UK CfD Allocation Round
6
SSE plc
UK Contracts for
Difference Allocation Round 6
3 September 2024
SSE has today, 3 September 2024, been informed
that Cloiche Wind Farm has been successful in the UK's sixth
Contracts for Difference (CfD) Allocation Round and is set to be
awarded a low-carbon power contract for a total of
130.5MW.
Cloiche will receive the guaranteed strike
price of £50.90/MWh, based on 2012 prices but annually indexed
since then for CPI inflation, for the contracted low-carbon
electricity it will generate for a 15-year period following
delivery year 2027/28. The project has secured a CfD for 130.5MW,
100% of total capacity.
Securing a route to market for Cloiche ensures
it can receive a guaranteed income for the renewable energy it can
produce during the lifetime of the contract and for a significant
part of its operational life.
Cloiche, which was granted consent in November
2023, is in late-stage development and will be targeting final
investment decision in 2025.
Stephen
Wheeler, Managing Director for SSE Renewables,
said:
"We are
delighted Cloiche has been successful in AR6. Securing a route to
market will enable us to progress the project which is critical to
delivering new homegrown green energy for the UK.
"But there is
much more to do if the UK is to meet its ambitious clean power
target by 2030, which requires a quadrupling of offshore wind
capacity.
"At SSE
Renewables, we are waiting for consent from the Scottish Government
for Berwick Bank, which at 4.1GW would be one of the world's
largest offshore wind farms and would make the single biggest
contribution to the achievement of both the Scottish and UK
Governments' offshore wind targets.
"Ensuring
mission-critical projects like Berwick Bank get consent quickly and
designing the next offshore auction round to deliver over 10GW of
offshore wind will give the transition to clean power by 2030 the
significant boost it clearly needs."