Denmark-based DONG Energy has won a contract to build its Hornsea Project Two offshore wind farm at the lowest-ever price for offshore wind in the UK.
With 1.4GW capacity, the Hornsea two wind power project is touted to be the world’s largest offshore wind farm.
Hornsea Project Two project will be set up 89km from the Yorkshire coast. Upon becoming operational in 2022, the wind farm project will generate enough electricity to power more than 1.3 million UK homes.
Having a life span of 25 years, the new project will create up to 2,000 jobs during construction phase with up to an additional 130 permanent jobs during the operational phase.
DONG said that the guaranteed price for the supply of has been reached set at 57.50 pounds ($75.81) per megawatt hour (MWh), which is 50% less than the allocations at auction two years ago.
DONG Energy executive vice president and CEO of wind power Samuel Leupold said: “We’re delighted to be awarded a Contract for Difference for Hornsea Project Two, which is another important step towards fulfilling our vision of making offshore wind the most competitive form of electricity generation.”
“We have always promoted size as a key driver for cost. The ideal size of an offshore wind farm is 800-1,500MW, and therefore it is natural that Hornsea Project Two will deliver record-low costs to society.
At the same time, the low strike price demonstrates the cost saving potential of developer-built offshore grid connections, which in the UK is included in the project scope.”
Separately, DONG Energy is currently constructing Hornsea Project One. The company has started the consultation process for Hornsea Project Three, underlining the massive potential of this area of the North Sea for offshore wind.