SSE Renewables and Equinor, the joint venture partners co-developing the 3.6 GW Dogger Bank Wind Farm in the North Sea, have signed a 15-year offtake power purchase agreement (PPA) for the third phase of the offshore wind farm.
Dogger Bank will be constructed over 130 km out to sea off the northeast coast of England, where wind speeds are higher and more consistent than near to the shore. 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.
Once the three phases are complete, which is expected by March 2026, Dogger Bank will be the largest offshore wind farm in the world.
Separate PPAs for a total of 1.2 GW for Dogger Bank C have been concluded with sponsor offtakers Danske Commodities (40% share) on behalf of Equinor and SSE Energy Supply Ltd. (20% share) on behalf of SSE Renewables, and also with external offtakers Centrica Energy Marketing and Trading (20% share) and Shell Energy Europe Ltd. (20% 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.
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 240MW each of installed generation capacity across Dogger Bank C.
“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,” says Steve Wilson, Dogger Bank Wind Farm’s project director at SSE Renewables. “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,” continues Wilson. “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.”
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 being announced 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.
“Combined with our agreements for Dogger Bank A and B, we’re proud to be bringing a massive 720 MW of green electricity from the world’s largest offshore wind farm to customers across the UK, driving the transition to a net zero future,” comments Finlay McCutcheon, managing director of energy portfolio management at SSE.
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.