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Wind turbines of the Arkona offshore wind farm in the Baltic Sea; Wind turbines of the Arkona offshore wind farm in the Baltic Sea;

Arkona Offshore Wind Farm due diligence, Baltic Sea

Advisory work supports stake purchase in the largest offshore wind farm in the Baltic Sea

With 60 6MW wind turbines Germany’s Arkona is the largest offshore wind farm in the Baltic Sea to date. Located about 35 km northeast of the German island of Rügen, the Arkona wind farm was successfully put into operation in spring 2019. It supplies around 440,000 German households with renewable energy. 

The wind farm was developed as a 50/50 joint venture between German energy supplier RWE Renewables (after the acquisition of E.ON Climate & Renewables) and Norwegian energy company Equinor. A few months after its successful commissioning, Equinor announced that it would sell a 25% stake in the company – about half of their shares - through a public tender.

Arup was commissioned by the subsequent buyer, Credit Suisse Energy Infrastructure Partners (CSEIP), to conduct a comprehensive technical due diligence.

Project Summary

378MW total capacity

25%stake purchase

500m €transaction volume

Evaluating risk: multidisciplinary expert support

According to the International Energy Agency, offshore wind is set for robust growth in the EU, with current policies aiming to multiply offshore wind capacity by over 4 times over the next decade.

We carried out a thorough potential risk assessment of the offshore wind farm, including the technical and financial implications, while recommending suitable solutions to minimise risk. In addition to the structural and technical installations, we also assessed the approval, grid connection, environmental and safety requirements and the current return on investment plans. Among the risks identified was the very short service contract with the turbine manufacturer. As part of our work to de-risk operations and ensure business continuity, we advised the buyer to devise a new service contract and strategy, extending the current coverage to safeguard operations.

Backing solid investment decisions

Our multidisciplinary team of experts carried out an extensive Operating Expenses (OpEx) benchmarking, comparing the offshore wind farm operator’s business plan with comparable assets. This enabled our team to expand the cost planning for operation and maintenance, including the cost planning for the replacement of the main turbine components.

Our detailed due diligence has enabled our client to lock in value through this stake acquisition; while providing a detailed overview of the technical equipment that can be used as a base for future improvements in the wind farm’s O&M operations. ” Portrait of Dimitrios Klavdianos Dimitrios Klavdianos Senior Project Manager at Arup Germany

Multidisciplinary expertise for offshore wind farms

Technical due diligence studies are a multidisciplinary challenge that requires in-depth expertise. Our integrated team of experts included a combination of wind energy specialists working with electrical, shipbuilding and health & safety engineers, as well as meteorologists and oceanographers working hand in hand with economists, tax consultants and lawyers – a total of ten experts from our offices in Berlin, London, Amsterdam and Edinburgh.

Find out more about our work in offshore wind and renewable energy