SSE Renewables and Equinor have announced that 15-year offtake power purchase agreements (PPAs) have been signed for the first two phases of the Dogger Bank windfarm.
The 3.6GW project is a joint venture, with SSE Renewables leading the construction of the windfarm, located more than 130km off the north east coast of England, while Equinor will operate the project during its expected 25-year lifespan.
Separate PPAs for a total of 2.4GW across both Dogger Bank A and B have been concluded with external offtakers Orsted (40 per cent share) and Shell Energy Europe (20 per cent share), as well as with sponsor offtakers Danske Commodities (20 per cent share) on behalf of Equinor and SSE Energy Supply (20 per cent share) on behalf of SSE Renewables.
Orsted will have trading and balancing responsibility for 960MW while Shell Energy Europe, SSE Energy Supply and Danske Commodities will have responsibility for 480MW each of installed generation capacity across both sites.
The agreements are subject to financial close on Dogger Bank A and Dogger Bank B, which is expected shortly.
The deals follow the conclusion of a competitive bidding process and SSE Renewables says that taken together, they represent the largest set of PPAs completed to date in a tender process for a renewable energy project in the UK energy market.
Steve Wilson, Dogger Bank windfarm’s project director at SSE Renewables, said: “Today’s announcement that we have concluded offtake power purchase agreements for Dogger Bank A and B marks one of our final milestones ahead of reaching financial close soon for what will be the world’s biggest offshore wind farm.
“These agreements with leading energy trading companies will ensure the renewable energy generated by the first two phases of Dogger Bank Wind Farm can be sold into the GB electricity market, delivering on our promise to power millions of British households with green energy.”
Halfdan Brustad, vice president for Dogger Bank at Equinor, said: “Despite the current global challenges, the project is really moving forwards and this tangible milestone brings us one step closer to financial close.
“Large-scale renewable energy projects like Dogger Bank are not only crucial for the UK to reach its net zero ambitions, the project will bring many economic benefits to the UK in terms of jobs and supply chain opportunities. We are proud to be contributing to a just energy transition and supporting the government’s 10 point plan for a green industrial future.”