The total value of the contract is pegged at €700m and will include the supply, installation of 80 wind turbines besides providing maintenance for a period of ten years.

Each of the turbines will have a capacity of 3.6MW, a rotor diameter of 120 meters and will be erected across a 42km2 area in the German part of the North Sea.

Located 53 km off the coast of Schleswig-Holstein, construction of the project is expected to begin in the first half of 2014.

Siemens Energy CEO Felix Ferlemann remarked that the combined installed capacity for wind power installations worldwide is expected to reach 500GW by 2020.

The European Investment Bank has sanctioned a €450m loan for the project, which is expected to cost €1.4bn in total.

EIB Vice-President with responsibility for lending operations in Germany Wilhelm Molterer noted, "The financing of renewable energy, particularly offshore wind energy projects, is and will continue to be a key part of the EIB’s work, as it is all about meeting Europe’s ambitious environmental targets."

In addition to the EIB loan, the Danish government’s Eksport Kredit Fonden (EKF), Netherlands-based KfW and nine commercial banks will also be involved in financing the wind farm that is expected to commence operations by mid-2015.