The Anonymous Widower

BayWa r.e. Unveils Subsidy-Free Floating Wind Project Offshore Portugal

The title of this post, is the same as that of this article on offshoreWIND.biz.

This is the first paragraph.

BayWa r.e. has officially applied to secure the rights for an exclusive use of the seabed for a commercial-scale floating offshore wind project in Portugal, which the company said will be the first subsidy-free floating wind farm in the world.

Note.

  1. BayWa are a German company headquartered in Munich.
  2. The windfarm will have a 600 MW capacity in total, in a dedicated zone off the coastline of Viana do Castelo.
  3. It will be a floating wind farm.
  4. Viana do Castelo is situated at the mouth of the Lima River and is about 74 km. to the North of Porto.

But surely the most significant fact about this project is that it is subsidy-free.

BayWa And Subsidy-Free Wind Farms

This page on the BayWa web site is entitled BayWa r.e. Sells UK’s First Subsidy-Free Wind Farm.

This is the first paragraph.

BayWa r.e. has reached a milestone for itself and the UK renewable energy sector with the completion and sale of the country’s first subsidy-free windfarm to James Jones & Sons Ltd and London-based specialist asset manager, Gresham House Asset Management.

Note.

  1. This is the first time, I’ve seen Gresham House associated with wind farms.
  2. BayWa appear to have a fifteen year agreement with Tesco for the generated electricity.

The whole page is a must read.

 

Conclusion

Does this mean, that we will be seeing subsidy-free floating wind farms around the UK?

Get the engineering, manufacturing and financial support right for floating wind farms in the UK and wind farms could be bumper-to-bumper around these islands.

October 17, 2022 - Posted by | Energy, Finance | , , , , , ,

2 Comments »

  1. Effectively, with high wholesale prices renewable projects with CfD already are subsidy-free. In fact, they provide funds which are credited to the retail price. (Ofgem seem to have taken down their chart on the current contribution CfD is making, but their estimate was £25 per average bill for the current winter.) If the proposal to replace the older RO contracts with CfD goes ahead, then that sum should be even larger – depending on wholesale price. The crunch will come once we get past dependence on gas and the retail price falls below the strike price. Then they’ll be subsidised again.

    Comment by Peter Robins | October 17, 2022 | Reply

    • It will be interesting to see how Cerulean’s massive project to decarbonise the North Sea is funded, but it looks the wind will be blowing it along.

      Comment by AnonW | October 17, 2022 | Reply


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