DONG Energy A/S

London Array consortium welcomes Government move to increase support for offshore wind

Press Release   •   Apr 23, 2009 13:09 BST

Press release from DONG Energy sent at 02:09 PM on Thursday 23.04.2009

London Array consortium welcomes Government move to increase support for offshore wind

The companies behind London Array, the world’s largest offshore wind farm, have welcomed the UK Government’s proposal to increase its incentives to build offshore wind farms. 

DONG Energy, E.ON and Masdar, which make up the joint venture, were reacting to the Government’s energy proposals. The Government proposes to increase the number of Renewable Obligation Certificates (ROCs) available for offshore wind generation. Recognising the contribution offshore wind will make to reducing the UK’s carbon emissions, the Government proposal was to issue two ROCs for every megawatt hour of offshore power produced, doubling the original incentive.


The partners will now await the findings of the Government’s review and consultation process but believe the proposed increased incentive will help boost the economics of the London Array scheme and so its commercial viability. The partners will now conclude their review processes before making an announcement on the final investment decision for the first phase in the near future.


Anders Eldrup, Chief Executive of DONG Energy A/S, said: "We welcome the two ROC announcement which will support the development of offshore wind in the UK. Realising the London Array project is an important step to continue DONG Energy's offshore development, and to the implementation of our strategy of significantly expanding our position within sustainable energy.”


Dr Wulf Bernotat, Chief Executive of E.ON AG, said: “We very much welcome the move by the UK Government to increase its support for offshore wind. The enhanced incentives will help transform the industry and improve the economics for the pioneering London Array project. The Government’s decision recognises the difficulties that energy companies face when they look to build offshore wind. We feel optimistic about the future of the offshore wind industry in the UK and the London Array scheme.”


“We applaud the responsiveness of the UK government to the needs of a growing and incredibly vital industry,” said Dr. Sultan Al Jaber, CEO Masdar.


London Array would eventually be the world’s first 1GW offshore wind farm, and would be built around 20km off the coasts of Kent and Essex. Once built, it will supply enough power for approximately 750,000 homes – or a third of Greater London homes.


The wind farm will be installed on a 90 square mile site and will be built in two phases. The consortium hopes the first phase of 630MW will be completed in 2012 and generating during the London Olympic Games. The first phase will consist of 175 turbines. The second phase will add enough capacity to bring the total to 1,000MW.




Notes to editors:

The project consortium partners have the following shareholdings: DONG Energy owns 50%, E.ON has 30% and Masdar has a 20% stake. The Renewable Obligation is the main support scheme for renewable electricity projects in the UK. It places an obligation on UK suppliers of electricity to source an increasing proportion of their electricity from renewable sources. A Renewables Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. After today’s announcement, two ROCs will be issued for each megawatt hour (MWh) of renewable output generated from an eligible offshore wind farm. DONG Energy is one of the leading energy groups in Northern Europe. We are headquartered in Denmark. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. We have approximately 5,500 employees and generated more than DKK 60 billion (approx. EUR 8.2 billion) in revenue in 2008.


DONG Energy is a market leader in offshore wind power, having built around half of all offshore wind farms globally. The UK is one of DONG Energy’s primary markets concerning offshore wind. DONG Energy is the sole owner of the 90MW Burbo Bank and 50% owner of the 90MW Barrow project, both of which are in commercial operation in the East Irish Sea. The Gunfleet Sands I+II (total 172MW) commenced construction in early 2008 in the Thames Estuary and are scheduled for commercial operation by the end of 2009. Further, DONG Energy has a substantial pipeline of offshore wind projects in UK which are currently under planning and development. For more information, please visit 


E.ON is one of the world’s leading power and gas companies. With annual sales of just over EUR86 billion and over 93,000 employees, it is already one of the world’s largest investor-owned power and gas companies. E.ON Climate & Renewables, headquartered in Düsseldorf, Germany, is responsible for E.ON Group’s global renewables and climate protection activities. E.ON is investing billions of Euros in renewable generation and climate protection projects and will play a leading role in the development of the renewables industry worldwide. E.ON currently has 2.2GW of renewable capacity in operation which makes E.ON a leading global renewable player. In the UK, E.ON’s renewables development In the UK, E.ON’s renewables development portfolio could, if built, power a million homes and displace the emission of around two million tonnes of CO2. E.ON owns and operate Scroby Sands offshore wind farm in the UK and is currently building the £325m 180MW Robin Rigg offshore wind farm in the Solway Firth. Renewable energy projects in other countries include developing Rødsand II, a 207MW offshore wind farm of the Danish coast and, with partners, the 60 MW Alpha Ventus offshore wind farm which is currently being built off the north coast of Germany. This is the first deep water far shore scheme of its kind. 


The Masdar Initiative is Abu Dhabi’s multi-faceted investment in the development and commercialization of innovative technologies in renewable, alternative and sustainable energies as well as sustainable design. Masdar, a wholly owned company of the the Mubadala Development Company (Mubadala). In January 2008, Abu Dhabi announced it will invest $15 billion in Masdar, the largest single government investment of its kind. Last year, Masdar entered into the London Array scheme through a joint venture agreement with E.ON, which currently owns half of the landmark project. DONG Energy owns the other half. Under the agreement, Masdar purchased 40 per cent of E.ON’s half share of the London Array scheme, giving Masdar a 20% stake in the project overall. Masdar, which works with a range of innovative renewable energy companies and utilities, is continuously searching for investment opportunities. The London Array investment is part of Masdar’s global alternative energy strategy which includes solar, wind and other renewable technologies. Masdar last month made a significant investment into the Finnish wind-turbine manufacturer WinWinD Oy, adding to Masdar’s growing portfolio of investments, partnerships and production capabilities in the renewable energy sector.


For more information about the Masdar Initiative, please visit 


This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.

Contact information:

Press Contact:


E.ON: Jonathan Smith T. +44 (0)24 7618 3676 


Dr. Jens Schreiber T. +49 211 4579 544 Masdar: Zarmineh Rab Corporate Communications Manager T. +971 50 450 2315 DONG Energy: Andreas Krog T. +45 9955 2023 


Christian Drepper T. +49 151 163 10889 Kirstin McKellar T. +971 50 4415988 


Jonny Stokes T. +49 151 5504 9402 Laura Misselbrook T. +44 (0) 203 047 2208