Norway’s state-controlled hydropower company Statkraft and Germany-based energy company Innogy have won a tender in the Contract for Difference (CFD) auction in the UK for their 860 MW Triton Knoll offshore wind power project.

The wind farm off the coast of Lincolnshire, England is expected to cost around £2bn in investment.

The 50:50 partnership won the tender from the UK Department for Business, Energy & Industrial Strategy (BEIS) during the latter’s second round of CFD auctions, at a price of £74.75 per megawatt hour.
Offshore wind farm
Innogy CEO Peter Terium said winning the UK auction is a major milestone for realizing the offshore wind power project while also proving that the company can prevail in a highly competitive market environment.

Terium added: “A large proportion of our planned investment in growth is intended to flow into renewable energies. Together with our grid and retail businesses, they will make Innogy the innovative, decentralised and sustainable energy company of the future.”

Following the tender win, the partners will move ahead in pushing for a final investment decision on the offshore wind project which is likely to be completed in mid-2018.

Statkraft CEO Christian Rynning-Tønnesen said: “As Europe’s largest generator of renewable energy, Statkraft plays a substantial role in driving forward developments in the renewables industry both in the UK and other markets around the world.”

“Our strong partnership with innogy has helped bring forward a cost competitive project that represents value for UK consumers, alongside ensuring future energy security. Investors will now be invited into the project.”

First power generation is expected from the Triton Knoll offshore wind project around mid-2021 while aiming to have the wind farm to be fully operational in 2022.