EDP Renováveis, S.A. (EDPR) and ENGIE recently announced that Moray Offshore Windfarm (East) Limited, a joint venture company owned by EDPR (77 percent) and ENGIE (23 percent), has been awarded a 15-year Contract for Difference (CfD) for the delivery of 950 MW of offshore wind generation at £57.50/MWh (in real 2012 terms). The contract was awarded by the U.K.’s Department for Business, Energy & Industrial Strategy (“BEIS”) following its latest CfD auction.
EDPR and ENGIE are jointly developing this project, which is off the northeast coast of Scotland. Upon conclusion of the development phase and the selection of all partners and suppliers for the different stages of construction and operation, the project would then move toward the construction phase. Completion and the commencement of commercial operation is expected in 2022.
“With (the) announcement, EDPR increases its growth options in offshore wind in an attractive market, thereby enhancing and diversifying the company’s long-term profitable growth options while maintaining a balanced risk profile,” said João Manso Neto, CEO of EDPR. “EDPR’s sustained commitment to the U.K. offshore wind market through Electricity Market Reform and the transition to CfD auctions has enabled dramatic cost reduction from £150/MWh in 2014 to £57.50 /MWh today.”
“This auction has demonstrated the real progress in cost reduction, and our result shows how affordable offshore wind can be compared to other technologies, including new thermal generation,” he said. “The U.K. needs more low carbon generating infrastructure to maintain security of supply against an increasingly uncertain future. EDPR has demonstrated what can be done at this site. It is in the UK’s interests to enable us to continue this achievement at other sites”
“We are delighted that the Moray East offshore wind farm has received this CfD, which is an important step in taking this project forward,” said Wilfrid Petrie, CEO for ENGIE in the U.K. and Ireland. “This will be ENGIE’s first offshore wind development in the U.K. and complements our growing global offshore wind portfolio with projects in France, Portugal, and Belgium, as well as our existing renewables operations in the U.K.”
“ENGIE is committed to investing in sustainable energy solutions and innovative services in the U.K., including renewable energy generation,” he said. “Moray East will make a significant contribution toward helping the U.K. meet its decarbonization targets, and it will also support ENGIE’s ambition for 25 percent of its global energy portfolio to be renewable by 2020.”
“Moray East’s success in this auction will enable us to bring a high-quality, high-value offshore wind project to the U.K., and I would like to thank all of the organizations, individuals, and communities with an interest in the Moray Firth with whom we have worked to reach this vital milestone,” said Dan Finch, managing director of Moray Offshore Renewables. “Moray East also brings major economic opportunities to our supply chain. Innovation and co-operation have enabled the cost reduction which ensured success in this auction. Electricity from Moray East will be produced at the lowest cost of any offshore wind farm around the U.K., with exceptional benefits to consumers.”
Source: EDP Renewables
For more information, go to www.edpr.com
