Siemens to build turbines for wind park, funding in place

Reuters News
Posted: Feb 08, 2013 7:21 AM

FRANKFURT (Reuters) - Germany's Siemens said it has won an order worth 700 million euros ($937 million) to deliver 80 wind turbines to the Butendiek offshore wind power plant in the North Sea.

The Siemens order includes a service contract for a period of 10 years, the company said on Friday.

The total cost to set up the wind park with a capacity of 288 megawatts (MW) in the German North Sea some 32 km west of the isle of Sylt is estimated at 1.4 billion euros.

Project company wpd said that construction would begin in 2014 and operational start-up was scheduled for 2015.

A group of 12 banks, including German state development bank KfW, the European Investment Bank (EIB), Danish export credit insurer EKF, UniCredit and Bremer LB will provide loans totalling 937 million euros.

KfW will lend 239 million euros as part of a 5-billion-euro financing program for offshore wind launched in 2011.

The remainder of the capital is to be provided a group of investors including infrastructure and pension funds Industriens Pension, Marguerite, and PKA.

"The completion of this financing is a clear signal to the market - it (offshore wind financing) will be continued," said KfW Chief Executive Ulrich Schroeder.

Leaving the Left
John Stossel

Germany last year removed some hurdles to funding of offshore wind parks, which had been beset by delays linked to extension of the grid network, approving a draft law under which liabilities stemming from delays in cabling could be passed on via an extra charge to consumers.

(Reporting by Christoph Steitz, Vera Eckert, Andreas Kroeners; editing by Jason Neely)