Wind News

Thursday 11 March 2010

DONG claimed it made a strong move towards green energy production in 2009, with the inauguration of Gunfleet Sands

Danish energy giant DONG Energy has today (March 11) announced it produced 2,810GWh of power from renewables in 2009, making up 16% of its total power production and marking an 8% rise on 2008 figures.

The offshore wind developer's annual report also shows that five new wind parks started production in 2009 - including Horns Rev 2, Gunfleet Sands, Karnice 1, Storrun and Avedøre - and that investment stood at 18 billion Danish kroner (£2.2 billion), with 42% going on renewable generation.

However, DONG has reported a 77% decrease in profit for the year, at 1.1 billion DKK (£134.7 million) compared with 4.8 billion DKK (£587.9 million) in 2008, which the company puts down to the negative impact of the financial crisis and lower energy demand and energy prices.

Commenting on the annual report, a spokesman for the company said: "DONG Energy's activities and financial performance in 2009 were affected by the financial crisis. However, taking a longer-term view, 2009 was also a year of vital strategic decision-making that will ensure that DONG Energy will lead the transition to a greener future."

He added that given the tough market conditions, gross earnings for 2009 are considered to be "satisfactory", standing at 8.8 billion DKK (£1.1. billion) and marking a 35% decrease on 2008 figures.

Figures also show that revenue was down 19% at just under 50 billion DKK (£6.1 billion), which DONG attributed to lower prices, partly offset by higher natural gas production.

DONG had predicted its yearly results for 2009 to be "significantly" down on 2008 after the publication of its half year results in August 2009 (see this NewEnergyFocus.com story).

On a more positive note, the energy giant claimed it made a strong move towards green energy production in 2009, through the following measures:

• Inauguration of wind parks Horns Rev 2 and Gunfleet Sands;
• Final investment decision on Walney 1+2 and London Array;
• Acquisition of a 25% stake in UK wind park Lincs, and divestment of 25% stake in UK wind park Walney;
• Two major turbine sourcing agreements with Siemens Wind Power;
• Discontinuation of coal-fired power stations.

According DONG Energy, it currently holds a 33% share of the European offshore market. Part of this is made up of its 50% stake in the 1GW London Array offshore wind development, which moved a step forward last month (February 4) with the awarding of contracts to supply marine crew and vessels for the installation of foundations and turbines at the site off the coasts of Kent and Essex (see this NewEnergyFocus.com story).

DONG claimed that gross earnings would be "significantly" higher in 2010.