World’s biggest wind farm – offshore UK – a step closer

SSE Renewables, together with its 50:50 joint venture partner, Equinor, has reached financial close on the first two phases of what will be the world’s biggest offshore wind farm.

The two companies are proceeding with the first two phases of Dogger Bank Wind Farm, a ground-breaking project off the north east coast of England which, once all three phases are complete in March 2026, will be the largest in the world.

Each phase has a capacity of 1,200MW and will generate around 6,000GWh annually. In total, Dogger Bank will produce enough clean, renewable electricity to supply 5% of the UK’s demand, equivalent to powering six million UK homes each year.

The funding of the development of Dogger Bank A and B represents the largest ever offshore wind project financing anywhere in the world, and SSE’s expected equity investment forms part of its £7.5bn investment programme to March 2025, the renewables element of which will double its renewables output by 2025.

Total investment in the first two phases of the project will be around £6bn and, SSE says, has already secured the creation of 320 new skilled jobs for the North East of England associated with the development and operation of the wind farm, with more to come as construction ramps up.

Dogger Bank Wind Farm is the largest of SSE Renewables’ projects currently in construction. The company is also leading the construction of the Seagreen offshore wind farm (1,075MW, SSE Renewables share 49%), which will be Scotland’s largest on completion, and the wholly owned Viking wind farm (443MW), the UK’s most productive onshore wind farm.

“We are proud to be leading on the construction and development of Dogger Bank Wind Farm, which has been 10 years in the making. We are putting our money where our mouth is on delivering net zero and reinforcing the UK’s position as a world leader,” says Alistair Phillips-Davies, SSE chief executive. “This investment will help drive a green recovery from coronavirus through the project’s construction over the next five years, creating jobs and boosting the local economy.”

“We are proud to take this big step forward in delivering what will be the backbone of a growing wind hub in the North Sea,” says Pål Eitrheim, Equinor EVP of New Energy Solutions. “Through the sheer scale of the project, we have delivered record-low contract prices for the UK market, and as operator of the wind farm we will continue to deliver value to the UK for years to come.”

State-backed Norwegian Export Credit Guarantee Agency, GIEK, whose mission is to promote Norwegian exports, says the total cost of the project is £65bn. In 2019, it secured a guaranteed electricity price from the UK’s renewables programme for 15 years.

Equinor and SSE are seeing the usefulness of GIEK guarantees in their project financing mix. Norway’s robust treasury position makes GIEK’s triple A-rated instruments among the most valuable guarantees internationally, while GIEK’s participation often makes it easier to finalise funding for such large projects, says the company. Subject to deliveries from Norwegian exporters, GIEK guarantees extend the lending capacity of banks which is a big competitive advantage.

“GIEK’s pragmatic and collaborative approach has been an important factor in enabling financial close to be reached, and the sponsors look forward to continuing to work closely and productively with GIEK throughout the term of the financing,” says Oliver Cass, finance director at Dogger Bank Wind Farms.

GIEK says it has many years of experience in participating in complex international projects within energy and shipping, and has successfully collaborated with many different financial actors.

“We go the extra mile to help Norwegian suppliers in tough international markets,” says GIEK managing director, Wenche Nistad. “As a rapidly growing sector, offshore wind promises big opportunities for agile companies, and particularly those with deep marine expertise from oil and gas, and shipping.”

Aibel will supply high-voltage transformer platforms to Dogger Bank, while OHT Alfa Lift will be fielding its custom-built semi-submersible vessel, Alfa Lift, to install wind turbines and transition pieces. The ship is currently under construction in China.