Vattenfall has signed a deal with Vestas for three UK wind projects following changes to the country’s Contracts for Difference (CfD) auction round.
Vattenfall and Vestas have signed exclusivity agreements for the Norfolk Vanguard East and Norfolk Boreas projects. These sites will have a total combined capacity of 2,760 MW.
These two will potentially feature up to 184 V236-15 MW turbines.
Earlier this year Vattenfall called off its development of the Norfolk Boreas project due to rising costs.
At the time, the firm said that Norfolk Boreas would have a SEK 5.5 billion impact on earnings, as costs increased “up to 40%.”
The contract also includes a preferred supplier agreement (PSA) for the 1,380 MW Norfolk Vanguard West project, comprising of 92 Vestas’ V236-15 MW offshore wind turbines.
Once installed, the deal includes that Vestas will service the projects under long-term Operations and Maintenance (O&M) service contracts.
Henrik Andersen, chief executive and president of Vestas, said: “The agreements are the result of close and positive negotiations between two partners as well as the positive changes the UK Government has announced for next year’s auction.
“By listening to industry concerns, the UK Government has positioned the UK for success within the offshore wind industry.
“I want to thank the UK Government for its regained leadership and everyone at team Vattenfall and team Vestas for making today’s announcement possible.”
In November the UK government increased the prices available for offshore wind in next year’s CfD auction round following disappointment.
This year’s CfD awards, the government’s flagship scheme for renewable energy procurement, saw no successful bids for offshore wind as the price was too low, forcing it to compete with cheaper technologies.
In the next CfD round, the price will see a 66% increase in order to avoid repeating the same mistakes as the government looks to attract further investment in the space.
The price has jumped from £44/MWh to £73/MWh, and gone up by 52% for floating offshore wind projects, from £116/MWh to £176/MWh ahead of Allocation Round 6 (AR6) next year.
Helene Bistrom, head of business area wind at Vattenfall, commented: “The agreement with Vestas is another important milestone for the Norfolk Offshore Wind Zone.
“Vestas is a long-standing partner of Vattenfall, and we thank them for their continued engagement.
“The Norfolk Zone will play a vital role in the UK’s energy transition as well as bringing investment into the sector and the region.”
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