Iberdrola says to enter £6.5 billion offshore wind energy project in British subsidy auction

Iberdrola will enter a 6.5 billion pound ($8 billion) offshore wind power project in Britain’s renewable auction next year, the company’s offshore wind energy head told Reuters.
Britain, the world’s largest offshore wind energy market accounting for around 40% of global capacity, plans to generate more than a third of its electricity from the technology by 2030 in a bid to achieve net zero carbon emissions by 2050.

Iberdrola’s East Anglia (EA) hub project comprises three projects off the east coast of England, capable of generating a total of 3.1 gigawatts of electricity, which would make it one of the largest offshore wind farm in the world.

Under Britain’s contract for difference (CfD) scheme, qualifying projects are guaranteed a minimum price at which they can sell electricity. Renewable power generators bid for CfD contracts at auction.

“The plan is to have all of the projects fully consented in Q1 (2021)… ready to bid into the auction later in the year as the combined hub,” Jonathan Cole, Managing Director, Iberdrola Renewables Offshore Wind said in an interview.

Cole added that the project could still go ahead, even if it is unsuccessful in the auction.

“We believe super-scale developments like EA Hub will be key to Europe’s decarbonisation plans, whether it sells power via government-backed contracts or private power sales arrangements. We are looking at all options.” he said.

Construction on the wind farm could start in 2022 and will take around four years to complete.

Iberdrola is already developing the East Anglia One wind farm in the same region and Cole said the last of the 102 wind turbines was installed last month.

The 714 megawatt wind power project will be fully operational in the next few months, he said.