The Danish offshore wind firm, DONG Energy has recently inked a 15-year contract of difference with the U.K. government to build the world’s largest wind farm in the North Sea. With a gigantic capacity of 1386 MW, the Hornsea Project Two offshore wind farm is forecast to provide electricity to almost 1.3 million homes in U.K. It has been also reported that once fully operational, this breakthrough project is expected to surpass all the records of Hornsea Project One, even exceeding a power generation capacity of 1200 MW, which the renewable giant is presently working on. Undeniably, this is the biggest pact till date ever taken in the offshore wind industry space.
The project also set a record of lowest-ever contract price for an offshore wind plant in the U.K., with a strike price that is almost 50% lesser than the previous round of allocations, merely two years ago. The offshore wind market giant has affirmed that the strike price for the power it would be supplying from this project will be charged only USD 76.32 per megawatt hour. As a part of the regulatory changes pertaining to the regional electricity market, the U.K. government has replaced direct subsidies with a CfD (contracts-for-difference) system for renewable power. Getting a contract of difference for the Hornsea Project further reflects an important step undertaken by the British government toward making offshore wind one of the most competitive forms of electricity generation.
Reportedly, Hornsea Project Two would be built around 89 kilometers away from the Yorkshire coast and is expected get onboard by 2022. Analysts depict that the Hornsea Project will turn out to be a potential contributor in DONG’s mission of generating a total offshore wind power up to 11 GW to 12 GW by 2025. Hornsea Project one is already operational, and DONG has already started the process of consultation for Hornsea Project Three, cite reliable sources. Considering the present scenario, it is certain that the North Sea area underlines a huge potential for offshore wind.
For the record, DONG Energy is a leading giant in the offshore wind energy business space and has the most lucrative portfolio of offshore wind projects in Europe. With reduced cost, improved quality of delivery, and an optimal time frame, DONG has always managed to stand by its commitments regarding offshore wind firm agreements. Hornsea Project Two is just another feather added to its hat.
Satarupa develops content for Market Size Forecasters. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writing and now pens down articles pertaining to marke...