Mainstream Renewable Power has agreed to sell its remaining stake in the SMart Wind offshore wind consortium to DONG Energy.
SMart Wind is a joint venture between Mainstream and Siemens Financial Services, which was formed in 2009 to successfully bid for and then to develop the 4,000-megawatt Hornsea Offshore Wind Zone in the UK North Sea as part of government’s licensing round for large-scale offshore wind projects. The project could cost US$19 billion if developed fully.
Financial details of the agreement were not disclosed. DONG Energy bought the first phase of the Hornsea Zone in February 2015 from Mainstream and Siemens Financial Services. At 1,200MW, it is one of the world’s largest fully consented offshore wind farms. DONG will continue the development of the remainder of the zone.
According to Bloomberg New Energy Finance, offshore wind is one of the most expensive renewable energy technologies, costing about US$176 a megawatt-hour compared with an average US$72 for coal.