PPAs clinched for 3rd phase of Dogger Bank offshore wind project
General Electric’s Haliade-X turbine. Source: Dogger Bank Wind Farm.
SSE Renewables, part of UK utility SSE Plc (LON:SSE), and Norway’s Equinor ASA (NYSE:EQNR) announced on Thursday that they have secured 15-year power purchase agreements (PPAs) for the third phase of the 3.6-GW Dogger Bank offshore wind complex that they are co-developing in the British North Sea.
The separate off-take agreements cover 1.2 GW, or a third of the total production capacity of the complex. Danish energy trader Danske Commodities, a subsidiary of Equinor, will trade and balance 40% of the output of Dogger Bank C. Its contract covers 480MW of the overall production capacity. The second sponsor off-taker, SSE Energy Supply Ltd, will trade and balance 20% of the electricity on behalf of SSE Renewables, which represents 240 MW of the installed generation capacity.
The remaining 40% of the output will be divided equally between two external off-takers, Centrica Energy Marketing and Trading, part of British energy group Centrica Plc (LON:CNA), and Shell Energy Europe Limited. Each of these two companies will have responsibility for marketing the output coming from 240 MW of installed capacity.
The agreements are subject to financial close on Dogger Bank C and were inked after a competitive bidding process.
"Concluding offtake power purchase agreements with some of the leading energy trading companies for Dogger Bank C means we are well on track to reach financial close for the third phase of Dogger Bank Wind Farm by the end of the year," SSE Renewables project director Steve Wilson said.
The wind farm complex won 15-year contracts under the UK government’s Contracts for Difference (CfD) scheme in 2019. The latest PPAs cover a matching term from the start of the CfD award for each stage. PPAs for Dogger Bank A and B were inked in November 2020.
Dogger Bank is being built in three phases of 1.2 GW each. The first two phases are a joint venture between SSE Renewables and Equinor each with 40%, and Eni (BIT:ENI) with 20%. In early November, Eni struck a deal to buy a holding of the same size in Dogger Bank C.