RPT-UPDATE 1-E.ON, DONG, Masdar sign London Array wind deal

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LONDON Dec 14 (Reuters) - Germany's E.ON (EONGn.DE) Denmark's state-owned group DONG Energy [DONG.UL] and Masdar said on Monday they had signed contracts worth nearly 2 billion euros for work on London Array offshore wind project.

Masdar is an Abu Dhabi green energy investment firm.

The companies said in a statement work for first phase of the project, which would provide 630 megawatts, would start early in 2011 and complete by the end of 2012.

In May, the consortium said it would invest 2.2 billion euros ($3.23 billion) for the first phase of the world's largest offshore wind farm project, giving a boost to the UK plan to build up massive offshore wind farms to meet its carbon reduction target. [ID:nLC790566]

It came after the government increased support for offshore wind farms under the Renewable Obligations Certificate (ROC) scheme.

The project for the 1,000 megawatt wind farm in the Thames Estuary near London had been threatened by falling UK power prices, the weakening pound and rising costs for credit as results of the global financial crisis.

The group said in a statement the contracts consisted of six major supply and installation contracts, with the largest contract worth about one billion euros going to Siemens Wind Power (SIEGn.DE) which would supply 175 turbines.

Other contractors include a joint venture between Per Aarsleff A/S and Bilfinger Berger Ingenieurbau GmbH BGFG.DE, Future Energy -- a venture between Fabricom, Iemants and Geosea -- Nexans Norway AS (NEXS.PA), JDR Cable Systems, Visser & Smit Marine Contracting, Global Marine Systems Ltd and Siemens Transmission and Distribution Ltd.

The farm, to be built in the Thames Estuary around 20 km off the coasts of Kent and Essex, and will have capacity to power around 750,000 homes or a quarter of Greater London homes.

(Reporting by Nao Nakanishi; Editing by Keiron Henderson)