Spanish renewable energy company EDP holds a stake of 76.7% in the project named as Moray Offshore Windfarm (Moray East), while Engie holds the remainder 23.3% stake.

The price awarded in the auction held by the UK’s Department for Business, Energy & Industrial Strategy (BEIS) was £57.50/MWh.

EDPR CEO João Manso Neto said: “This auction has demonstrated the real progress in cost reduction and our result shows how affordable offshore wind can be compared to other technologies, including new thermal generation.

“The UK needs more low carbon generating infrastructure to maintain security of supply against an increasingly uncertain future. EDPR has demonstrated what can be done at this site.”

Located off the north-east coast of Scotland, the Moray Offshore Windfarm will feature about 100 wind turbines. Currently, it is in the development phase, with EDP and Engie in the process of selecting partners and suppliers for various construction and operation stages.

Engie UK & Ireland CEO Wilfrid Petrie said that the CfD is a major step in moving the offshore wind project ahead.

Petrie added: “This will be ENGIE’s first offshore wind development in the UK, and complements our growing global offshore wind portfolio with projects in France, Portugal and Belgium, as well as our existing renewables operations in the UK.”

The Moray Offshore Windfarm is expected to be completed and begin commercial operation in 2022. Upon being operational, the offshore wind project is anticipated to meet the power consumption needs of more than 950,000 UK homes.