OErsted A/S
DONG Energy awarded contract to build world’s biggest offshore wind farm
DONG Energy A/S / Miscellaneous DONG Energy has been awarded a contract to build its Hornsea Project Two offshore wind farm, at the lowest-ever price for offshore wind in the UK.
At GBP 57,50MWh, 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. Hornsea Project Two will contribute significantly to DONG Energyâs ambition of reaching a total offshore wind capacity of 11-12GW by 2025. Samuel Leupold, Executive Vice President and CEO of Wind Power at DONG Energy, says: âWeâre delighted to be awarded a Contract for Difference for Hornsea Project Two, which is another important step towards fulfilling our vision of making offshore wind the most competitive form of electricity generation.â âWe have always promoted size as a key driver for cost. The ideal size of an offshore wind farm is 800-1,500MW, and therefore it is natural that Hornsea Project Two will deliver record-low costs to society. At the same time, the low strike price demonstrates the cost saving potential of developer-built offshore grid connections, which in the UK is included in the project scope.â âWe remain fully committed to financial discipline, and Hornsea Project Two will be value creating to our investors.â Matthew Wright, Managing Director for DONG Energy UK, says: âThis 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.â âSuccessive 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. Weâre now really seeing the benefits of this commitment to offshore wind and there is still so much more to come. Indeed, it has the potential to play a key part in the realisation of the UKâs industrial strategy.â DONG Energy is already constructing Hornsea Project One and has started the consultation process for Hornsea Project Three, underlining the huge potential of this area of the North Sea for offshore wind.
Cost-drivers enabling the bid for Hornsea Project Two ⢠Risk reduction: DONG Energy already has several years of experience from developing Hornsea Project One in the North Sea. This reduces construction and operation risk of Hornsea Project Two. ⢠Synergies: Operations and maintenance on both Hornsea projects will be conducted from DONG Energyâs new hub in Grimsby, which also serves other DONG Energy offshore wind farms on the UK east coast. ⢠Maturing industry and technology: Innovation of offshore wind turbines, new installation equipment and methods, continuous improvements of foundation design, improved cables with higher capacity, and a growing and competitive supply chain. With the allocation of the CfD, DONG Energy has now taken a Final Investment Decision on Hornsea Project Two. The information provided in this announcement does not change DONG Energyâs previous financial guidance for the financial year of 2017 or the announced expected investment level for 2017.
Facts about Hornsea Project Two Offshore Wind Farm
Facts about DONG Energyâs operational offshore wind farms in the UK
⢠Barrow, 90MW
Investor Relations
Media Relations
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The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | DONG Energy A/S |
Denmark | |
ISIN: | XS0253170335 |
Category Code: | MSC |
TIDM: | 65XG |
Sequence No.: | 4614 |
End of Announcement | EQS News Service |