DONG Energy has been awarded a contract to build its Hornsea Project Two offshore wind farm off the Yorkshire coast.
At 57.50 £/MWh, the strike price for the Contract for Difference (CfD) is 50% lower than the previous round of CfD allocations just two years ago.
With a capacity of 1,386 MW, enough to power over 1.3 million UK homes, Hornsea Project Two will become the world’s biggest offshore wind farm, surpassing DONG’s 1,200MW Hornsea Project One.
Hornsea Project Two will be built 89 kilometres 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.
Samuel Leupold, Executive Vice President and CEO of Wind Power at DONG Energy, said: “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.”
Matthew Wright, Managing Director for DONG Energy UK, added: “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.”