15-year offtake Power Purchase Agreements (PPAs) have been signed for the third phase of the 3.6 GW Dogger Bank, the world’s largest offshore wind farm, SSE Renewables and Equinor said.
Dogger Bank Wind Farm will be constructed over 130 kilometres out to sea off the north-east coast of England and is expected to be fully commissioned by March 2026.
Due to its size and scale, Dogger Bank Wind Farm is being built in three consecutive 1.2 GW phases: Dogger Bank A, Dogger Bank B, and Dogger Bank C.
Each phase is expected to generate around 6 TWh of electricity annually, totalling 18 TWh annually across all three phases, enough renewable electricity to supply five per cent of the UK’s demand and equivalent to powering six million UK homes.
Separate PPAs for a total of 1.2 GW for Dogger Bank C have now been concluded with sponsor offtakers Danske Commodities (40 per cent share) on behalf of Equinor and SSE Energy Supply Limited (20 per cent share) on behalf of SSE Renewables, and also with external offtakers Centrica Energy Marketing and Trading (20 per cent share) and Shell Energy Europe Limited (20 per cent share). The agreements are subject to Financial Close on Dogger Bank C, which is expected by the end of 2021.
The deals to buy the power generated by the third phase of the wind farm follow the conclusion of a competitive bidding process.
Back in 2020, Equinor and SSE signed four PPAs for the entire output of Dogger Bank A and B with Ørsted (40 per cent), Shell Energy Europe (20 per cent), Danske Commodities (20 per cent on behalf of Equinor), and SSE Energy Supply (20 per cent on behalf of SSE Renewables).
”Concluding offtake Power Purchase Agreements with some of the leading energy trading companies for Dogger Bank C means we are well on track to reach financial close for the third phase of Dogger Bank Wind Farm by the end of the year,” Steve Wilson, Dogger Bank Wind Farm’s Project Director at SSE Renewables, said.
”I’m particularly pleased the agreements being announced today see existing project offtake partnerships being extended across all three phases of the wind farm as well as a new project offtake relationship being forged. Working together daily with our offtake partners we’ll bring new green energy from the world’s largest offshore wind farm to the National Grid so that we’re powering change for a net zero future for millions of UK customers.”
Danske Commodities will have trading and balancing responsibility for 480 MW while Centrica Energy Marketing and Trading, Shell Energy Europe, and SSE Energy Supply will have responsibility for 240 MW each of installed generation capacity across Dogger Bank C.
”Securing offtake agreements for Dogger Bank C is very exciting as it brings us one step closer to Financial Close for the third phase of the project,” Halfdan Brustad, vice president for Dogger Bank at Equinor, said.
”Following close behind Dogger Bank A and B, development of Dogger Bank C is progressing well and we hope to be able to reach Financial Close by the end of this year. With this, we will really start to see the magnitude of this world-leading offshore wind farm, and the benefits that a project of this size can bring both to the UK, and wider offshore wind industry.”
Dogger Bank Wind Farm secured 3.6 GW 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 for Dogger Bank C 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 the third phase of the wind farm into the GB electricity market when it enters commercial operation.
Tor Mosegaard, VP, Head of European Power Trading, Danske Commodities, said: ”The PPA with Dogger Bank C 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.”
Dogger Bank Wind Farm will be the first project to use GE Renewable Energy’s Haliade-X 14 MW, the first offshore wind turbine in the world to operate at 14 MW, and due to its distance from shore, the first UK High Voltage Direct Current connected wind farm.
Onshore construction began in 2020 and is currently underway for Dogger Bank A and Dogger Bank B, with offshore construction on Dogger Bank A due to begin in the first quarter of 2022.
First power is expected in Summer 2023 and Summer 2024 for Dogger Bank A and B, respectively, with commercial operations to follow around 6 months later. Turbine installation for Dogger Bank C will begin in 2025.
”Offshore wind is playing an increasingly important role in supplying the UK with low-carbon electricity. This agreement expands our portfolio of clean power and increases to 720MW our combined offtake from Dogger Bank, one of the most ambitious renewable power projects in the world,” David Wells, Vice President of Shell Energy Europe Limited, said.
Dogger Bank A and B is a joint venture between SSE Renewables (40 per cent), Equinor (40 per cent) and Eni (20 per cent). In November 2021 SSE Renewables and Equinor, 50:50 joint venture partners in Dogger Bank C, announced Eni will take a 20 per cent stake in the final phase, with SSE Renewables and Equinor maintaining 40 per cent stakes each, in a deal that is expected to complete in the first quarter of 2022, subject to Dogger Bank C Financial Close and regulatory approvals.
SSE Renewables is leading on the development and construction of Dogger Bank Wind Farm, and Equinor will operate the wind farm on completion for its expected operational life of around 35 years.
”We are delighted to secure this landmark power purchase agreement, which will see SSE Energy Supply offtake 20% of the renewable energy generated by Dogger Bank C when it becomes fully operational from 2026. Combined with our agreements for Dogger Bank A and B, we’re proud to be bringing a massive 720MW of green electricity from the world’s largest offshore wind farm to customers across the UK, driving the transition to a net zero future,” Finlay McCutcheon, Managing Director of Energy Portfolio Management at SSE, said.