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Mixed results for offshore wind projects: East Anglia One is successful in Government auction - but Race Bank and Galloper not included

All 88 turbines at the Sheringham Shoal Offshore Wind Farm have now been installed. Picture: Ian Burt

All 88 turbines at the Sheringham Shoal Offshore Wind Farm have now been installed. Picture: Ian Burt

Archant © 2012

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

BHEG Walsall

Energy Works (Hull)

Enviroparks Hirwaun Generation Site

Energy from waste

Wren Power and Pulp

K3 CHP Facility

Offshore wind

East Anglia One

Neart na Gaoithe

Onshore wind

Dorenell Wind Farm

Kype Muir Wind Farm

Clocaenog Forest Wind Farm

Middle Muir Wind Farm

Brenig Wind Farm

Click here to view the graphic

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.”

22 comments

  • Further to my previous comment just seen on tv report today that the energy Price Comparison Web Sites that the government have been urging and encouraging consumers to use also appear to be ripping us off (whilst earning commission from the energy companies ).

    Report this comment

    Grey Fox

    Saturday, February 28, 2015

  • Port watcher - please tell us what turbine maker and or blade maker is relocating to the area? The only place earmarked for a turbine factory presently is on the Humber isn't it? The only increase in business will seen by Norwich Airport as they transit the workers between Europe and East Anglia

    Report this comment

    Rob44

    Saturday, February 28, 2015

  • So_Many_Haters! Likewise Port watcher.

    Report this comment

    "V"

    Friday, February 27, 2015

  • I notice GoneAway has done as his name suggests, as he hasn't come back with any figures to rebut the government report.

    Report this comment

    So_Many_Haters!

    Friday, February 27, 2015

  • Perhaps port watcher can tell us where these jobs are and where they were advertised ?.

    Report this comment

    "V"

    Friday, February 27, 2015

  • Good to see the work for the turbine construction is coming to the UK and many jobs on this project have already been allocated to "locals". If the trend started with the existing O&M Centre at Lowestoft continues, many more jobs will be coming to East Anglia. Also, the survey work was carried out by a East Anglian company.

    Report this comment

    Port Watcher

    Friday, February 27, 2015

  • It is good of the government to give such a large financial boost to the industries and contractors of Germany, Holland and Denmark. Nothing wrong with wind turbines - they are cheaper to install than the Nukes and considerably cheaper to decommission. Maybe Norfolk will get a couple of tea boy jobs out of this.

    Report this comment

    Rob44

    Friday, February 27, 2015

  • "The winners of the auction will be awarded 15-year contracts which guarantee a price for the power." Strange how this report, and Archant do not mention that this "guaranteed price" is very bad for consumers, and will always lead to higher prices and more fuel poverty.

    Report this comment

    "V"

    Friday, February 27, 2015

  • So here we are in constant need of an increase in our UK electricity supply... The Increasing population, using more electricity, more using the internet and more every day charging batteries and phones and countless other things... The future of electric cars is another probable extra demand ... With the UK importing up to 25% of power from Europe, self reliance of its power is paramount and the UK must start to produce all it's own power needs and a back up.. Relying on other countries for power is foolhardy and bad future planning, which sadly the UK suffers from in abundance .. Another power plant built but fully controlled by Brits is the future ... Maybe a dam or a few small dams built somewhere in the UK producing the extra power needed on a constant basis.. Good positive Decisions for the future have to be made, are hundreds of windmills in the sea truly the answer and are they proven to be really cost affective and at a cost to every bill payer we are told to finance the windmills ... Which increases power bills and we still are a not UK full power producer... As a result... Just how many windmills will be needed now to be UK self sufficient and how many more to meet the needs in 15 years time... Seems that the amount will never be met just like the shortage of housing over the past 25 years has been another result of bad future planning. Other countries have bigger ideas like building an Airport by dredging and making an island in the sea .. Money is not really an issue because some are earning millions and avoiding tax, it is the system that wastes money and bad future planning means we are often behind the curve with some other countries... Get the UK self sufficient in power in the next 10 years.. Are windmills the real answer.. Or just a sticking plaster over a lack of power problem..

    Report this comment

    Lionel

    Thursday, February 26, 2015

  • £ 2billion to build ,will supply 500,00homes that's £4000 per home good deal for the constructors.Price guaranteed is at least 60% to high anything to look good.

    Report this comment

    David Gom

    Thursday, February 26, 2015

  • Yes Grey Fox I fear it is another example of being ripped off. Scottish Power is Spanish owned so all British taxpayers subsidies go to Spain...but then they are in such a bad way perhaps this is another example of the munificence of the hard pressed British power user. Lets hope that when we've given them all our money they might return the favour ...utter madness!

    Report this comment

    Edmund Allenby

    Thursday, February 26, 2015

  • Good to see some action at long last. Shame our electricity grid infrastructure is presently unable to cope with the future requirements. Countries in Europe are years ahead of us in terms of energy generation and future proofing particularly the Germans. They are also paying considerably less than us in terms of energy bills. Is this yet another instance where we are being ripped off in this country?

    Report this comment

    Grey Fox

    Thursday, February 26, 2015

  • rushallchap - I agree that nuclear has a legacy. It's something that needs to be tackled in a better way than currently. But the "green" alternatives have issues of their own - the amount of space they take up, the manufacturing process which isn't so green, their susceptibility to environment changes, etc. Before we rush blindly into taking up wind and solar farms because they're hailed as "green", their impact as a whole must be taken into account. We need some nuclear generation to back up the green methods, as coalgas has it's own carbon issues and hydro is no go in a lot of the UK. Given that the EU is imposing stricter recycling rates, Power From Waste is also less viable (especially with some of the plants with their proven exhaust problems). Nuclear is not the best, but it's one of the better choices for the medium term until (or if ever) we get fusion.

    Report this comment

    So_Many_Haters!

    Thursday, February 26, 2015

  • Rushall, as far as I am aware the cost of nuclear power covers decommissioning, etc. However the cost of wind power does not include the cost of back up gas generators which have to built and maintained on stand by for when there is the wrong type of wind or not enough sun. Meanwhile Germany is building coal fired power stations which do not have the theoretical carbon capture. Obviously they have a different sort of climate change over there. Or perhaps they are more concerned with practicalities over there rather than our PC type approach?

    Report this comment

    andy

    Thursday, February 26, 2015

  • so_many_haters - I'm no fan or plastering the country with windfarms or anything for that matter. A sensible approach is to have a balanced mix of a range of sources. The area I do take issue with you on is the environmental impact of building a running turbines. It's a bit of a nuisance to transport big things around and they are made out of materials which gives them some embodied energy. But so does nuclear, much, much, much more and it leaves a pretty nasty legacy for a very long time. Typically spent nuclear fuel is stored at the power plant is huge pools for 20-40 years before it is even 'safe' enough to process for storage (it's worth bearing in the half life of plutonium-239 is 24,000 years) !! which all needs to be managed and paid for. I'm not saying it's not an important part of the mix but it does have significant legacy issues that we cannot pretend don't exist.

    Report this comment

    rushallchap

    Thursday, February 26, 2015

  • My figures were taken from government published figures in 2010 and 2012. Yes, it meant to be read as "Megawatt Hours". Please explain, in words of one syllable for this poor schoolboy, what is wrong with those figures? They were, according to the reports, based on project life costs, so included the decommissioning as well as project inception costs. From the DECC Electricity Generation Costs (December 2013), nuclear is £90Mega Watt Hour, onshore wind £101Mega Watt Hour, biomass £108Mega Watt Hour, offshore wind £122 to £129Mega Watt Hour and large scale solar PV £158Mega Watt Hour. Where do you get YOUR figures from? Do you even HAVE figures?

    Report this comment

    So_Many_Haters!

    Thursday, February 26, 2015

  • Goneaway you are so very disrepectful and dismissive of So Many Haters. Perhaps with your superior knowledge you can enlighten all of us with ' your' facts. Personal attacks have no place on this site.

    Report this comment

    norman hall

    Thursday, February 26, 2015

  • @So_Many_Haters! - Gosh, '£119 per milliWattHour for offshore wind' - that really is expensive, isn't it? Or did you mean 'MegaWat't? And why should anyone take the blindest bit of notice of someone who makes such basic schoolboy errors? (Your figures are deeply erroneous, by the way, but I believe we've had this conversation before. As I pointed out at the time, you can have your own opinions, but you can't have your own facts. You seem not to have taken this on board. Oh, well.)

    Report this comment

    GoneAway

    Thursday, February 26, 2015

  • Let us hope that this scandlous wind farm scam is on the wane. They are ugly, inefficient but great money spinners for the lucky few. Have a bad feeling that East Anglia is about to be buried under acres and acres of solar panels. The windfarm replacement scam.

    Report this comment

    norman hall

    Thursday, February 26, 2015

  • Compare the £119 per mWh for offshore wind (with actual cost estimates by a government report in 2012 as £103 to £113 per mWh) with £73 per mWh for nuclear. So, it's a 50% premium for wind, which is variable in output and has high maintenance costs as well as a big environmental impact in the built and running.

    Report this comment

    So_Many_Haters!

    Thursday, February 26, 2015

  • I do wish the edp would stop spouting the government propaganda on such matters. The amount of tax payers money thrown at so called renewable energy that 'could' power so many houses, if there is the right type of wind and the sun is shining, means according to past government figures a higher cost for energy for all of us. In the meantime Germany has concerns that their high level of solar energy may cause a supply problem during the forthcoming eclipse!

    Report this comment

    andy

    Thursday, February 26, 2015

  • Since so much work has already gone into East Anglia One it is great that the project is now secure and will go ahead.

    Report this comment

    Port Watcher

    Thursday, February 26, 2015

The views expressed in the above comments do not necessarily reflect the views of this site

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