UK Round 2 Offshore Wind Projects Pass First Milestone

The three offshore wind projects selected in the UK’s second Contracts for Difference (CfD) allocation round have passed their 12-month milestone requirement, Low Carbon Contracts Company (LCCC) said.

The three offshore wind projects are the 860MW Triton Knoll, the 950MW Moray Offshore Windfarm (East), and the 1,386MW Hornsea Project Two.

The Milestone Requirement must be met within 12 months of the CfD being signed and requires a generator to demonstrate their commitment to delivering the project by either incurring actual spend equal to 10% of the expected development and construction costs; or
by evidencing project commitments, including that financing is in place for the project and contracts are in place in relation to the material equipment for the generation and export of electricity.

The Triton Knoll project is being developed by innogy, in partnership with Japan’s J-Power and Kansai Electric Power. The wind farm is scheduled for commissioning in 2021/22. The project will be delivered at a strike price of GBP 74.75/MWh.

Hornsea Project Two and the Moray Offshore Windfarm (East) are to be commissioned in 2022/23 and will be delivered at a strike price of GBP 57.50/MWh, 50% lower compared to the results of the first auction held in 2015.

Hornsea Project Two is being developed by Ørsted. Moray Offshore Windfarm (East) is developed by Moray Offshore Windfarm (East) Limited, a joint venture company owned by EDP Renewables (56.7%), ENGIE (23.3%) and Diamond Generating Europe Limited (DGE) (20%).