|
SSE PLC on Wednesday said it has secured a 20-year contract for 1.4 gigawatts of offshore wind power from phase B of its Berwick Bank wind farm, allowing the project to progress towards a final investment decision expected in 2027. The Perth, Scotland-based electricity generator said Berwick Bank B was successful in the UK’s seventh ’contracts for difference’, or CfD, allocation round, securing a guaranteed strike price of £89.49 per megawatt hour for 1,380 megawatts of capacity. The price is based on 2024 prices and will be indexed annually for consumer price inflation over the 20-year contract period. Following the contract award, SSE said it will now advance Berwick Bank B towards a final investment decision in line with its investment criteria and hurdle rates. SSE added that the remaining Berwick Bank A and C phases are eligible for entry into upcoming CfD auction rounds, with the eighth allocation round expected later this year. Combined, the three phases of the Berwick Bank project have a total planned capacity of 4.1 gigawatts. Chief Executive Martin Pibworth said: ‘This milestone enables us to advance the project towards a final investment decision. ‘If built to its full projected capacity of more than 4GW, Berwick Bank wind farm can rank among the largest offshore wind projects globally. It would represent the single most significant contribution toward achieving the Scottish and UK governments’ offshore wind targets.’ SSE shares opened 2.0% higher at 2,294.00 pence in London on Wednesday. The CfD award follows a record auction round in which the UK government awarded contracts for 8.4 gigawatts of new offshore wind capacity. While the latest round announced Wednesday saw higher strike prices than in previous years, the government said the contracts would help ‘reducing the UK’s exposure to volatile global fossil fuel markets, which have contributed to half of all recessions since the 1970s and in 2025’. UK Energy Secretary Ed Miliband said regarding the auction: ‘It is a monumental step towards clean power by 2030 and the price secured in this auction is 40% lower than the alternative cost of building and operating a new gas plant.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
