Seagreen Offshore Wind Farm passes major CfD milestone
Updated: 3 days ago
Seagreen Offshore Wind Farm has announced that it has passed the first major CfD milestone with the Low Carbon Contracts Company (LCCC) on its road to becoming fully operational and Scotland’s largest offshore wind farm.
The 1,075MW Seagreen project is located 27km off the coast of Angus in the North Sea. A £3bn joint venture between Total (51%) and SSE Renewables (49%), Seagreen will be Scotland’s largest and deepest offshore wind farm when complete.
The project secured a 15-year CfD contract in 2019, for 454MW. The project reached Final Investment Decision on 3 June 2020 and will built out to 1,075MW capacity (up to 114 turbines).
LCCC’s Milestone Requirement (MR) requires developers whose projects are in receipt of a CfD to demonstrate their commitment to delivering the project by:
incurring actual spend equal to 10% of the expected development and construction costs; or
by evidencing project commitments, including that financing is in place for the project and contracts are entered into for the manufacture and installation of material equipment for the generation and export of electricity.
John Hill, SSE Renewables’ Project Director for Seagreen Offshore Wind Farm, said:
“We’re continuing to make good progress on the development and construction of the Seagreen Offshore Wind Farm, and this confirmation from the LCCC that the project has passed its first CfD milestone requirement demonstrates project delivery is well on-track for our target of becoming fully operational during first half of 2023.”
Neil McDermott, LCCC Chief Executive, said:
“Allocation Round 3 projects faced challenges on an unprecedented scale due to the impacts of a Judicial Review, uncertainty around EU Exit, and the global pandemic. I’m incredibly proud to see these projects pass this important milestone and I commend the determination and teamwork that went into achieving it.
“The projects include some of the world’s largest offshore wind farms to date, so this outcome demonstrates the CfD’s vital role in supporting new low-carbon power projects to secure investment and, ultimately, in developing the ambitious infrastructure we need to power the UK’s transition to Net Zero emissions by 2050.”
Seagreen will provide enough green energy to power more than 1.6 million homes, equivalent to two-thirds of all Scottish homes. Seagreen will displace over 2 million tonnes of carbon dioxide from electricity generated by fossil fuels every year – similar to removing more than a third of all of Scotland’s annual car emissions and making a significant contribution to the Net Zero ambitions of the UK and Scotland.
SSE Renewables is leading the development and construction of the joint venture project, supported by Total, and will operate Seagreen on completion. First power is expected by early 2022 with the offshore wind farm expected to become fully operational during first half of 2023.
Link to LCCC press release for further details.