Germany – Ørsted has made a final investment decision (FID) on two German offshore wind farms, Gode Wind 3 (242 MW) and Borkum Riffgrund 3 (900 MW), which are scheduled to come online in 2024 and 2025, respectively.
Corporate demand for long-term power purchase agreements is growing, which can complement regulatory mechanisms like contracts for difference, which provide long-term price certainty for both developers and electricity customers. Both are necessary to meet future industrial and societal demands for green energy.
Ørsted has signed CPPAs for a total of 786 MW on Borkum Riffgrund 3 with Covestro (100 MW), Amazon (350 MW), REWE Group (100 MW), BASF (186 MW), and Google (50 MW) in order to support the final investment decision by providing a high level of revenue certainty for Borkum Riffgrund 3.
Glennmont Partners acquired a 50% stake in Borkum Riffgrund 3 on October 19th of this year. Glennmont’s agreement was contingent on a number of pre-conditions, including Ørsted’s final investment decision. Ørsted expects to complete the transaction no later than Q1 2022, having received the final investment decision, project permit, merger clearance, and foreign investment clearance.