RWE, EDF ink 1.4-GW off-take deal for Sofia offshore wind farm

French electric utility EDF SA (EPA:EDF) has clinched a power purchase agreement (PPA) with RWE AG (ETR:RWE) to procure electricity from the German group’s 1.4-GW Sofia offshore wind project in the UK.

The 15-year deal will see EDF buy the entire output of what will be one of the world’s largest offshore wind parks, RWE said on Tuesday. The complex is due to become fully operational in 2026 and is expected to produce around 6.5 TWh of electricity annually, equal to almost half of the power consumption in the North East of England per year.

The PPA is the largest renewable energy deal for both RWE and EDF to date, according to the press release.

The GBP-3-billion (USD 3.98bnbn/EUR 3.52bn) Sofia wind farm will be located 195 kilometres (121.2 miles) off the UK’s North East coast in the shallow area of the central North Sea, known as Dogger Bank. It will be made up of 100 turbines and will be the first project globally to install Siemens Gamesa Renewable Energy SA's 14-MW wind turbine.

Offshore installation works are planned to begin in 2023

Sofia received a development consent order in 2015 and secured a contract for difference (CfD) in 2019 at a strike price of GBP 39.65 per MWh, in 2012 prices. RWE made the financial investment decision in March of this year.

(GBP 1.0 = USD 1.327/EUR 1.173)

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