East Anglia ONE’s Price of £119/MWh Confirmed
- Business & Finance
Low Carbon Contracts Company (LCCC), a UK government-owned company created to deliver key elements of the Electricity Market Reform Programme, confirmed that Contract for Difference (CfD) milestones for East Anglia ONE have been fulfilled.
With the CfD milestones achieved and confirmed by the Low Carbon Contracts Company, the project will be delivered at a price of £119/MWh, a cost reduction of 20% compared to other offshore wind farms that have been built in the UK, ScottishPower Renewables said.
Low Carbon Contracts Company CEO Neil McDermott, said: “The milestone requirement is a key obligation under the CFD and we look forward to working with East Anglia ONE to deliver this landmark project.”
ScottishPower Renewables said the cost reduction has been made possible by deciding to use advanced technology, such as larger and more efficient turbines.
Keith Anderson, CEO of ScottishPower Renewables, said: “We have concluded Europe’s largest project-specific wind turbine agreement just a month after taking our final investment decision, and we have scaled the final hurdle by satisfying our CfD conditions with the Low Carbon Contracts Company.
“It is now full steam ahead for East Anglia ONE, with ground set to be broken early next year.”
Construction is planned to commence in 2017, with the first turbines installed by 2019, and the project is expected to be fully operational during 2020.
Ignacio Galán, Iberdrola and ScottishPower Chairman, said: “Offshore wind works. We have seen this in our highly efficient West of Duddon Sands project, and cost reductions are already benefiting the delivery of our Wikinger project being constructed in Germany. East Anglia ONE will raise the bar further, as technology matures and expertise in the supply chain increases. We see huge potential globally for offshore wind, and we will continue to lead the industry in driving down costs.”