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Wind turbines in the UK

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31 July 2012

Siemens' plans for a new wind turbine manufacturing facility in the UK have taken a significant step forward, after the company announced it has inked a major new offshore-turbine supply deal with developer DONG energy.

The two companies have signed a framework agreement that will see Siemens supply 300 of its 6MW offshore turbines to offshore wind-farm projects planned by DONG for UK waters between 2014 and 2017.

The financial details of the deal were not disclosed, but analysts estimate that offshore turbines typically cost around €1.4m per MW, putting the total cost of the 1,800MW at €2.52bn.

Under the terms of the deal, Siemens will "design, manufacture, supply, install and service" the turbines, while the two firms have also agreed product and performance warranties.

Significantly, the agreement commits DONG Energy to pay a cancellation fee if the projects covered by the deal are cancelled.


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