REG - SSE Plc - UK CfD Allocation Round 4–Viking Energy Wind Farm

SSEAnnouncement

07/07/2022 07:16

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RNS Number : 6556R  SSE PLC  07 July 2022

 

SSE plc

UK Contracts for Difference Allocation Round 4 - Viking Energy Wind Farm
Results

7 July 2022

 

SSE Renewables has today, 7 July 2022, been informed that its wholly-owned
Viking Energy Wind Farm (Viking) has been successful in the UK's fourth
Contract for Difference (CfD) Allocation Round and is set to be awarded a
low-carbon power contract for 220MW.

Viking's success in securing a contract follows a competitive auction process
in Allocation Round 4 (AR4) where it competed within Pot 2 of the allocation
round set aside for 'less established' technologies including Remote Island
Wind.

The 443MW Viking project, which SSE Renewables is currently building in the
Shetland Islands, has secured a CfD for 220MW (50% of its total capacity) at a
strike price of £46.39/MWh for the 2026/27 delivery year. The successful
project will receive its guaranteed strike price, set on 2012 prices but
annually indexed for CPI inflation, for the contracted low carbon electricity
it will generate for a 15-year period.  Securing a CfD for Viking stabilises
the revenue from the project whilst also delivering price security for bill
payers.

Viking is progressing through construction with over 50 per cent of turbine
foundation bases poured. When complete in 2024, Viking will be the UK's most
productive onshore wind farm in terms of annual electricity output(^) with the
project also contributing to Shetland's security of supply by underpinning the
HVDC transmission link that will connect the islands to the mainland for the
first time.

Stephen Wheeler, Managing Director of SSE Renewables, said:
"We are delighted that Viking Energy Wind Farm has been successful in securing
a 15-year contract in the UK's fourth and highly competitive CfD allocation
round. Viking will be the most productive onshore wind farm in the UK when it
enters operation from 2024, and will play a crucial role in decarbonising
energy supply in the Shetland Islands as well as in Scotland.

"Through the delivery of onshore wind energy projects such as Viking, SSE
Renewables is helping drive the delivery of SSE's Net Zero Acceleration
Programme (NZAP) which will see the company double its installed renewable
energy capacity to 8GW by 2026 and increase our annual renewable energy output
fivefold to over 50TWh by 2031."

 

^ Most productive UK onshore wind farm claim based on projected total
generation output by Viking Wind Farm of 1,796.35 GWh per annum and a
comparison with the leading UK operational and in construction wind farms.

 

 

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