Poland

Poland

Innogy and Nordex collaborating on 1.7GW pipeline

Innogy and Nordex have agreed a strategic partnership to work together on a 1.7GW pipeline of onshore wind farms in Europe and the US.

Innogy stated that it plans to buy Nordex turbines exclusively between 2019 and 2022
Innogy stated that it plans to buy Nordex turbines exclusively between 2019 and 2022

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Under the agreement, which was initially signed in October 2018, Innogy stated that it plans to buy Nordex turbines exclusively between 2019 and 2022.

Innogy’s chief operating officer (COO) Hans Bünting said Nordex was chosen as a partner following a tender.

Innogy COO Hans Bünting, said: "Thanks to the strategic partnership with Nordex we have been able to optimise our procurement strategy for onshore wind turbines."

Nordex will supply Innogy with six turbines for an unspecified project in the US on a ‘safe harbour’ basis.

This means Innogy can claim production tax credits (PTCs) on 2018 terms and conditions, and secure more valuable support, by buying components at an early stage.

The deal will also enable Innogy to complete its 126MW Cassadaga and 240MW Baron Winds projects in New York, subject to an investment decision.

Both wind farms will mainly use Nordex turbines, the developer added.

The two companies were also successful in Poland’s first onshore wind auction, securing capacity for the 33MW Zukowice project.

Innogy plans to make investment decision shortly and Nordex expects to receive turbine order in second half of 2019

José Luis Blanco, CEO of the Nordex Group, added: "This new type of all-round collaboration covers the entire value chain for all onshore projects.

"Our joint aim here is to reduce the cost of energy over the entire life cycle of the turbines with a view to promoting the further development of wind energy."

Innogy has also awarded a contract to Siemens Gamesa to supply 63 turbines for its 242MW Scioto Ridge wind farm in Ohio, However, this project is at an advanced stage – preliminary construction work was carried out at the site at the end of 2018 – and was planned prior to Innogy’s strategic partnership with Nordex, a spokeswoman explained.

Asset swap breakthrough

Innogy is part of a complex, ongoing asset swap deal, in which E.on will receive a 76.8% stake in Innogy, while RWE will acquire a 16.67 "effective participation" in E.on.

Effectively, Innogy owner RWE will receive the renewable assets and gas storage business of its subsidiary, while E.on will only buy Innogy’s grid and retail business.

On 22 January, RWE announced it has registered its purchase of the renewables business of E.on and Innogy with the European Commission, it announced.

Registration is the first official step in formalising the various merger procedures between the two companies.

It follows several months of the European Commission carrying out preliminary examinations of the transaction, which was first announced in March 2018.

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