News

Iberdrola, through its UK subsidiary ScottishPower Renewables (SPR), has selected Siemens Gamesa Renewable Energy (SGRE) as the preferred bidder to supply and install some of the world’s most powerful and productive offshore wind turbines for its £6.5 billion East Anglia Hub programme.

This builds on the companies’ successful track record in working together to deliver the East Anglia ONE offshore windfarm, which was completed last year and has delivered significant jobs and economic benefits for the East of England.

SPR and SGRE have agreed to work together ahead of the next Contracts for Difference auction — scheduled for later this year — to optimise the projects, with the ambition of then signing turbine supply and installation agreements.

Selecting a preferred bidder at such an early stage in the development of the Hub projects creates the opportunity for SPR and SGRE to develop the turbine design and the Hub programme hand in hand, which will help achieve further efficiencies and maximise local supply chain opportunities.

The East Anglia Hub projects have the potential to deliver more than 7.5 % of the UK’s 40GW target for offshore wind generation by 2030 as set out in the Government’s Ten Point Plan. To deliver on the Plan’s ambitions, this year’s Contracts for Difference auction will need to ensure sufficient deployment to put the UK on track to achieve this target.

The potential supply and installation of the East Anglia Hub turbines by SGRE would enable SPR to build on the achievements of East Anglia ONE in terms of jobs and UK supply chain content.

East Anglia ONE supported almost 3,500 jobs at the peak of construction and delivered 100 long-term skilled jobs, with more than half the supply chain coming from the UK market. This included SGRE manufacturing turbine blades in the UK and supporting jobs within local ports, including Lowestoft and Great Yarmouth.

The Hub projects would create a pipeline of continued economic investment that will support jobs and opportunities across the East of England. SPR will continue to work closely with local authorities, groups and local colleges to maximise the potential positive outcomes for local people, building on the success of East Anglia ONE.

SPR will also continue to work with local stakeholders to deliver internship and project-based work, providing young people across East Anglia with valuable work experience and industry knowledge that could set them up for a future career.

Jonathan Cole, Offshore Managing Director of Iberdrola said: “Offshore wind is now one of the cheapest forms of renewable generation and the approach we’re taking with East Anglia Hub — in conjunction with SGRE — shows just how far the industry has come and how well placed we are to deliver the Government’s 40GW target for offshore wind within the next decade.

“Taking advantage of the most innovative technology available to ensure East Anglia Hub is home to some of the biggest and most productive turbines on the market would allow us to realise even greater economies of scale, helping to deliver a cleaner and greener future for us all.

“We’ve already shown what we can achieve through our East Anglia ONE windfarm, which has been a huge success and represents one of the biggest and the most innovative offshore wind projects in the market. And not just in terms of producing green energy and helping tackle the climate emergency, but in having a positive and tangible impact on people, places and businesses. The facts really do speak for themselves and position us perfectly to emulate that success for East Anglia Hub.

“This is a really exciting time for growing the offshore industry and, with SGRE selected as our preferred bidder, we can now take our efforts to the next level – building on the investment, bespoke facilities and economic benefits we’ve already delivered to support local people and jobs to create even longer-lasting legacies that benefit people and communities across the East of England.”

Andreas Nauen, CEO, Siemens Gamesa Renewable Energy, said: “We are delighted to be partnering with Iberdrola towards the next CfD auction to potentially construct another world-leading wind power plant, the East Anglia Hub, following the successful completion of the East Anglia ONE project in 2020.

“These projects could be significant for many reasons, including the input that it will make to both the UK's National Grid and to employment on the east coast of England. For Siemens Gamesa, the potential deployment of our most innovative offshore wind turbine would enable us to additionally aid the UK government's plans for the green recovery by delivering clean energy and meaningful employment for years to come.”

The initial 1,400 MW of power to be generated through the Hub projects via East Anglia THREE has secured planning consent. Planning applications for East Anglia ONE North (800 MW) and East Anglia TWO (900 MW) are currently being examined by the UK Planning Inspectorate. Subject to the outcome of the planning considerations, construction of the East Anglia Hub is expected to commence in 2023, with completion in 2026.