Nordsee 1 reaches financial close

GERMANY: Northland Power and RWE Innogy have reached financial close on the €1.2 billion, 332MW Nordsee 1 project in the North Sea.

The Nordsee cluster is located 40 kilometres off the German coast
The Nordsee cluster is located 40 kilometres off the German coast

According to RWE, 70% of the project finance will be supplied through an €840 million non-recourse loan.

Financing was arranged with ten lenders, including the Bank of Montreal, Export Development Canada, KfW Ipex and the National Bank of Canada.

Northland owns an 85% stake in the project, with RWE holding the remaining 15%. The Canadian utility acquired the majority stake in the Nordsee 1 cluster from RWE in September.

In January, Northland secured $121 million (€113 million) in funding from the sale of debentures to help fund its offshore projects, including Nordsee 1.

Nordsee 1 is eligible for a fixed feed-in tariff subsidy for ten years under the new German Renewable Energy Act.

With financial close, the developers have also confirmed the order of 54 Senvion 6.15MW turbines.

In April 2014, RWE was forced to re-tender for a turbine supplier following a technical issue with the Senvion turbines it was planning to use.

At the time, a spokesperson for RWE said the developer was "optimistic that Senvion is able to deliver reliable wind turbines", but a back-up supplier would be found so as "not to jeopardise the project".

Nordsee 1 is located 40 kilometres off the German coast, with construction expected to begin next year and commissioning planned for 2017.

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