Power purchase agreements (PPAs) have been signed for the third phase of the 3.6GW Dogger Bank offshore wind farm being jointly developed by SSE Renewables and Equinor.
Dankse Commodities will take a 40% share of the estimated 6TWh annual output from the 1.2GW Dogger Bank C project on behalf Equinor, equating to 480MW of generation capacity. Meanwhile, SSE Energy Supply, Centrica Energy Marketing and Trading and Shell Energy Europe will each take 20%, equating to 240MW of generation capacity.
Equinor and SSE Renewables secured agreements for all three phases of Dogger Bank in the most recent Contracts for Difference (CfD) auction in 2019 at strike prices of around £40/MWh (2012 prices). The PPAs announced on Wednesday (24 November) will cover the same 15-year period as CfD for Dogger Bank C.
The agreements are subject to financial close on Dogger Bank C, which is expected by the end of this year.
PPAs were signed for Dogger Bank A and B in November 2020, with Orsted taking 40% of their output and Danske Commodities, SSE Energy Supply and Shell Energy Europe each taking 20%.
Ownership of Dogger Bank A and B is currently split between Equinor (40%), SSE Renewables (40%) and Eni (20%). There will soon be the same split for Dogger Bank C after Equinor and SSE recently agreed to each sell a 10% stake in the project to Eni as they have already done for the first two phases.
Onshore construction is already underway for Dogger Bank A and B, with offshore construction for Dogger Bank A due to begin in the second quarter of 2022. They are expected begin generating power in the summers of 2023 and 2024 respectively, with commercial operation following around six months later.
Turbine installation for Dogger Bank C is scheduled to begin in 2025. The Dogger Bank is set to become the world’s largest offshore wind farm upon its expected completion in March 2026.
SSE Renewables is leading the development and construction of Dogger Bank, whilst Equinor will operate the wind farm over its anticipated 35-year life.
Tor Mosegaard, vice president and head of European power trading for Danske Commodities, said: “The PPA with Dogger Bank C is a great addition to our long-term portfolio and it shows our commitment to British renewables. Danske Commodities has traded power in the UK for more than ten years and we see PPAs as a crucial part of ensuring the continued development of renewables.”
Cassim Mangerah, managing director of Centrica Energy Marketing and Trading, said: “We are proud to take a significant proportion of the output from Dogger Bank which, once complete, will be a very important energy resource for the UK. The signing of this deal further underlines our reputation as a leading player in European energy markets and will help us to deliver on our commitment to help our customers live more sustainably and more affordably.”
Shell Energy Europe vice president David Wells commented: “Offshore wind is playing an increasingly important role in supplying the UK with low-carbon electricity. This agreement expands our portfolio of clean power and increases to 720MW our combined offtake from Dogger Bank, one of the most ambitious renewable power projects in the world.”