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Friday 20 September, 2019

SSE Plc

CFD Allocation - Dogger Bank Wind Farm Results

RNS Number : 0936N
SSE PLC
20 September 2019
 

SSE plc

UK Contracts for Difference Allocation Round 3 - Dogger Bank Wind Farm Results

20 September 2019

 

Dogger Bank Wind Farms, in which SSE Renewables has a 50% stake as part of a joint venture (JV) with Equinor, has today, 20 September 2019, been informed that it has been successful in the UK's third Contract for Difference (CfD) Allocation Round and is set to be awarded contracts totalling 3,600MW.

Under the CfDs, the following projects will receive guaranteed remuneration for 15 years for the low carbon electricity they generate. Outside the 15-year period, the projects will be important assets with significant earnings capacity.

·    Dogger Bank Creyke Beck A has been awarded a CfD for 1,200MW at a strike price of £39.65/MWh (in 2012 prices) for delivery in 2023/2024  

·    Dogger Bank Creyke Beck B has been awarded a CfD for 1,200MW at a strike price of £41.61/MWh (in 2012 prices) for delivery in 2024/2025

·    Dogger Bank Teesside A has been awarded a CfD for 1,200MW at a strike price of £41.61/MWh (in 2012 prices) for delivery in 2024/2025

The successful Dogger Bank projects are each expected to generate over 5,000GWh annually. Following the outcome in the auction, SSE Renewables (with its JV partner Equinor) will now progress towards a final investment decision for the Dogger Bank projects by late 2020.

SSE Renewables will lead the development and construction phases of the Dogger Bank Wind Farm projects and Equinor will lead on operations.

Today's result enhances SSE Renewables' position as the leading renewable energy company across the UK and Ireland. Once complete, Dogger Bank Wind Farms will add to SSE Renewables' operational joint venture portfolio of offshore wind assets - alongside Greater Gabbard, Beatrice, and Walney. The projects fit strongly with the Group's broader strategy to create value for shareholders and society from developing, owning and operating energy and related infrastructure and services in a sustainable way, with regulated energy networks and renewable energy at its core. 

Jim Smith, Managing Director of SSE Renewables, said: "We are thrilled at the success of our offshore wind projects at Dogger Bank which will be one of the largest wind farms in the world. Reaching this point has been a culmination of over 10 years of development and it is very exciting to work with Equinor on taking the project forward. We're confident our wealth of offshore wind experience will enable us to deliver these unique projects.

 

"This success demonstrates that offshore wind is the key technology to enable the UK to become carbon neutral by 2050 in the most cost-effective way, whilst also delivering significant economic benefit across the UK".

 

SSE Renewables acknowledges that an application has been made by a third party against the Department for Business, Energy and Industrial Strategy (BEIS) for a judicial review in relation to the CfD auction process. BEIS has publicly stated that it will defend the claim. SSE Renewables continues to monitor the situation closely.

SSE Renewables' operational and consented offshore portfolio consists of:

OFFSHORE WIND FARM

CAPACITY

SSE RENEWABLES SHARE

STATUS

United Kingdom

Walney

367MW

25%

Operational

Greater Gabbard

504MW

50%

Operational

(Operated by SSE Renewables)

Beatrice

588MW

40%

Operational

(Operated by SSE Renewables)

Seagreen Phase 1

1,075 MW

100%

CfD secured for 454MW

Consented

Dogger Bank Creyke Beck A

1,200MW

50%

CfD secured for 1,200MW

Consented

Dogger Bank Creyke Beck B

1,200MW

50%

CfD secured for 1,200MW

 

Consented

Dogger Bank Teesside A

1,200MW

50%

CfD secured for 1,200MW

Consented

Ireland

Arklow Bank

800MW

100%

Consented

 

Enquiries 

Investors and Analysts

[email protected]

+44 (0)345 0760 530 

Media

[email protected]

+44 (0)345 0760 530

 


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