Denmark's DONG Buys German Wind Power Projects

Denmark's DONG Energy has bought three German North Sea wind power projects with a total planned generating capacity of 900 megawatts from PNE Wind for up to €157 million ($194 million), DONG said.

The deal gives a substantial increase to the state-owned oil, gas and power producer's wind power portfolio, which consists of 1,035 MW of onshore and offshore wind parks in operation and about 2,000 MW under construction in Denmark, Germany and the UK.

DONG Energy wants to have at least 3,000 MW of wind power capacity by 2020.

The purchase price consists of an immediate payment of €57 million and deferred payments of up to €100 million subject to certain conditions, including a final investment decision to construct the wind farms, DONG said on Tuesday.

If it goes ahead with the Gode Wind 1, 2, and 3 projects situated northwest of the island of Norderney construction could begin by 2015, DONG Energy said in a statement.

"The acquisition of the Gode Wind 1, 2, and 3 projects is a significant step in DONG Energy's effort to gain a stronger position in the growing German offshore wind sector," it said.

Gode Wind 1 and 2 have permits from the German authorities for construction and operation, though some changes to the permits will be needed to use the total capacity, DONG said.

Completion of the Gode Wind 3 deal depends upon the relevant permits being obtained by the end of January 2014, it added.