Scottish wind industry moves forward on and offshore

Oil major Total has entered into an agreement with SSE Renewables to acquire a 51% stake in the 1,140 MW Seagreen 1 offshore wind farm project, which has also reached financial close. The purchase agreement also covers a potential extension opportunity of up to 360 MW.

To be located 27 km from the coastline in Scottish waters of UK North Sea, Seagreen 1 has secured all necessary major permits and onshore construction began earlier this year – the project will start producing renewable electricity from the end of 2022. Once completed, it will be Scotland’s largest offshore wind farm.

‘This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity,’ said Patrick Pouyanné, Chairman & CEO of the company. As one of the main actors in the UK energy sector, Total will leverage its extensive expertise in offshore operations and maintenance to contribute to the success of the project alongside the country’s leading offshore wind developer, SSE Renewables.’

Seagreen 1 benefits from a 15-year Contract for Difference (CfD) awarded by the UK government for 454 MW, representing 42% of the total project capacity. An additional 30% of the project capacity will be contracted under a private CfD with the SSE Group.

Meanwhile, Crown Estate Scotland has launched the first round of offshore wind leasing in Scottish waters for a decade. The round, called ScotWind Leasing, will enable offshore renewables companies to apply to build a new generation of offshore wind farms to help power the transition to a net zero future.

Investors and developers are now able to register interest in obtaining an option agreement with Crown Estate Scotland. These can lead to the signing of leases to build offshore wind farms in one of the areas of seabed to be outlined as suitable by the Scottish government. The move should significantly increase the amount of power generated from offshore renewables – a major step towards meeting the Scottish government’s target of Scotland being net zero by 2045.

Moving onshore and to Shetland, SSE has approved a final investment ‘This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity’ Patrick Pouyanné, Total decision for the 103 turbine, 443 MW Viking onshore wind farm to be located in Shetland. Viking is wholly owned by SSE Renewables, having been developed in partnership with Viking Energy Shetland.

Viking will harness the excellent wind conditions in Shetland, which should result in an estimated load factor of around 48%, says SSE. Once built it will be the largest onshore wind farm in the UK in terms of electricity output, which is expected to be around 1.9 TWh each year.

SSE says it now awaits the outcome of the consultation on Ofgem’s potential approval of a 600 MW transmission connection from Shetland to the GB mainland, expected this month. Final approval from Ofgem was conditional on Viking wind farm reaching a positive final investment decision. The transmission connection is also critical for Viking to proceed.

Last, Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma has refused consent for Vattenfall’s 340 MW Thanet Extension offshore wind farm project off the Kent coast, apparently for shipping navigation reasons.