Vattenfall has boosted its presence in the European renewable energy market through the acquisition of AMEC Wind Energy Ltd, a major UK wind farm developer.
The £126.6 million acquisition will allow Vattenfall to expand its presence in the UK market and advance its goal to generate more electricity from green sources. Vattenfall has also entered into a strategic alliance with AMEC for the development of renewable energy projects.
The Sweden-based utility – the fifth largest generator of electricity in Europe – is aiming to produce some 50 TWh of electricity from wind power by 2030 and to achieve climate neutrality by 2050. It sees the UK as a target market for growth and is aiming to play a major role in the development of offshore wind projects in the country.
AMEC Wind owns one of the largest wind development portfolios in the UK with a potential of 573 MW. This will be added to Vattenfall’s existing wind portfolio in the country, which includes the 90 MW Kentish Flats offshore wind farm.
Vattenfall also recently announced plans to make an offer for Eclipse Energy, which is currently developing several wind projects in the UK.
Commenting on the acquisition, Lars G. Josefsson, chief executive officer of the Vattenfall Group said: “This deal provides an excellent opportunity to expand our business in the UK by strengthening our local presence and leveraging our considerable experience in wind power.”
“As part of our strategy to reduce emissions, Vattenfall has very ambitious plans for renewable energy. The UK is a prime target market for future renewables growth, due to its well-functioning support systems, a deregulated and competitive market for electricity and openness to foreign investment.”
AMEC Wind and Vattenfall are aiming to complete development of the existing wind projects in the AMEC portfolio as well as to develop new wind projects in the UK. AMEC Wind’s onshore portfolio in the UK represents 6.5 per cent of UK consented and in-development onshore projects, while its Scottish onshore portfolio represents 9.9 per cent of Scottish consented and in planning onshore projects.
Should all of the projects be realised, the net annual production of the portfolio would be approximately 2 TWh, supplying approximately 400 000 households.
Vattenfall is already one of the world’s largest offshore wind power operators, with a 60 per cent stake in Horns Rev and a 100 per cent ownership of Lillgrund, the world’s third largest offshore wind farm.
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