Dogger Bank Wind Farm Challenges UK Approval of Nearby RWE Site
(Bloomberg) The owners of the world’s biggest offshore wind farm petitioned a UK judge to challenge the government’s decision to approve the development of another major project nearby, potentially throwing the new one into doubt.
SSE Plc, Equinor ASA and Vargronn, the owners of the Dogger Bank Wind Farm off England’s east coast, filed a judicial review claim against the decision in May to allow RWE AG and Masdar to build the Dogger Bank South project, according to people familiar with the matter, who asked not to be identified as the details aren’t public. The filing was made in late June, one of the people said.
The existing project’s owners previously raised concerns that more turbines in that area could block wind and make ones already there less profitable. It highlights one of the numerous challenges faced by the sector, which has struggled with bigger costs and supply-chain snarls, as it shifts from a frontier technology to key source of power in Europe. For RWE and Masdar, the judicial review raises uncertainty about the future of one of their largest projects.
A spokesperson for Dogger Bank South confirmed that a judicial review challenge against the consent process had been lodged. A spokesperson for RWE said that the new farm’s consent was awarded following a rigorous, transparent examination and that the company remains focused on delivering the project.
A spokesperson for the Dogger Bank Wind Farm said they can’t comment on a matter before the courts. A spokesperson for the Department for Energy Security and Net Zero didn’t comment on the judicial review.
The existing 3.6-gigawatt Dogger Bank Wind Farm is nearing completion of its first phase. Its owners raised concerns during the consenting process for new projects over the so-called wake effect, where one project essentially serves to block wind from another one nearby.
‘Wake Effect’
The phenomenon can also been seen even within a single wind farm: The first turbine gets the strongest wind and the best production, while the ones behind it see slightly lower wind speeds. Extrapolated over a project’s lifetime, the loss of wind and revenues can be significant.
Companies have flagged the potential impact of turbine wakes for years, but the stakes are particularly high right now for farms that require billions of dollars of investment at a time when margins are being squeezed. Last year, German authorities cut the capacity available for leasing by 20% amid concerns about crowded seas.
Under UK law, after a complaint is raised, a judge will decide whether or not to grant permission to proceed with a case. If the case does go ahead, evidence and legal arguments will be made in court and a judge will decide whether or not the government was wrong to grant consent to the wind farms.
It’s unclear at this stage whether the legal process will go ahead and if it does, how long it would take. If it were to drag into next year, it could leave RWE and Abu Dhabi’s Masdar facing hundreds of millions of pounds for seabed fees to the Crown Estate during the prolonged development phase.
Judicial reviews are one of a variety of measures that the UK government has sought to reform to speed up new infrastructure projects. A bill passed last year limited the use of judicial reviews to prevent projects from being tied up in the courts for extended periods of time.
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