innogy’s 1.4GW Sofia offshore wind farm prevails in UK’s CfD auction 2019
German energy company innogy said that its 1.4GW Sofia offshore wind farm won the UK’s Contracts for Difference (CfD) third-round auction (CfD auction 2019) and contract from the UK Department for Business, Energy & Industrial Strategy (BEIS).
The CfD strategy supports new renewable energy projects in the UK by providing them with a fixed strike price for electricity for the initial 15 years of their operations.
The Sofia offshore wind farm is proposed to be built 195km off the UK coast on Dogger Bank in the North Sea with an investment of £3 billion.
The new innogy offshore wind project will have a fixed strike price a price of £39.65 per MWh.
Commenting on the Sofia offshore wind farm success at the CfD auction 2019, Hans Bünting – COO Renewables of innogy, said: “I am very pleased that Sofia, the largest project in our offshore wind portfolio, has been successful in the latest UK auction. We have passed an important milestone on the way to realizing Sofia wind farm and also proved that we can continue to be successful in a very competitive market environment.
“Sofia’s auction success confirms the excellent work the team has done in recent years. Thanks to our extensive know-how in the development as well as the construction and operation of complex offshore projects and our varied research and development activities we have succeeded in developing a valuable project and in further reducing the costs for offshore wind energy in the UK.”
Sofia offshore wind farm map
Having secured the BEIS contract, the Sofia offshore wind project can now proceed further towards the next steps, that is the final investment decision and the construction stage.
innogy expects to take a final investment decision on the Sofia offshore wind farm in 2020 once the contracting agreements with prospective supply chain partners are signed. Onshore construction of the Sofia offshore wind project is slated to begin in 2021, while offshore construction will start in 2022.
The Sofia offshore wind farm is expected to generate its first power in 2024/25, and is targeted to be fully operational by the end of 2026.
Once fully operational, the Sofia offshore wind project is expected to meet the power consumption needs of approximately 1.2 million average UK homes.
Currently, the offshore wind farm in North Sea will be completely owned by innogy. However, the German energy company plans to study the various alternatives regarding ownership and financing structure of the Sofia offshore wind farm to maximize value for the company and also its shareholders.
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