PPAs signed for third phase of world’s largest offshore wind farm

Renewables

United Kingdom The joint venture partners co-developing the 3.6GW Dogger Bank Wind Farm in the North Sea, SSE Renewables and Equinor, have announced the signing of 15-year offtake Power Purchase Agreements (PPAs) for the third phase of the world’s largest offshore wind farm.

Dogger Bank Wind Farm will be built over 130 kilometres out to sea off the north-east coast of England, where wind speeds are higher and more consistent than near the coast. Dogger Bank Wind Farm is being built in three 1.2GW phases due to its size and scale: Dogger Bank A, Dogger Bank B, and Dogger Bank C. Each phase is expected to generate around 6TWh of electricity per year, for a total of 18TWh per year across all three phases – enough renewable electricity to meet 5% of UK demand and power six million UK homes.

Dogger Bank will be the world’s largest offshore wind farm once the three phases are completed, which is expected in March 2026.

Power Purchase Agreements for Dogger Bank C

Separate PPAs totaling 1.2GW have been signed for Dogger Bank C with sponsor offtakers Danske Commodities (40 percent share) on behalf of Equinor and SSE Energy Supply Limited (20 percent share) on behalf of SSE Renewables, as well as external offtakers Centrica Energy Marketing and Trading (20 percent share) and Shell Energy Europe Limited (20 percent share). The agreements are subject to Dogger Bank C’s Financial Close, which is expected by the end of 2021.

The agreements to purchase the power generated by the third phase of the wind farm are the result of a competitive bidding process. Danske Commodities will be in charge of trading and balancing 480MW, while Centrica Energy Marketing and Trading, Shell Energy Europe, and SSE Energy Supply will be in charge of 240MW of installed generation capacity across Dogger Bank C.

In the UK Government’s 2019 Contracts for Difference (CfD) auctions, Dogger Bank Wind Farm secured 3.6GW of offshore wind contracts. For a period of 15 years, the CfDs awarded provide overall price certainty to each phase of the Dogger Bank Wind Farm.

The Dogger Bank C offtake PPAs announced have a matching 15-year term from the start of the CfDs awarded to each project. When the third phase of the wind farm goes into commercial operation, the commercial power agreements will allow it to sell the green energy generated by it into the GB electricity market.

Setting world records

The groundbreaking Dogger Bank Wind Farm project is setting world records and pioneering new technology in its execution. It will be the first project to use GE Renewable Energy’s Haliade-X 14 MW offshore wind turbine, the world’s first 14 MW offshore wind turbine, and the first UK High Voltage Direct Current connected wind farm due to its distance from shore.

Onshore construction for Dogger Bank A and Dogger Bank B began in 2020 and is currently underway, with offshore construction on Dogger Bank A set to begin in Q2 2022. First power is expected for Dogger Bank A and B in Summer 2023 and Summer 2024, respectively, with commercial operations starting around 6 months later. The installation of turbines for Dogger Bank C will begin in 2025.

Dogger Bank A and B is a partnership between SSE Renewables (40%), Equinor (40%), and Eni (40%). (20 percent ). SSE Renewables and Equinor, 50:50 joint venture partners in Dogger Bank C, announced in November 2021 that Eni will take a 20% stake in the final phase, with SSE Renewables and Equinor maintaining 40% stakes each, in a deal that is expected to close in Q1 2022. (subject to Dogger Bank C Financial Close and regulatory approvals.)

SSE Renewables is leading the development and construction of Dogger Bank Wind Farm, and Equinor will operate the wind farm after it is completed for an estimated 35-year operational life.

Tagged