innogy’s 1.4 gigawatt (GW) Sofia Offshore Wind Farm has won a Contract for Difference (CfD) in the UK Government’s latest auction, announced today (Friday 20 September 2019).
This means that the project, which brings with it significant economic benefits as well as low cost, clean green electricity for UK consumers, can now progress towards the final investment decision and into construction.
With a price of £39.65 per megawatt hour (MWh), this third allocation round has seen the lowest ever price for offshore wind in the UK.
Hans Bünting, COO Renewables, innogy SE said: “We are delighted to have won a CfD for Sofia, the largest project in our offshore wind portfolio.
“I want to congratulate the whole Sofia team for working tirelessly to achieve a price that reflects the offshore wind sector’s enormous cost reduction efforts over the past few years and its focus on ensuring the maximum benefit for UK consumers.
“The sector has targeted innovation, competition and skills to bring costs down, and at the same time the UK Government’s supportive frameworks and instruments have boosted investor confidence and given both scale and certainty to the UK supply chain.”
Sofia Offshore Wind Farm covers a site of almost 600 square kilometres and is located 195 km off the UK coast on Dogger Bank in the North Sea. Once operational, the total amount of power Sofia could generate would be enough to provide almost 1.2 million average UK homes with their annual electricity needs.
Director of Offshore Wind, innogy SE Paul Cowling said: “The auction result confirms the offshore wind sector’s pivotal role in meeting the UK’s net zero 2050 commitment and tackling the climate emergency while ensuring the lowest cost to consumers.
“The sector’s foresight has enabled the UK to take the lead globally in the deployment of offshore wind, with this auction confirming that costs are now down to a level well below that of fossil fuel generated electricity,” he said. “The Offshore Wind Sector Deal, agreed by industry and Government in March, will further strengthen the position and encourage export of the UK’s expertise and knowhow.
“innogy is at the forefront of the sector as one of the world’s most experienced developers and operators of offshore wind and we look forward to utilising our industry leading experience to ensuring the successful delivery of Sofia.”
Sofia Project Director David Few, who led the project through the auction, said: “It has been a huge team effort with many complexities and I congratulate everyone who has worked so diligently to ensure Sofia’s success as they have all played a role in today’s fantastic achievement.
“Now we have won a CfD we intend to progress the project through the latter stages of development and design, working closely with our major suppliers, wide cross section of stakeholders and the local Teesside community.”
Construction of the wind farm is currently due to start in 2021, subject to design refinement and all the associated financial decisions, including a final investment decision.