Iberdrola confirms Siemens Gamesa order for 1.4-GW East Anglia Three

March 29 (Renewables Now) - ScottishPower, part of Spanish utility Iberdrola SA (BME:IBE), has signed a firm contract with wind turbine maker Siemens Gamesa for its 1.4-GW MW East Anglia Three offshore wind project in the UK, the parties said today.

Siemens Gamesa will supply 95 units of 14.7 MW turbines for the development off England’s east coast.

The contract, worth GBP 1.3 billion (USD 1.6bn/EUR 1.5bn) is the largest ever awarded by ScottishPower.

Siemens Gamesa said it has been hit by the economic challenges facing renewables supply chains and the firm order “has only been possible due to the parties' unwavering commitment to support the project.”

“In these challenging times, it is encouraging to sign this firm order with ScottishPower Renewables as we jointly move to a more financially sustainable wind industry, but we need the UK government to fully recognise that renewable energy, especially wind generation, is now on the same level of importance as oil and gas and requires similar levels of support to ensure it delivers what the UK needs to reach crucial Net Zero targets,” said Siemens Gamesa Offshore chief executive Marc Becker.

Commenting on the announcement, UK prime minister Rishi Sunak pointed out that the Spring Budget enables businesses including ScottishPower to write off the full cost of equipment and machinery in the first year they invest.

East Anglia Three, which has been over 13 years in the making, is the second of four projects planned in the ScottishPower’s 2.9-GW East Anglia Hub. It secured a contract for difference (CfD) from the UK government last year.

Siemens Gamesa said the contract with ScottishPower includes a service agreement, initially for eight years. It also marks the first installation of its SG 14-236 DD offshore wind turbine in UK waters. The prototype of the model recently generated first power at the Osterild Test Center in Denmark, the manufacturer added.

Iberdrola on Wednesday also announced a major partnership with Amazon.com Inc (NASDAQ:AMZN).

(GBP 1 = USD 1.233/EUR 1.137)