Japanese group Mitsubishi Corporation (MC) has sealed two deals to buy into German offshore wind grid-connections, with a total investment of €576m ($765m), in a boost for the sector.
Mitsubishi has closed its agreement with transmission system operator (TSO) TenneT on the high-voltage cable projects BorWin1 and BorWin2, in which it will take a stake of 49% for €240m.
The two companies signed the initial agreement in February 2012.
TenneT and Mitsubishi also confirmed a contract for an investment in two more offshore projects, HelWin2 and DolWin2, in which the Japanese firm will also acquire a 49% interest for €336m. The companies signed a letter of intent on that second investment in March last year. “This is an important step for our long term partnership with Mitsubishi Corporation,” says TenneT CEO Mel Kroon. “I am pleased that we managed to come to a final close shortly after the recent announcement of necessary improvements of the German Energy Law, which was enacted 1 January 2013.”
During the last year numerous reports have stated that the German transmission system operator (TSO), TenneT, has problems connecting all upcoming German offshore wind farms to the grid due to lack of capacity. In Germany, it is not the project developer that is responsible for connecting offshore wind farms to the grid, it is the TSO. The fact that Mitsubishi now is able to buy into German offshore wind projects will certainly boost the German market, and bring back the optimism in this rapidly developing market. It also proves that the offshore wind market is growing more international, with cross-border investments and cooperation.