Energi Coast Welcomes CfD Round 3 Offshore Wind Winners

Energi Coast is well-placed to support the development of the 1.4GW Sofia and the 3.6GW Dogger Bank projects selected in the Contracts for Difference (CfD) Allocation Round 3, this North East of England’s offshore wind cluster said.

In total, six UK offshore wind projects have won CfD, including Sofia, Dogger Bank Teesside A, Dogger Bank Creyke Beck A, and Dogger Bank Cryeke Beck B, all located off the North East of England coast.

Sofia is being developed by Innogy Renewables UK, and Dogger Bank projects by a partnership between Equinor and SSE.

The developments secured strike prices of between GBP 39.65/MWh and GBP 41.61/MWh, which is nearly 30 percent lower compared to the strike prices in the second CfD auction in 2017.

“The UK supply chain has matured to become ideally-placed to support the offshore wind developments that have been awarded Contracts for Difference,” George Rafferty, Chief Executive of UK energy sector business development experts NOF, said.

“Offshore wind is now a central part of a balanced UK energy mix and the companies within the NOF membership and its wider network for diversified and evolved to contribute to the delivery of these projects through the application of innovative technology-led solutions and effective working practices.”

North East England’s offshore wind cluster is well-placed to support these developments, Energi Coast said, adding that the cluster has matured to deliver the majority of what is required for an offshore wind farm, both at design, construction, installation and operations & maintenance phase. This expertise ranges from foundations, cables, installation, ports and logistics, training and specialist subsea services.

“This is a significant step forward to the UK offshore wind industry, which presents tangible opportunities for North East England’s cluster of supply chain companies that have the experience and expertise to support their delivery and operation,” James Ritchie, Chair of Energi Coast and CEO at Tekmar Group plc, said.

“We do not underestimate the challenges this price reduction will create, but I am confident our cluster will be cost-competitive to support the delivery of these projects and we hope developers will recognise the benefit of using a proven, local supply chain. The innovation that companies from our cluster have brought to the industry will enable these developers to deliver sustainable offshore wind generation and ensure the sector can play its role in decarbonising the UK energy system.”