DONG Energyhas been awarded a contract to build the Hornsea Project Two offshore wind farm, at the lowest-ever price for offshore wind in the UK (
www.dongenergy.com).
At £57.50 per MWh, the strike price for the Contract for Difference (CfD) is 50% lower than the previous round of CfD allocations just two years ago, demonstrating the rapid reduction in cost across the industry.
With a capacity of 1,386MW (enough to power over 1.3 million UK homes) Hornsea Project Two will become the world’s largest offshore wind farm, surpassing the giant 1,200MW Hornsea Project One, which DONG Energy is currently constructing (pictured).
Hornsea Project Two will be built 89km from the Yorkshire coast and is expected to be operational from 2022; it will contribute significantly to DONG Energy’s ambition of reaching a total offshore wind capacity of 11-12GW by 2025.
Matthew Wright, managing director of DONG Energy UK, said: “This is a breakthrough moment for offshore wind in the UK and a massive step forward for the industry.
“Not only will Hornsea Project Two provide low-cost clean energy to the UK, it will also deliver high-quality jobs and another huge boostto the UK supply chain.
“Successive governments deserve great credit for providing the certainty for continued investment in offshore wind, enabling it to become the thriving renewable industry it is today.
“Costs are falling rapidly, long-term and highly skilled jobs are being created across the North of England and the UK supply chain is going from strength to strength.
“We’re now really seeing the benefits of this commitment to offshore wind, and there is still so much more to come.”