SSE PLC UK Contracts for Difference Allocation Round 5 (8576L)
RNS Number : 8576L
08 September 2023
UK CfD Allocation Round 5
UK Contracts for Difference Allocation Round 5
8 September 2023
SSE Renewables has today, 8 September 2023, been informed that
Aberarder Wind Farm, Bhlaraidh Wind Farm Extension, Strathy South
Wind Farm, and Viking Energy Wind Farm have been successful in the
UK's fifth Contracts for Difference (CfD) Allocation Round and are
set to be awarded low-carbon power contracts for a total of
The successful projects will receive the guaranteed strike price
of GBP52.29/MWh, based on 2012 prices but annually indexed since
then for CPI inflation, for the contracted low carbon electricity
they will generate for a 15-year period from the 2027/28 delivery
The projects' success in securing contracts follows the UK
Government's Allocation Round 5 process in which the projects
competed in 'Pot 1' alongside various technologies including
offshore wind, hydro, energy from waste with CHP, and solar
Aberarder Wind Farm project, which SSE Renewables acquired in
October 2022, has secured a CfD for 49.99MW (100% of total
capacity). The project, adjacent to the operational Dunmaglass wind
farm (SSE share 51.1%) in Strathnairn near Inverness, was granted
planning consent in April 2017.
Bhlaraidh Extension Wind Farm project, which was granted
planning consent in August 2022, has secured a CfD for 100.8MW
(100% of total capacity).
Strathy South Wind Farm project, granted planning consent by the
Scottish Government in November 2021, has secured a CfD for 231MW
(100% of total capacity).
Aberarder, Bhlaraidh Extension and Strathy South will all be
targeting final investment decisions in 2024.
Finally, the 443MW Viking project, located in the Shetland
Islands, has secured a CfD for 223.6MW (50% of total capacity) .
This award follows success in Allocation Round 4 where Viking
secured a CfD for 220MW (50% of its total capacity) at a strike
price of GBP46.39/MWh (based on 2012 prices) for the 2026/27
delivery year. Construction work on the project is progressing well
with all turbines now installed and, with commissioning works set
to continue over the next year, remains on track for completion in
late-summer 2024 .
Once completed, these projects will make an important
contribution to the delivery of SSE plc's Net Zero Acceleration
Programme Plus, a fully funded five-year investment plan to 2027
which will see the Group invest GBP18bn or almost GBP10m a day on
critical national infrastructure. This plan includes increasing SSE
Renewables' net capacity from 4GW currently to more than 9GW, with
around 3GW currently under construction.
Stephen Wheeler, Managing Director for SSE Renewables, said:
"We are pleased to have secured onshore wind contracts for
Aberarder, Bhlaraidh Extension, Strathy South, and Viking. Onshore
wind, like offshore, is a critical component of the net zero
transition with an essential role to play in decarbonising the UK's
"The CfD scheme has been a hugely successful mechanism for
deploying renewable energy, but going forward, changes to the
framework for offshore wind are required to ensure the UK can
enhance its energy security whilst keeping costs low. Even at
higher strike prices than AR5, wind power will still be far cheaper
than other technologies while also delivering highly skilled green
jobs and associated inward investment.
"The good news is that we now have a window of opportunity to
ensure that the next auction round can bring forward the
significant volumes of both onshore and offshore wind we need to
achieve our energy security targets, unlock billions of pounds of
investment, and enable the UK to retain its global leadership
position in renewables. We stand ready to make these investments
and look forward to working constructively with the Government to
build on our past successes."
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact firstname.lastname@example.org or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
(END) Dow Jones Newswires
September 08, 2023 03:35 ET (07:35 GMT)
Historical Stock Chart
From Nov 2023 to Dec 2023
Historical Stock Chart
From Dec 2022 to Dec 2023