Boreas project.
Meanwhile, the other two projects, Norfolk Vanguard West and Norfolk Vanguard East, will actively pursue a contract for difference in one of the upcoming UK auction rounds.
RWE has further affirmed that all three Norfolk projects are slated for commissioning within this decade.
This acquisition underscores the ongoing commitment to the expansion of renewable energy infrastructure and the advancement of offshore wind power generation in the region, reflecting the broader global trend toward sustainable and environmentally responsible energy sources.