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Analysis: Major deals set challenge for top offshore supplier status

EUROPE: The battle between Siemens and MHI-Vestas (MV) for supremacy in the offshore market is intensifying as both firms took preferred supplier status with major orders.

Good start …Siemens new 7MW model has been named preferred turbine for East Anglia project
Good start …Siemens new 7MW model has been named preferred turbine for East Anglia project

Siemens' investment in building a factory in Hull, northern England, looks to have paid off with SSE's decision to give the manufacturer the edge for the 714MW East Anglia project. There has been a lot of industry interest in East Anglia as one of the last Round 3 projects without a turbine deal.

But the Siemens win is unsurprising, given its UK assembly and blade manufacturing plant. Recent correspondence uncovered by Windpower Monthly between Siemens and the UK government showed there would be some form of local sourcing policy in place.

In this case, the contract is for 102 Siemens 7MW turbines to go to the project, located in the North Sea off England's east coast. Scottish Power Renewables said the project will be commissioned in 2019, while construction will start in 2017. According to Windpower Intelligence, Windpower Monthly's data division, Scottish Power's East Anglia One is consented for up to 1.2GW, as the first phase of the 7.2GW East Anglia Round 3 zone.

East Anglia One was initially being co-developed by Vattenfall and Scottish Power, but it is now being developed solely by Scottish Power. A phased development of 714MW is planned, but Scotish Power may aim to build out the full project by securing further capacity in future contract for difference subsidy auctions.

In Germany, MV was given preferred supplier status by Dong Energy for the 450MW Borkum Riffgrund 2 project and received a conditional contract for its 330MW half of the Walney extension. The Borkum Riffgrund 2 contract is for 56 V164 8MW turbines to go to the project, which is located in the German North Sea.

In a statement, Dong said it planned to sign an unconditional order later this year. It added that this was conditional upon it making a final investment decision on the project.

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