EC gives nod to 3.2 GW of offshore wind deals in UK

Jul 24, 2014 - The European Commission (EC) approved the British government’s decision to award early investment contracts to nearly 3.2 GW of offshore wind projects under the Contracts for Difference (CfD) programme.

In June, the UK signed contracts with the developers of eight projects. The list includes several biomass projects and five offshore wind schemes, namely Beatrice Offshore’s 664-MW project, the 258-MW Burbo Bank extension, the 400-MW Dudgeon wind farm, the 1,200-MW Hornsea and the 660-MW Walney Extension offshore wind plans.

In a statement yesterday the EC said that the award of GBP 9.7 billion (USD 16.5bn/EUR 12.3bn) of public support for the five offshore wind schemes is in line with European Union (EU) objectives. “The selection of the projects was done in an open, transparent, competitive and non-discriminatory auction,” the statement said. Once completed, the wind farms will account for 3.3% of the UK’s power generation capacity, the EC noted.

Under the CfD mechanism investors will receive a variable premium over the wholesale electricity price until the total amount reaches the pre-defined "strike prices". Individual projects will receive support for as many as 15 years. In a separate statement on Wednesday, the EC gave the thumbs-up to the CfD support scheme, saying that it meets the EU’s state aid rules for environmental protection and energy.

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