EDF Energy & EDF Energies Nouvelles Announce Joint UK Venture
EDF Energy and EDF Energies Nouvelles announced that they are to create a new joint venture company – EDF Energy Renewables. The new company will be a 50:50 Joint Venture between EDF Energy and EDF Energies Nouvelles with each party combining its renewable energy development skills, expertise, and resources in one place in order to spearhead their renewables development activities in the UK.
The deal formalizes a well established history of cooperation between the two sister EDF Group companies and creates a vehicle for the development, acquisition and operation of renewable energy assets, both on and offshore, in the UK.
The company has ambitions to participate in the UK Government drive to develop increased offshore wind capacity by 2020, and this context welcomes yesterday’s announcement made by the Crown Estate in relation to "Round 3" offshore developments.
EDF Energies Nouvelles is a leading international player in the renewable energy sector and a 50% owned subsidiary of EDF Group, with an overall installed gross capacity of over 2,500 MW worldwide in operation or under construction. It presently has 205 MW in service or under construction in the UK (154 MW net capacity).
EDF Energy owns and operates onshore windfarms in the north east, and has a portfolio of around 120MW of on and offshore wind projects under construction or in advanced development.
Further, in line with its overall renewables strategy, EDF Energy has also entered into Power Purchase Agreements (PPAs) providing approximately 900MW (wind equivalent) of electricity from renewables, thereby supporting the development of capacity by third parties. EDF Energy will also buy, through Power Purchase Agreements, all the electricity produced by assets developed by the Joint Venture.
EDF Energy’s Chief Executive Vincent de Rivaz said, "This deal marks an exciting new phase for EDF Energy in delivering our sustainability and renewables agenda. We are committed to our renewables programme as part a diverse range of energy sources. This diverse mix includes all types of low carbon generation, renewables, clean coal, gas and nuclear, all linked to a strong effort on energy efficiency. When we announced our Climate Commitments on World Environment Day exactly one year ago, we set out our plans to transform our business to help tackle climate change. A key commitment is an investment by 2012 in around 1,000 MW of UK renewable energy production. This is a cornerstone of our commitments and EDF Energy Renewables will be key in helping us to meet this target."
Chief Executive of EDF Energies Nouvelles, David Corchia said, "Over the last three years, we have developed a dynamic partnership with EDF Energy. The creation of this joint-venture is a strong milestone in our relationship with EDF Energy and will enable both companies to build strong positions, creating a major player in the UK’s renewable energy industry."
