Of the 4GW of offshore wind, SSE Renewables' share is 2.2GW and the remaining capacity is owned by Norwegian oil and gas giant Equinor
SSE Renewables and its partner Equinor have been selected in the UK’s third Contract for Difference (CfD) Allocation Round for over 4GW of offshore wind projects in the North Sea.
The CfDs have been secured for Dogger Bank Wind Farms and Seagreen Phase 1, which will have a combined capacity of more than 4GW, in which SSE’s share is 2.2GW. The strike prices were £39.65/MWh and £41.61/MWh and are considered to be one of the cheapest rates of electricity generation in the UK.
The projects will now obtain guaranteed revenue for the low carbon electricity they generate for a 15-year period from the 2023/24 or 2024/25 auction delivery year.
The Dogger Bank Wind Farms, which will be located off the North East coast of England, will be owned equally by SSE Renewables and Equinor. They will consist of three projects, Creyke Beck A, Creyke Beck B, and Teesside A.
Dogger Bank Creyke Beck A received a CfD for 1.2GW at a price of £39.65/MWh for delivery in 2023/2024. Dogger Bank Creyke Beck B secured a CfD for 1.2GW at a strike price of £41.61/MWh for delivery in 2024/2025 and the Dogger Bank Teesside A received a CfD for 1.2GW at a strike price of £41.61/MWh for delivery in 2024/2025.
Located in the Firth of Forth off the Scottish coast, Seagreen has a total capacity of 1,075MW across its ‘Alpha’ and ‘Bravo’ projects.
Equinor CEO Eldar Sætre said: “The successful bids for the world’s largest offshore wind development represent a game-changer for our offshore wind business and support the development of Equinor as a broad energy company.
“A full-scale development of Dogger Bank will constitute an industrial wind hub in the heart of the North Sea, playing a major role in the UK’s ambitions for offshore wind and supporting the net zero ambition.
“Excellent wind speeds, shallow waters and scale make Dogger Bank well positioned to deliver low cost renewable electricity to UK homes and businesses.”
Dogger Bank projects are expected to generate more than 5,000GWh of clean energy annually
When complete, the Dogger Bank projects are expected to generate more than 5,000GWh of clean energy annually. With the auction process now complete, SSE Renewables and Equinor will progress towards final investment decisions for all three projects in the latter part of next year.
SSE will lead the development and construction phases of the Dogger Bank wind farm projects and Equinor will lead on operations.
SSE Renewables managing director Jim Smith said: “I’m very proud SSE Renewables has been awarded contracts to deliver new renewable energy from offshore for the UK. These are by far the largest volume of low carbon contracts awarded in this CfD auction round and the biggest ever secured by SSE Renewables, confirming the company’s position as the leading developer and operator of renewable energy across the UK and Ireland.
“Working with our project partners as well as the wider supply chain, we will now turn our focus in the months ahead to mobilising Seagreen and Dogger Bank towards financial close and construction.”