The world’s biggest offshore wind farm will go ahead at record low prices after securing subsidies in the latest Government auction, its backers said.
The three successful offshore wind projects in the auction include Dong Energy’s Hornsea Project Two, 55 miles off the Yorkshire coast.
It will have enough capacity to power 1.3 million homes and will receive a guaranteed “strike” price for its electricity of £57.50 per megawatt hour.
At 1,386 megawatts (MW), it will overtake the giant 1,200MW Hornsea Project One currently being constructed by Dong Energy to become the world’s biggest offshore windfarm, the company said.
Also securing contracts in the latest auction for low-carbon subsidies are the 860MW Triton Knoll Offshore Windfarm, 20 miles off the coast of Lincolnshire and 28 miles from north Norfolk, and 950MW Moray East Windfarm off the east coast of Scotland.
Dong Energy said the results of the auction were a “breakthrough moment” for offshore wind in the UK.
Matthew Wright, managing director for Dong Energy UK, said: “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.
“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,” he said, with “so much more to come”.
The project owners of Triton Knoll Offshore Wind Farm, innogy and Statkra, said their scheme would trigger capital investment of around £2 billion, with first energy generation from the scheme by as early as mid-2021.
Paul Cowling, innogy’s director of offshore wind, said: “Triton Knoll will provide low-cost, clean sustainable energy for consumers and UK businesses, that is cheaper than nuclear and competitive with new-build gas generation.
“Cost reduction is at the heart of offshore wind development and is accelerating faster than ever.
“The importance of offshore wind in the UK’s energy mix is now beyond doubt.
“Wind energy should be at the very core of the UK Government’s energy policy and our long-term energy security.”