DONG Energy welcomes award of FID enabling contracts

DONG Energy today welcomed the news that three of the company's offshore wind farm development projects will be supported by Government-awarded financial investment decision (FID) enabling contracts.

DONG Energy has secured contracts for its Burbo and Walney Extension projects and the first phase of a project in the Hornsea zone. See details below. 

Walney Extension
  • Up to 660 megawatts
  • East Irish Sea as an addition to the existing Walney wind farm
Burbo Extension 
  • Up to 259 megawatts
  • South Irish Sea as an addition to the existing Burbo wind farm
Hornsea Project 1 (Heron Wind and Njord) 
  • Up to1.2 gigawatts
  • Around 100 kilometres from the coast of Grimsby.

About DONG Energy  
DONG Energy is one of the leading energy groups in Northern Europe. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. DONG Energy has around 6,500 employees - including over 500 in the UK - and is headquartered in Denmark. The Group generated DKK 73 billion (EUR 9.8 billion) in revenue in 2013. For further information, see
"We are delighted that we have been successful with all three of our FID contract applications we submitted to the UK Government," said Henrik Poulsen, Chief Executive Officer of DONG Energy. "These awards represent the successful conclusion of the Electricity Market Reform (EMR) process that has been ongoing over the last few years.  It shows that the UK is an attractive place to invest in offshore wind; not only for its great natural resources, but also because of the stable investment environment created by EMR. " 

Brent Cheshire, DONG Energy's UK Country Chairman, said: "These contracts will allow us to deliver over £5 billion of investment in the pipeline of projects we have in the UK.  They will enable continued growth and investment in the UK supply chain as well as making an important contribution to reducing the cost of offshore wind for the benefit of all consumers."

Subject to European Commission State Aid approval, the contracts will support the development of  DONG Energy’s  Burbo and Walney  offshore wind farm project extensions, as well as the first GW of the Hornsea project.

When operational, the three new projects will together be capable of supplying the electricity needs of almost two million UK homes.

FID enabling contracts were introduced by the Department of Energy and Climate Change  to bridge the gap between Renewable Obligation mechanism, which has operated since 2002, and the new Contracts for Differences arrangements which will shortly come into effect under the provisions of the Energy Act 2013.

The contracts are designed to avoid a hiatus in the phased introduction of electricity market reforms designed to attract the investment needed to replace the UK's energy infrastructure. They provide companies like DONG Energy with enough certainty to make final investment decisions on its projects.

Final implementation of the FID contracts will be subject to State Aid approval from the European Commission.  
Contact us

For additional information, please contact Sustainability

Ulrik Frøhlke +45 9955 9560