EDP Renewables, (EDPR) and ENGIE have announced that the Moray Offshore Wind farm (East), a joint venture company currently owned by EDPR (77%) and ENGIE (23%), has been awarded a 15-year Contract for Difference (CfD) for the delivery of 950-MW of offshore wind generation at £57.50/MWh ($75.79 USD/MWh).
The contract was awarded by the UK’s Department for Business, Energy & Industrial Strategy (BEIS) following its latest CfD auction.
“With this announcement, EDP Renewables increases its growth options in offshore wind in an attractive market, thereby enhancing and diversifying the company’s long-term profitable growth options while maintaining a balanced risk profile,” said, João Manso Neto, CEO of EDPR.
EDPR and ENGIE are jointly developing the project, which is located off the north-east coast of Scotland. Upon conclusion of the development phase and the selection of all partners and suppliers for the different stages of construction and operation, the project would then move towards the construction phase. Completion and the commencement of the commercial operation is expected in 2022.
EDPR’s sustained commitment to the UK offshore wind market through Electricity Market Reform and the transition to CfD auctions has enabled dramatic cost reduction from £150/MWh ($197.72 USD/MWh) in 2014 to £57.50/MWh ($75.79 USD/MWh).
“This auction has demonstrated the real progress in cost reduction and our result shows how affordable offshore wind can be compared to other technologies, including new thermal generation,” Manso Neto added. “The UK needs more low carbon generating infrastructure to maintain the security of supply for an increasingly uncertain future. EDPR has demonstrated what can be done at this site. It is in the UK’s interests to enable us to continue this achievement at other sites.”
“Moray East’s success in this auction will enable us to bring a high-quality, high-value offshore wind project to the UK, and I would like to thank all of the organizations, individuals, and communities with an interest in the Moray Firth with whom we have worked to reach this vital milestone,” stated Dan Finch, Managing Director of Moray Offshore Renewables.
Finch added: “Moray East also brings major economic opportunities to our supply chain. Innovation and co-operation have enabled the cost reduction which ensured success in this auction. Electricity from Moray East will be produced at the lowest cost of any offshore wind farm around the UK, with exceptional benefits to consumers.”
Filed Under: News, Offshore wind, Projects