EDP Renováveis and ENGIE consortium is awarded longterm CfD for 950 MW offshore wind project in UK

EDP Renováveis, S.A. (“EDPR”) and ENGIE are pleased to announce that Moray Offshore Windfarm (East) Limited, 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 (in real 2012 terms).

The contract was awarded by the UK’s Department for Business, Energy & Industrial Strategy (“BEIS”) following its latest CfD auction.

EDPR and ENGIE are jointly developing this 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 commercial operation is expected in 2022.

João Manso Neto, CEO of EDPR said:

“With today’s announcement EDPR 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.

“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 in 2014 to £57.50 /MWh today. 

“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. The UK needs more low carbon generating infrastructure to maintain security of supply against 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”

Wilfrid Petrie, CEO for ENGIE in the UK & Ireland, said:

“We are delighted that the Moray East offshore wind farm has received this CfD, which is an important step in taking this project forward. This will be ENGIE’s first offshore wind development in the UK, and complements our growing global offshore wind portfolio with projects in France, Portugal and Belgium, as well as our existing renewables operations in the UK.

“ENGIE is committed to investing in sustainable energy solutions and innovative services in the UK, including renewable energy generation. Moray East will make a significant contribution towards helping the UK meet its decarbonisation targets and it will also support ENGIE’s ambition for 25% of its global energy portfolio to be renewable by 2020.”

Dan Finch, Managing Director of Moray Offshore Renewables, said:

“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 organisations, individuals and communities with an interest in the Moray Firth with whom we have worked to reach this vital milestone.

“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.”

 

*https://www.gov.uk/government/collections/electricity-market-reform-contracts-for-difference

To view or download a copy of the press release, click here.