EDP Renováveis, S.A. (“EDPR”) and ENGIE are pleased to announce that Moray Offshore Windfarm (East) Limited, a joint venture company currently owned by EDPR (77%) and ENGIE (23%), 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 UK’s Department for Business, Energy & Industrial Strategy (“BEIS”) following its latest CfD auction.
EDPR and ENGIE are jointly developing this project, which is located off the north-east 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 towards the construction phase. Completion and the commencement of commercial operation are expected in 2022.
João Manso Neto, CEO of EDPR, said:
“With today’s 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.
“EDPR’s sustained commitment to the UK 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. The UK 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”
Wilfrid Petrie, CEO for ENGIE in the UK & Ireland, said:
“We are delighted that the Moray East offshore wind farm has received this CfD, which is an important step in taking this project forward. This will be ENGIE’s first offshore wind development in the UK, and complements our growing global offshore wind portfolio with projects in France, Portugal and Belgium, as well as our existing renewables operations in the UK.
“ENGIE is committed to investing in sustainable energy solutions and innovative services in the UK, including renewable energy generation. Moray East will make a significant contribution towards helping the UK meet its decarbonisation targets and it will also support ENGIE’s ambition for 25% of its global energy portfolio to be renewable by 2020.”
Dan Finch, Managing Director of Moray Offshore Renewables, said:
“Moray East’s success in this auction will enable us to bring a high-quality, high-value offshore wind project to the UK, and I would like to thank all of the organisations, individuals and communities with an interest in the Moray Firth with whom we have worked to reach this vital milestone.
“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 UK, with exceptional benefits to consumers.”
Notes to Editors:
- Moray Offshore Windfarm (East) Ltd (known as ‘Moray East’) is owned 76.7% by EDPR – www.edpr.com and 23.3% by ENGIE – www.engie.com
- Development of Moray East commenced in 2010 with EDPR as lead developer of a joint venture which won development rights for Zone 1 of the UK’s 3rd round of offshore wind development.
- Consent was granted in 2014 by the Scottish Government for
- construction and operation of 1,116MW
- maximum turbine blade-tip height - 204m (669 feet)
- minimum distance from shore - 22km (13.5 miles)
- maximum of 186 turbines
- The CfD will provide for 950 MW capacity, capable of providing power for the average needs of over 950,000 UK homes (assuming 3,300 kWh p.a.).
About EDP Renewables (EDPR)
EDP Renewables (Euronext: EDPR) is a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer. With a sound development pipeline, first class assets and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is currently present in 12 markets (Belgium, Brazil, Canada, France, Italy, Mexico, Poland, Portugal, Romania, Spain, the UK and the US). Energias de Portugal, S.A. (“EDP”), the principal shareholder of EDPR, is a global energy company and a leader in value creation, innovation and sustainability. EDP has been a Dow Jones Sustainability Index for eight consecutive years.
For further information, visit www.edpr.com.