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Power Purchase Agreements signed for Dogger Bank A and B

24th November 2020 in Press releases, Project news

24 November 2020: SSE Renewables and Equinor, the joint venture partners co-developing the 3.6GW Dogger Bank Wind Farm in the North Sea, have announced today that 15-year offtake Power Purchase Agreements (PPAs) have been signed for the first two phases of the world’s largest offshore wind farm.

Separate PPAs for a total of 2.4GW across both Dogger Bank Wind Farm A and B have been concluded with external offtakers Ørsted (40% share) and Shell Energy Europe Limited (20% share), and with sponsor offtakers Danske Commodities (20% share) on behalf of Equinor and SSE Energy Supply Limited (20% share) on behalf of SSE Renewables. The agreements are subject to Financial Close on Dogger Bank A and Dogger Bank B, which is expected shortly.

The deals to buy the power generated by the first two phases of the wind farm follow the conclusion of a competitive bidding process. Taken together they represent the largest set of PPAs completed to date in a tender process for a renewable energy project in the UK energy market.

Ørsted will have trading and balancing responsibility for 960MW while Shell Energy Europe, SSE Energy Supply and Danske Commodities will have responsibility for 480MW each of installed generation capacity across Dogger Bank A and B.

Steve Wilson, Dogger Bank Wind Farm’s Project Director at SSE Renewables, said:

“Today’s announcement that we have concluded offtake Power Purchase Agreements for Dogger Bank A and B marks one of our final milestones ahead of reaching financial close soon for what will be the world’s biggest offshore wind farm. These agreements with leading energy trading companies will ensure the renewable energy generated by the first two phases of Dogger Bank Wind Farm can be sold into the GB electricity market, delivering on our promise to power millions of British households with green energy.”

Halfdan Brustad, vice president for Dogger Bank at Equinor, said:

“We are delighted to announce offtake agreements for Dogger Bank A and B. Despite the current global challenges, the project is really moving forwards and this tangible milestone brings us one step closer to Financial Close. Large-scale renewable energy projects like Dogger Bank are not only crucial for the UK to reach its net zero ambitions, the project will bring many economic benefits to the UK in terms of jobs and supply chain opportunities. We are proud to be contributing to a just energy transition and supporting the Government’s 10 point plan for a green industrial future.” 

Morten Buchgreitz, Executive Vice President and CEO of Ørsted Markets & Bioenergy, said:

“We’re very pleased with the signing of this agreement which underlines our position as a leading energy trading company in the UK. Handling a 15-year trading agreement with the Dogger Bank Wind Farm is indeed in line with our vision to create a world that runs entirely on green energy. We’re very much looking forward to our cooperation.”

Rupen Tanna, general manager for power at Shell Energy Europe, said:

“We are proud to support the world’s largest offshore wind farm through a long-term agreement that will help us to meet the evolving energy needs of our customers. As the UK Government underscored earlier this month, offshore wind will play a key role in the UK’s transition to a low-carbon future.”

Tor Mosegaard, Danske Commodities’ VP, Head of European Power Trading, said:

“The Dogger Bank PPA is a great addition to our long-term portfolio and it shows our commitment to British renewables. Danske Commodities has traded power in the UK for more than ten years and we see PPAs as a crucial part of ensuring the continued development of renewables. As Equinor’s power trading arm and route-to-market for renewable power production, we help turn green ambitions into an economically viable business – one wind farm at a time.”

Gordon Bell, Commercial Director of Energy Portfolio Management for SSE Energy Supply, said:

We are delighted to secure this PPA for Dogger Bank, bringing green energy from the world’s largest offshore wind farm to customers across the UK, while supporting SSE’s ambition to treble its renewable electricity output by 2030. The renewable energy produced by Dogger Bank will play a key role in greening the UK’s electricity generation and driving the transition to a net-zero future.”

Dogger Bank Wind Farm is a joint venture between SSE Renewables, who are leading the construction of the offshore wind farm, and Equinor, who will operate the 3.6GW project during its lifetime of at least 25-years. When completed, Dogger Bank will be the world’s largest offshore wind farm.

Due to its size and scale, the overall wind farm is being built in three consecutive 1.2GW phases; Dogger Bank A, Dogger Bank B and Dogger Bank C. Each project is expected to generate around 6TWh of electricity annually.

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

The offtake PPAs being announced today for Dogger Bank A and Dogger Bank B cover a matching 15-year term from the start of the CfDs awarded to each project. The commercial power agreements provide a route to sell the green energy generated by both wind farms into the GB electricity market when they each enter operation.

Dogger Bank Wind Farm is located over 130km off England’s north-east coast and will be capable of powering up to 4.5 UK million homes each year when complete in 2026.

Ends

For further information:

Media contact – Dogger Bank Wind Farm:

Jason Cooke, SSE Renewables

jason.cooke@sse.com

+353 (0) 86 264 6710

Rachel Lawrence, SSE Renewables

rachel.lawrence@sse.com

+44 (0) 7385 368783

 About Dogger Bank Wind Farm

  • A 50:50 joint venture between Equinor and SSE Renewables.
  • Financial Close on Dogger Bank A and Dogger Bank B is expected shortly with Financial Close for Dogger Bank C expected in late 2021.
  • Consent was granted in 2015.
  • Located in the North Sea, with each phase more than 130km from the Yorkshire Coast.
  • Each phase of the project (Dogger Bank A, Dogger Bank B and Dogger Bank C) will have an installed capacity of 1.2GW and will be able to power 1.5 million homes. Together, they can provide approximately 5% of the UK’s estimated electricity generation.
  • Construction activities started in 2020; while turbine installation is scheduled to begin in 2023 at Dogger Bank A.
  • The first phase, Dogger Bank A, is expected to be operational in 2023. The overall wind farm is expected to be complete in 2026.
  • Dogger Bank A and B has confirmed GE’s 13MW Haliade-X as the turbine powering the first two phases of the project. As the first order for the 13MW Haliade-X, installation at Dogger Bank A will be the first time the turbine is installed in the world.
  • One rotation of the Haliade-X 13MW blades can power one UK home for more than two days.
  • The wind turbines will be installed on monopile foundations. Preferred supplier for foundation fabrication will be announced in 2020.
  • The project will be the first in the UK to use a High Voltage Direct Current (HVDC) transmission system due to long distance to grid connection point.

 About SSE Renewables 

SSE Renewables is a leading developer, owner and operator of renewable energy across the UK and Ireland, with a portfolio of around 4GW of onshore wind, offshore wind and hydro. Part of the FTSE-listed SSE plc, its strategy is to drive the transition to a net zero future through the world class development, construction and operation of renewable energy assets.

SSE Renewables owns nearly 2GW of operational onshore wind capacity with over 1GW under development. Its 1,459MW hydro portfolio includes 300MW of pumped storage and 750MW of flexible hydro. Its operational offshore wind portfolio consists of 487MW across two offshore joint venture sites, Beatrice and Greater Gabbard, both of which it operates on behalf of its asset partners.

SSE Renewables has the largest offshore wind development pipeline in the UK and Ireland at over 6GW, of which around 3GW is in construction or consented. It is currently constructing the world’s largest offshore wind farm, the 3.6GW Dogger Bank Wind Farm in the North Sea, a joint venture with Equinor. It also building Scotland’s largest offshore wind farm, the 1.1GW Seagreen Offshore Wind Farm in the Firth of Forth, which is a joint venture with Total.

About Equinor in the UK   

Equinor has been operating in the UK for over 35 years. Headquartered in Norway, the company employs 22,000 people globally, and over 650 in the UK. As a broad energy company, Equinor is committed to long term value creation in a low carbon future, and targeting carbon neutral operations globally by 2030.

Equinor is the UK’s leading energy provider and supports the UK economy by investing billions in crucial energy infrastructure, working with over 700 suppliers across the country. Its energy supplies from Norway meet more than one quarter of the UK’s demand for natural gas and around one fifth of its demand for oil, both produced with one of the lowest carbon footprints in the industry. It operates the Mariner oil field, one of the largest and most digitally advanced offshore investments in the UK over the last decade, and is progressing Rosebank, the largest undeveloped field in the UK.

Both projects support hundreds of jobs and economic activity in Scotland. Equinor also operates two offshore wind farms off the East Coast of England, Dudgeon and Sheringham Shoal. It is a pioneer in floating wind technology with Hywind Scotland, the world’s first floating wind farm off the coast of Peterhead, which is partnered with Batwind, the world’s first battery for offshore wind. And with its partner SSE Renewables, Equinor is building the largest offshore wind farm in the world, Dogger Bank, off the North East coast of England. It is also a leader in both carbon capture utilisation and storage (CCUS) and hydrogen, and is developing a number of projects in Europe, including in the Humber and Teesside regions of North East England.