Dong Energy buys 900 MW of offshore wind projects in Germany

Aug 14, 2012 - Danish state-owned utility Dong Energy A/S today said it had acquired three wind projects off Germany's coast with a combined capacity of up to 900 MW from German wind farm developer PNE Wind AG (ETR:PNE3).

The projects -- Gode Wind 1, 2 and 3 -- are located in the German North Sea near the island of Norderney. The acquisition price includes an upfront payment of EUR 57 million (USD 70.5m) plus additional deferred payments of up to EUR 100 million that are subject to certain milestones being achieved such as an investment decision to build the wind farms.

Dong Energy said the Gode Wind 1 and 2 projects had permits for construction and operation, though some amendments to the permits were needed to make use of the projects' total capacity. The two developments also have unconditional grid connection confirmation for 584 MW from the grid operator TenneT. Gode Wind 3 is expected to get a construction and operation permit next year. The Gode Wind 3 acquisition is subject to the project receiving the relevant approvals by the end of January 2014.

Dong Energy said the deal was part of its efforts to secure a stronger position in Germany's expanding offshore wind sector.

(EUR 1.0 = USD 1.237)

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