ScottishPower Renewables is set to invest £2.5bn on its East Anglia ONE offshore wind farm project in the UK.
The final investment decision indicates that the company is now fully committed to the development and construction of the project.
The investment includes a £25m deal signed between ScottishPower and the Port of Lowestoft, which will serve as the home of the wind farm for more than 30 years during construction and operation phases.
The 714MW wind farm will generate sufficient electricity to power 500,000 households or the majority of the households in Suffolk and Norfolk.
The project is expected to be operational by 2020, and will create up to 3,000 jobs during the construction phase.
ScottishPower said that the new project is the most cost efficient offshore wind farm to be built. The project has secured a price contract of £119/MWh through a competitive auction process run by the UK government, which is over 15% lower compared to other UK offshore wind projects.
ScottishPower Renewables East Anglia ONE project director Charlie Jordan said: “East Anglia has some of the best conditions anywhere in the world for the development of offshore wind, and we are fully committed to the region, with future developments already in the pipeline.
“ScottishPower Renewables is leading the way with its approach of actively working towards a target of at least 50% UK supply chain content over the lifetime of the East Anglia ONE project. We have already worked with a wide range of companies across East Anglia and we look forward to working with many more.”