Ørsted signs one of the world's largest route-to-market agreements with Dogger Bank
Ørsted has signed an agreement with Dogger Bank Wind Farm under which Ørsted will be responsible for the trading and balancing of 40 % of the power generated from the first two phases of the 3.6 GW wind farm.
Ørsted will trade and balance 960MW of renewable power production from the 2.4GW of installed capacity at Dogger Bank Wind Farm A and B on the power market on a day-ahead basis and will handle the intra-day fluctuations in volume and prices balancing the power into the grid. Ørsted's market exposure is limited to fluctuations in power prices on a day-to-day basis.
The contract between Ørsted and Dogger Bank Wind Farm is the largest route-to-market agreement to date for a renewable project signed in a competitive tender process in the UK market.
Morten Buchgreitz, Executive Vice President and CEO of Ørsted Markets & Bioenergy, says:
"We're very pleased with the signing of this agreement which underlines our position as a leading energy trading company in the UK. Handling a 15-year trading agreement with the Dogger Bank Wind Farm is indeed in line with our vision to create a world that runs entirely on green energy. We're very much looking forward to our cooperation."
Steve Wilson, Dogger Bank Wind Farm Project Director at SSE Renewables, says:
"Today's announcement that we've concluded an offtake power purchase agreement with Ørsted for Dogger Bank A and B marks one of our final milestones ahead of soon reaching financial close for what will be the world's biggest offshore wind farm. These agreements with leading energy trading companies will ensure the renewable energy generated by the first two phases of Dogger Bank Wind Farm can be sold into the UK electricity market, delivering on our promise to power millions of British households with green energy."
Halfdan Brustad, Vice President for Dogger Bank at Equinor, said:
"We're delighted to announce offtake agreements for Dogger Bank A and B. Despite the current global challenges, the project is really moving forwards, and this tangible milestone brings us one step closer to financial close. Large-scale renewable energy projects like Dogger Bank aren't only crucial for the UK to reach its net zero ambitions, the project will bring many economic benefits to the UK in terms of jobs and supply chain opportunities. We're proud to be contributing to a just energy transition and supporting the government's ten point plan for a green industrial future."
The Dogger Bank Wind Farm, which is owned by SSE Renewables (50 %) and Equinor (50 %), will be located 130 km off the coast of Yorkshire in the UK. It consists of three phases (Dogger Bank A, B, and C) which each accounts for 1.2 GW. Ørsted will offtake power from the first two phases, Dogger Bank A and Dogger Bank B.
The agreement is subject to financial close on Dogger Bank A and Dogger Bank B, which is expected soon.