SSE's Seagreen offshore wind project gets CfD for 42% of planned capacity

SSE Renewables, part of UK utility SSE plc (LON:SSE), has secured a contract for difference (CfD) for 454 MW at a Scottish offshore wind farm project.

The Seagreen Phase 1 park is planned for the Firth of Forth off the Scottish coast. The total capacity is 1,075 MW, with an estimated output of 5,000 GWh per year.

The project has been awarded a 15-year CfD for 42% of the capacity at GBP 41.61 (USD 52/EUR 47) per MWh in 2012 prices. Completion is planned for delivery year 2024/25.

The scheme, at an advanced stage of development, will contribute over GBP 2 billion to the UK economy, half of which in Scotland. “Plans are in place to progress financing and an equity stake sell-down to move towards a final investment decision in 2020,” SSE said.

The company was also successful in the CfD allocation round with 3,600 MW of Dogger Bank projects, which it is developing together with Norway’s Equinor ASA (NYSE:EQNR). At the same time, however, it failed to secure a contract for 457-MW Viking Wind Farm, an onshore wind project on Shetland. The scheme is being developed by a 50/50 joint venture between the company and the Shetland community.

“VES [Viking Energy Shetland] is very disappointed with the outcome of the CfD auction but remains committed to the project and will continue to work with VEWF to explore all possible options to enable the wind farm to be built,” the developer of the project said today.

(GBP 1 = USD 1.25/EUR 1.13)

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