UK Prime Minister Rishi Sunak expressed enthusiasm over the £11 billion (US$13.9 billion) investment agreement between Germany’s RWE and the United Arab Emirates’ state-owned renewables company Masdar. The announcement was made during Sunak’s 11-hour visit to Dubai for the COP28 conference on December 1. This joint venture, aiming to develop the world’s largest wind farm, is considered a significant boost to the offshore wind sector and is viewed as a vote of confidence from global investors during a crucial time.
The agreement, signed on the sidelines of COP28, outlines that Masdar will acquire a 49 percent stake in RWE’s expansive 3 GW Dogger Bank South projects. The joint investment of £11 billion in the UK’s renewable energy sector underscores a commitment to advancing clean energy initiatives. RWE will retain a majority stake of 51 percent and will oversee the project’s development.
Sunak, addressing reporters at a press conference during COP28, hailed the agreement as a “huge boost for UK renewables.” Despite the UK’s leadership in Europe for offshore wind energy, questions arose regarding the government’s commitment to renewable energy following Prime Minister Sunak’s announcement of plans to maximize the country’s oil and gas reserves in the North Sea. The UK, once a global leader in offshore wind, had faced setbacks, including a failed auction in September 2023, attributed to rising costs and financial pressures. However, in November, the government announced plans to reset pricing significantly higher for the next round of auctions in 2024.
The collaboration with Masdar represents a pivotal moment for the UK’s offshore wind sector. HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President, emphasized the significance of such projects in meeting climate goals. He stated, “Projects such as Dogger Bank South show how nations, companies, and communities can join forces to deliver powerful solutions.”
The International Renewable Energy Agency projects that offshore wind energy could generate 380 GW by 2030 with increased investment and accelerated permitting protocols. The UK, with approximately 14 GW of installed capacity, aims to reach 50 GW by 2030.
RWE’s Dogger Bank South project, located more than 60 miles off the northeastern coast of England, is split into two sites, each with a capacity for 1.5 GW. Masdar’s involvement comes at a crucial stage, as stakeholders’ consultations near completion, and project plans are set to be submitted in the second quarter of 2024. Construction is anticipated to commence in 2025, with the first 800 MW planned to be online in 2029, and full commissioning by late 2031.
The partnership between RWE and Masdar extends beyond this project, reflecting their active collaboration in global offshore wind initiatives. Their joint efforts aim to explore and develop offshore wind projects both in and outside Germany. Masdar, with prior investments in the UK’s 630 MW London Array and other projects, continues to play a significant role in the offshore wind sector.
Dogger Bank, already home to a large wind farm developed by SSE Renewables in collaboration with Equinor and Vargrønn, is positioned as a key hub for renewable energy. The wind farm, led by SSE Renewables, is well underway, with the first turbines becoming operational in October 2023. The Dogger Bank A project, part of the overall plan for 3.66 GW, features GE Vernova’s Haliade-X 13 MW turbines, emphasizing its potential as one of the most powerful wind farms globally.