EU Commission approves new joint venture for Belgian offshore wind projects

The European Commission has approved, under the EU Merger Regulation, the restructuring of two offshore wind projects located in Belgian waters, known as Seastar and Mermaid. The proposed transaction entails the creation of a joint venture between Otary RS NV, Eneco, through Eneco Wind Belgium N.V., and Engie, through Electrabel NV.

Otary is a consortium of eight Belgian players in the offshore wind industry - Aspiravi, Deme, Elicio, Green Offshore, Power@Sea, Socofe, SRIW and Z-Kracht - set up to develop these projects and the 309 MW Rentel wind farm currently in construction.

The Commission received  notification of the proposed joint venture on 1 June 2018 and concluded that the proposed transaction would raise no competition concerns in particular because of the pre-existing ownership rights of the companies over the Seastar and Mermaid wind farm concessions and the existence of other similar projects either under development or for which new concessions have been announced.

The Commission's announcement does not disclose the agreed shareholding of the new joint venture, and neither Otary, Eneco nor Engie have announced the transaction themselves, meaning it is not known how much interest either of the two new stakeholders are purchasing in the projects.

Siemens Gamesa was selected to supply 58 turbines for the two wind farms in March this year.