British energy company SSE has secured a 20-year contract for 1.4GW of offshore wind power from Phase B of its Berwick Bank Wind Farm project in the UK’s seventh Contracts for Difference (CfD) Allocation Round, the company announced Wednesday.
The Berwick Bank B project will receive a guaranteed strike price of £89.49/MWh for 1,380MW of renewable energy capacity, based on 2024 prices and indexed annually for CPI inflation. The contract covers a 20-year period for the electricity generated.
SSE plans to progress the project toward a final investment decision, expected in 2027, according to the company’s press release.
The Berwick Bank Wind Farm consists of three phases totaling 4.1GW capacity. Following this contract for Phase B, the remaining two phases (A and C) are available for entry into upcoming auction rounds, with the UK’s eighth CfD allocation round expected later this year.
“We are delighted Berwick Bank B has been successful in AR7 and has secured a CfD for 1.4GW of essential new low-carbon power for the UK at a competitive price for consumers,” said Martin Pibworth, Chief Executive of SSE plc.
If built to its full projected capacity of more than 4GW, the company claims Berwick Bank Wind Farm would represent a significant contribution toward achieving the Scottish and UK Governments’ offshore wind targets.
The Contracts for Difference scheme is the UK government’s main mechanism for supporting low-carbon electricity generation, providing developers with protection from volatile wholesale prices.
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