Mixed results for offshore wind projects: East Anglia One is successful in Government auction - but Race Bank and Galloper not included
PUBLISHED: 07:40 26 February 2015 | UPDATED: 10:23 27 February 2015
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A major wind farm planned off the coast of East Anglia has been given the go-ahead by the Government.
List of successful auction winners
Advanced Conversion Technologies
Energy Works (Hull)
Enviroparks Hirwaun Generation Site
Energy from waste
Wren Power and Pulp
K3 CHP Facility
East Anglia One
Neart na Gaoithe
Dorenell Wind Farm
Kype Muir Wind Farm
Clocaenog Forest Wind Farm
Middle Muir Wind Farm
Brenig Wind Farm
East Anglia One - a 714MW project - is one of just two offshore wind projects given the green light in an auction where energy projects are given a guaranteed price for their output.
The Government said that the 27 contracts awarded this morning, including offshore wind, onshore wind and solar power projects, could power the equivalent of all the homes in Wales.
East Anglia One
East Anglia One will be the best value offshore wind farm ever to be built in the UK, according to ScottishPower Renewables, which is behind the 714 megawatt (MW) development.
It will be paid £119 per MWh for the £2bn investment in the project.
It said that it was able to keep down its bid because of its engineering, procurement and operational efficiencies introduced in to the project.
The development will see around 100 wind turbines installed in the southern North Sea, which could power about 500,000 homes each year.
The award today falls short of the 1,200MW of wind farms which have planning permission.
It said it may still want to build the full project and could bid for further subsidy in a future Government auction.
The East Anglia ONE project will be developed solely by ScottishPower Renewables.
Keith Anderson, chief executive of ScottishPower Renewables, said: “We are delighted to have secured a contract to take East Anglia ONE forward, which will be one the best value offshore windfarms ever developed anywhere in the world.
“It signals a major industry breakthrough in efforts to reduce the costs of offshore wind.
ScottishPower Renewables has been leading efforts to drive down costs for many years, and we delivered considerable efficiencies in the recent construction of West of Duddon Sands. With East Anglia ONE, we are driving the industry towards its cost reduction targets and demonstrating the long term sustainability of offshore wind.
“Final negotiations will now commence with the wider supply chain, and in the coming months we will look to secure local port facilities to support the project, as well as agreeing contracts for the major components. Overall investment to deliver the project will be in the region of £2bn, representing an opportunity to create significant UK economic benefit and creating employment opportunities for up to 3,000 people.”
It has been five years since The Crown Estate awarded the lease to Vattenfall and SPR, and almost nine months it was given planning permission.
The company plans to start building the windfarm in 2017, with the first turbines installed by 2019.
It hopes the project will be fully working during 2020.
Scottish Power Renewables said more than 90pc of all its spending on the project had been incurred in the UK and, during the planning process alone for East Anglia ONE, more than £15m of contracts have been awarded to local companies working on the project.
ScottishPower Renewables, which is part of Spanish firm Iberdrola, is behind the project.
But other major projects which were being drawn up in the region - Galloper and Race Bank - have not been named in the list of projects published today.
And the 100 turbine deal for the East Anglia One project is significantly smaller than the original plans for 240 turbines, generating 1,200 MW.
The winners of the auction will be awarded 15-year contracts which guarantee a price for the power.
The East Anglia One wind farm in numbers
100 turbines and foundations to produce 714 MW of power
Two offshore substation platforms and their foundations to collect the electricity from the turbines and transform it to a form suitable for transfer to shore.
Two seabed export cables, each around 73km in length, to transfer the electricity to shore.
One landfall site with onshore transition pits to connect the offshore and onshore cables.
Six onshore underground cables, each of around 37km in length, to transfer the electricity from landfall to an onshore convertor station.
Eight cable ducts for two future East Anglia projects to connect into Bramford Substation.
One onshore convertor station next to the existing substation at Bramford, Suffolk, to connect the offshore windfarm to the National Grid.
The Government claims the green energy auction has driven down prices by as much as 58pc for solar power, and that the projects will lead to the UK emitting 4m fewer tonnes of carbon dioxide into our atmosphere each year - the equivalent of taking up to two million cars off UK roads.
Energy & Climate Change Secretary, Ed Davey said: “This world leading auction has delivered contracts for renewables projects right across the UK. “These projects could power 1.4 million homes, create thousands of green jobs and give a massive boost to home-grown energy while reducing our reliance on volatile foreign markets.
“The auction has driven down prices and secured the best possible deal for this new clean, green energy.”
He said that only the most price competitive projects received contract offers. – helping to drive down the cost of renewables support.
This is the first round of contracts, the budget for the next allocation round will be confirmed later this year - £50 million more has already been indicated for established technologies.
Currently in our area, the Greater Gabbard and Sheringham Shoal Offshore Wind Farms have been operating since September 2012 and Scroby Sands since 2004.
The extra funding will increase the amount
available for less established technologies, such as offshore wind and
some biomass technologies.
The main aim is to build a new generation of clean, reliable electricity supplies.
Energy and climate change secretary Edward Davey said: “The high demand for contracts shows that we’re one of the top places for
renewables investment, and the best place in the world for investing in offshore wind.”
James Gray, inward investment director for the East of England Energy Zone, described the news on East Anglia One as a “real shot in the arm” for the area.
“We had the boost of all of the early developments here - of Greater Gabbard, Sheringham Shoal and London Array - and we have been waiting with baited breath for Round Three,” he said.
“This really adds yet more to evidence to our argument that this is where offshore wind should be happening in England and strengthens our case that it should be concentrated off our coast.
“If we had not get this approval we would have been whistling in the wind. Now we can turn around and say we are moving to the next stage.”
Mark Pendlington, chairman of the New Anglia Local Enterprise Partnership, said: “This further confirms the place of East Anglia as a top location in the world for offshore wind.
“The development will provide an excellent economic boost for Norfolk and Suffolk and we will be working hard with Scottish Power to make sure that local businesses continue to benefit from big investments like this. £15 million of contracts have already been awarded with the prospect of much more to come
“Our Enterprise Zone is already home to a growing number of energy related businesses and this new wind farm will help attract many new businesses to our region, which is the best possible news for training and skills as well as for jobs and the economy as a whole.”