Scottish offshore wind project awarded 15 year UK Government contract

A Scottish offshore wind project has been awarded a 15 year Contract for Difference (CfD) as part of the UK Government’s latest CfD Allocation Round.

Moray West Offshore Wind Farm, based in Edinburgh, was one of six successful offshore wind bidders at the auction, which attracted a significant level of competition - all committed to delivering low cost renewable energy, supporting the UK and Scottish renewable targets and providing households with access to low cost low carbon electricity.

The project, which is being developed by Ocean Winds, a 50:50 joint venture between EDP Renewables and ENGIE, was awarded a 15 year CfD for the delivery of 294 MW wind generation at 37.35£/MWh (in 2012 prices).

Following the CfD award, Moray West is expected to make a final investment decision and reach financial close in the coming months while ramping up construction activity to meet planned first power in 2024.

Adam Morrison, project director for Moray West, said: “We are pleased to receive a CfD offer and will now continue to focus our combined efforts and expertise to deliver the project on time.

“Within the space of a decade the sector will have delivered an energy revolution. Scotland’s coal fired power stations have closed, and Scotland’s domestic demand for electricity will be met by Scottish offshore wind farms.

“This revolution not only saves burning more than 4m tonnes of coal p.a. but also now delivers electricity at great value to consumers.

“I would like to thank both internal and external stakeholders involved in getting Moray West Offshore Wind Farm to this stage. Without their support we would not have been so successful in building a robust commercial project that underpins this successful bid.

“Securing the recently announced large scale corporate PPA enabled the project to build a contracted revenue stack that reduced risks around the CfD process. We now look forward to taking Moray West through its construction phase and delivering significant economic opportunities for Scotland and the UK.”

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