Liverpool Bay in Wales will be home to a new offshore wind farm by 2014.

An offshore wind farm in Wales is to be one of the biggest in the world, in a joint venture between RWE Innogy, Stadtwerke München and Siemens.

RWE Innogy, Stadtwerke München (SWM - Munich Municipal Utility) and Siemens will build the offshore wind farm Gwynt y Môr (Welsh for “wind in the sea”) for €2 billion, which will include the connection to the coast.

It will be built with an installed capacity of 576 megawatts in Liverpool Bay, around 18 kilometres off the North Wales coast, and work is due to start towards the end of 2011 to erect the first foundations for a total of 160 wind turbines.

All permits for the wind farm covering an area of 79 square kilometres have already been obtained. Siemens will supply, install and maintain the wind turbines, and provide the connection to the grid.

The Secretary of State for Energy and Climate Change, Chris Huhne, said: “This is the first, of what I hope will be many, examples of how we can make the most of our island’s huge renewable energy potential. I want to make sure we grab all the opportunities the rapidly expanding renewables industry has to offer, and that wind power can come of age under this government.”

RWE Innogy will hold a 60% stake in this joint venture, Stadtwerke München 30% and Siemens 10%. The total investment amounts to more than two billion Euros, including the grid connection to the coast. The investment will be divided between the partners accordingly.

Professor Fritz Vahrenholt, CEO of RWE Innogy, commented: “In 2008 we started making RWE greener. With an output of almost 580 MW and an annual saving in CO2 production of around 1.7 million tonnes, Gwynt y Môr will contribute significantly to this.”

In its first phase of expansion, the wind farm is planned to generate electricity as early as 2013. The project is expected to be completed in 2014. From then onwards it is forecast to generate around 1,950 gigawatt hours of electricity annually, enough to supply around 400,000 British households. The site is in a very favourable location: Liverpool Bay in North Wales is characterised by comparatively shallow water and very high wind speeds.

It is claimed some 1,000 jobs could be created in relation to construction and the supply of components, however some suggest that many of these jobs will go to Dutch and German workers.