Vattenfall shows Czech utility ČEZ the way, acquires Global Tech II project

Swedish energy company Vattenfall last week announced that it had acquired plans to build the Global Tech II offshore wind farm, which is set to have an installed capacity of 553 MW. Czech energy company ČEZ has similar plans in the renewable energy sector.

Like other major European energy companies, Vattenfall has recently been focusing more on renewable energy sources. One way of increasing its presence in this area is by acquiring projects under development, as the company confirmed with its acquisition of the Global Tech II wind farm.

Once completed, Global Tech II is expected to have an installed capacity of 553 MW across a total of 79 offshore wind turbines (7 MW each). The wind park is expected to cover an area of around 47 km².

„The acquisition once again demonstrates that our plans in the wind power sector and their implementation are well under way. As a company, we are on the right path towards transforming our generation portfolio towards renewable energy sources.“

Gunnar Groebler, Vattenfall

The wind park is located in German territory, and its completion therefore depends on whether it secures support for electricity generation in auctions planned for March 2017 and 2018.

Nevertheless, according to Vattenfall's head of wind power, the acquisition of Global Tech II signals that the company has confidence in Germany's newly established auction system. The new system is primarily intended to reduce the level of support for power plants and grant support only to projects that offer the lowest price in the auction.

ČEZ also targets wind power in Germany

Czech energy company ČEZ has similar acquisition plans and at the start of this year announced cooperation with Aquila Capital. The company is to select suitable projects for ČEZ to invest in, particularly wind power projects.

For ČEZ, however, priority is given to projects that have already been completed or have already secured approved support. In general, however, projects of this type are of interest to many investors.

ČEZ plans to invest up to CZK 60bn in renewable energy sources, with Germany, France and the United Kingdom expected to be its main target markets.