Iberdrola and Kansai Electric Collaborate for German Offshore Wind Energy

Spain’s Iberdrola and Japan’s Kansai Electric Power look to expand their collaboration to grow both companies' participation in renewable energy. As a next step, the companies reported an agreement for Kansai to acquire 49 percent of an under-construction offshore wind farm in Germany. It marks Kansai’s entry into the German offshore market as it looks to grow its wind and renewable energy portfolio.

Terms of the sale of the 49 percent share were not announced but Iberdrola reported the operation values the wind farm known as Windanker at €1.28 billion. It said it implies a multiple of €4.1 million per MW and 13.5 times EBITDA. The wind farm is scheduled to have a generation capacity of 315 MW implying Kansai’s share represents 105 MW.

Construction on the wind farm which is Iberdrola’s third in the North Sea is underway scheduled for completion in 2026. It is located near the eastern border of Germany with Poland and just over 20 miles offshore to the north. It will consist of 21 15 MW turbines.

Iberdrola highlights it is part of a continuing strategy of partnership as the company looks to double its offshore wind energy capacity. It currently has 2,400 MW installed and expects to reach 4,800 MW by 2026. It currently has four offshore wind farms in operation in Germany, France, and the UK. 

"This operation will allow us to accelerate our growth in offshore wind with a strategic partner like Kansai. The Windanker wind farm, whose energy is already sold to industrial customers on a long-term basis, demonstrates the potential of renewables to promote the industrialization of Europe with indigenous, clean, and competitive energy," said Iberdrola's president, Ignacio Galán.

Kansai reports that it aims to collaborate with Iberdrola on overseas projects including renewable energy. The company, which is Japan’s second-largest electric utility and a top nuclear power operator as well as a gas and communications company, highlights that this will be its fifth overseas wind part participation.

With this investment, Kansai reports it will exceed 3 GW of net energy capacity from overseas generation investments. It looks to leverage the expertise from the international market to expand offshore wind projects in Japan’s emerging market.