Seagreen Success in CfD Auction
Updated: Jun 28, 2022
We are delighted to announce that our Phase 1 offshore wind project has been successful in the latest UK Government Contract for Difference (CfD) auction for low carbon power.
Located 27km off the Angus Coast in the Firth of Forth, the project has been successful in securing a 15-year contract for 454MW at a strike price of £41.61/MWh in auction delivery year 2024/25. The CfD contract represents 42% of the total project capacity although SSE Renewables is planning to build out the project to 1,075MW capacity.
Jim Smith, Managing Director of SSE Renewables, said: “We are extremely pleased that Seagreen Phase 1 has been successful in securing a 15-year CfD in a highly competitive auction. The strike price of £41.61/MWh is a great outcome for UK customers and shows that offshore wind is now one of the most affordable forms of renewable power.
“It demonstrates the quality of SSE Renewables’ expertise in the development of renewables and offshore wind in particular. Our experience in construction and operation will be a key strength as we move forward with Seagreen.
“SSE Renewables believes offshore wind is the foundation of a zero-carbon world in the UK and Ireland, and we are delighted that Seagreen will be providing clean, renewable electricity needed to meet both the UK and Scotland’s ambitions carbon reduction targets. It’s estimated that Seagreen will contribute over £2 billion to the UK economy, of which £1 billion will be in Scotland, and we are committed to maximising the socio-economic benefits created by the project.”
Seagreen will be Scotland’s largest ever offshore wind farm and represents one of the most significant construction projects ever undertaken in Scotland.
The project will support a significant number of jobs in Scotland during construction and several hundred annually throughout the lifetime of the project.
As well as bringing extensive economic benefits to the local, Scottish and UK economies, the project will also provide enough power for around 1.2 million homes and would avoid around 2 million tonnes of CO2 emissions per year.
The project is at an advanced stage of development and securing a CfD is another significant milestone. Plans are in place to progress financing and an equity stake sell-down to move towards a final investment decision in 2020.