National Grid unit awards reactive power contract to UK offshore wind farm

National Grid Electricity System Operator Ltd., the National Grid PLC subsidiary that balances power supply and demand in Great Britain, awarded a 10-year reactive power contract to the planned 1,200-MW Dogger Bank C offshore wind farm in the U.K.

The contract will see Dogger Bank C's onshore converter station at Lazenby in the northeast of England provide 200 megavolt ampere of reactive capability between 2024 and 2034, according to a Feb. 8 news release from SSE Renewables Ltd., the SSE PLC subsidiary leading construction across all three phases of the 3.6-GW Dogger Bank wind farm.

Reactive power services allow grid operators to ensure voltage levels on the system remain within a given range. The agreement marks the first time an offshore wind transmission asset has been awarded a contract through a reactive power tender by National Grid ESO, SSE Renewables said.

Another National Grid unit, National Grid Electricity Transmission PLC, will also provide a similar grid-support service in West Yorkshire following the closure of other power stations in that region. In all, Dogger Bank C and National Grid Electricity Transmission will provide 700 megavolt ampere of reactive power capability for the next 10 years while saving consumers "millions of pounds," the release said.

"Reactive power capability is vital for managing voltage and being able to operate a zero-carbon system of the future so we're excited to see that an offshore wind farm's transmission asset will deliver reactive power to support the wider network for the first time in Britain," Julian Leslie, head of networks at National Grid ESO, said in the release.

SSE Renewables and its partner Equinor ASA reached financial close on Dogger Bank C in December 2021. A month prior, the companies announced a deal to sell a combined 20% stake in the project to Italian oil and gas major Eni SpA for £140 million. At deal closing, SSE Renewables and Equinor will each hold a 40% stake in the Dogger Bank C, while Eni will own the remaining 20%.

The 2.4-GW Dogger Bank A and B Offshore Wind Farm has the same ownership structure, with Eni completing the previous transaction in March 2021.