DONG Energy has been awarded a contract to build its Hornsea Project Two offshore wind farm, at the lowest-ever price for offshore wind electricity in the UK.
Projects owned by Germany’s Innogy Renewables and Denmark’s Dong Energy were among 11 winners of contracts with the UK Government that are worth up to £176m a year.
The auction marks the first time the level of British subsidies for offshore wind power fell below the subsidies previously awarded for new nuclear projects.
Offshore wind costs have halved in the last five years to under £58 for every megawatt-hour of electricity produced.
That compares with new nuclear plants at a subsidy of £92.50 per megawatt hour for 2022-23.
Hornsea Project Two will become the world’s biggest wind farm, even surpassing the 1,200MW giant Hornsea Project One which DONG Energy is currently constructing.
Hornsea Project Two will be built 89 kilometres from the Yorkshire coast and is expected to be operational from 2022.
Matthew Wright, Managing Director for 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 boost to the UK supply chain.”
The other successful technologies, advanced conversion technologies and dedicated biomass with combined heat and power, also achieved significant savings.
Projects are to be delivered across Great Britain from Wales to the Scottish Highlands and the West Midlands from 2021.
[Ref: constructionenquirer.com]
