September 20 (Renewables Now) - UK utility SSE plc (LON:SSE) and Norway’s Equinor ASA (NYSE:EQNR) today confirmed the award of contracts for difference (CfDs) to 3.6 GW of offshore wind capacity in the North Sea, which the two will build in a 50/50 joint venture.
The Dogger Bank Creyke Beck A & B projects, and the Dogger Bank Teesside A scheme have been successful in the third CfD allocation round in the UK, the results of which were announced this morning. Each of these project phases will have a capacity of 1.2 GW. The strike price for Dogger Bank Creyke Beck A is GBP 39.65 (USD 50/EUR 44.8) per MWh in 2012 prices, while for the other two schemes it will be GBP 41.61/MWh, again in 2012 prices.
The Dogger Bank projects require a total capital investment of about GBP 9 billion between 2020 and 2026. A final investment decision (FID) is now expected by late 2020 and first power is targeted in 2023.
Under the JV, SSE Renewables will be in charge of the development and construction phases, while Equinor will lead on operations. The duo will be seeking non-recourse project financing for the project. Equinor said a preliminary market sounding of potential lenders showed there is very strong interest for UK offshore wind assets.
"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," commented Equinor CEO Eldar Saetre.
More phases of the Dogger Bank project are to be developed in the future.