DNV GL, the world’s largest independent energy advisory and certification body, has successfully completed a lenders’ technical due diligence on the 25-MW Windfloat Atlantic project, the biggest floating wind farm in the Iberian Peninsula.
The project is the first project-financed floating wind farm. The due diligence undertaken by DNV GL was instrumental in helping the project to secure the funding from the European Investment Bank which now has announced its intention to provide a €60 million loan to Portuguese company Windplus.
The project, which is located about 20 km of Costa Viana do Castelo, Portugal is currently under construction and set to become operational in 2019. It consists of an array of three 8.4-MW MHI Vestas turbines, the largest and most powerful wind turbines ever installed onto a floating foundation at sea. Each turbine will operate on a Windfloat floating platform, an innovative design comprising a moored semi-submersible platform.
Working in close collaboration with the company behind the project, Windplus, a subsidiary of EDP Renewables (79.4%), Repsol (19.4%) and Principle Power (1.2%). DNV GL conducted an independent energy yield assessment and undertook a detailed technical due diligence study on all aspects of the floating offshore wind farm with special focus on the risks associated with this new and promising technology.
In its recently published Energy Transition Outlook report DNV GL forecasts that by 2050, 12% of world primary energy supply will come from wind energy, of which 20% will come from offshore wind. In relative terms, offshore wind is growing 85-fold (2050 vs 2016), which is the same growth rate as for Solar PV (also 85-fold). As electricity consumption accelerates, bottom fixed and floating offshore wind farms will play an increasingly important role to ensure that the society can meet this demand.
“Drawing on our extensive floating offshore wind energy technology experience, we identified the key technical and commercial aspects of the project, which allowed the European Investment Bank to have a complete picture of the project and any associated risks and provide financing to it. Windfloat Atlantic is the first floating wind project with project-financing, and an important step towards the bankability of floating wind.” said Prajeev Rasiah, Executive VP for DNV GL’s Energy business in Northern Europe, Middle East & Africa.