Equinor and SSE Renewables have signed 15-year Power Purchase Agreements for 6 TWh/year from the 1.2 GW Dogger Bank offshore wind farm, the project partners said Nov. 24.
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Danske Commodities will have trading and balancing responsibility for 480 MW, while Centrica Energy Marketing and Trading, Shell Energy Europe and SSE Energy Supply will have responsibility for 240 MW each.
"Concluding offtake Power Purchase Agreements with some of the leading energy trading companies for Dogger Bank C means we are well on track to reach financial close for the third phase of Dogger Bank Wind Farm by the end of the year," project director at SSE Renewables Steve Wilson said.
The deals follow a competitive bidding process. No pricing details were disclosed.
Dogger Bank C was awarded Contract for Difference support at GBP41.61/MWh in May. The index linked price has since risen to GBP49.47/MWh.
UK power prices hit a record GBP480/MWh in September and have averaged just below GBP200/MWh since, S&P Global Platts data shows.
UK 2022 baseload power was at GBP143.51/MWh Nov. 23, making Great Britain Europe's premium market, Platts data shows.
Dogger Bank phases
Dogger Bank, the world's biggest offshore wind farm with a total 3.6 GW, is to start commissioning from 2023.
Financial close for phases A and B with GBP 5.5 billion was achieved in November 2020.
Danske signed in August 2020 two PPAs with 240 MW each for Dogger Bank A and B.
"Dogger Bank is a ground-breaking project, setting new world records and pioneering technology," Danske Commodities head of European Power Trading Tor Mosegaard said. "With Dogger Bank C now part of Danske Commodities' contract portfolio, we're proud to be selected as an offtaker for all three Dogger Bank projects."
Equinor acquired Danske Commodities in 2019 for Eur400 million. The trader now operates in 39 countries with a renewable energy contract portfolio of over 6.9 GW.
Dogger Bank A and B is a joint venture between SSE Renewables (40%), Equinor (40%) and Eni (20%).
In November, SSE and Equinor announced Eni would also take a 20% stake in Dogger Bank C.
When fully complete in 2026, Dogger Bank will produce enough renewable electricity to supply 5% of UK demand and power 6 million homes each year.