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World's biggest offshore windfarm approved as prices drop to record low

Joseph Flaig

Stock image (Credit: VladCa/ iStock)
Stock image (Credit: VladCa/ iStock)

The government has awarded the contract for the world’s biggest offshore windfarm as wind energy price drops to record low.

Dong Energy will build the 1,386MW-capacity Hornsea Project Two windfarm in the North Sea, 89km off the Yorkshire coast. The farm, which is expected to power more than 1.3 million homes from 2022, will surpass Dong’s Hornsea Project One to become the biggest offshore windfarm, said the Danish company.

The new project will support more than 2,000 jobs during construction, with up to 130 permanent jobs during its lifetime of up to 25 years.   

The announcement is “another important step towards fulfilling our vision of making offshore wind the most competitive form of electricity generation,” said Dong wind power chief executive Samuel Leupold.

The contract equates to a cost of £57.50 per MWh, half the cost of allocations made just two years ago. Larger projects, bigger turbines and better cables are all driving down the price of wind energy and Dong UK managing director Matthew Wright also praised “successive governments” for continued investment.

The cost per MWh is now lower than prices for nuclear energy. The “strike price” for the delayed new Hinkley Point C power station in Somerset is set at £92.50 per MWh.

“This is a breakthrough moment for offshore wind in the UK and a massive step forward for the industry,” said Wright. “Not only will Hornsea Project Two provide low-cost, clean energy to the UK, it will also deliver high-quality jobs and another huge boost to the UK supply chain.”

The Dong agreement was the largest of 11 new energy projects confirmed today. The windfarms, waste and biomass treatment projects will generate more than 3GW of electricity – enough to power 3.6 million homes, said the government.

“This government will continue to seize these opportunities as the world moves towards a low-carbon future, and will set out ambitious proposals in the upcoming Clean Growth Plan,” said minister for energy and industry Richard Harrington. 

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