Moray East commences offshoreConstruction works on 950MW wind farm

24/05/19, 9:48 AM

Moray Offshore Wind Farm (East) Limited (known as Moray East) announced that it had commenced offshore construction work on its windfarm of 100 turbines with a generating capacity of 950MW.

The first part of the offshore works consists of the installation of sub-sea piles – an integral part of the jacket-based foundations on which the turbines will later be installed.

DEME Offshore, part of DEME Group, said its installation ‘jack-up’ vessel ‘Apollo’' together with the first batch of piles have arrived in the Outer Moray Firth and begun the first part of a two year campaign to construct the total foundation systems for 100 MHI Vestas V164-9.5MW turbines and the three offshore substations that will make up the windfarm.

‘Apollo’ was being made ready in the Port of Cromarty Firth with a purpose-built piling template which will be used to install the ‘foundation piles’ of the windfarm.

Marcel Sunier, Project Director for Moray East said:  “After nine years of planning and development, this major milestone moves the project from concepts and plans on paper to the reality of steel in the ground offshore.

“I look forward to working with our partners to deliver safely and efficiently, a major generating asset capable of supplying the equivalent of more than 950,000 households with low-cost, low-carbon electricity.”

The storage of the piles and the piling template are part of a deal worth over £1m to the Port of Cromarty Firth, including shipping revenues.

It will be followed next year by an 18-month contract directly with Moray Offshore Windfarm (East) Ltd, worth £10m announced last November, to provide storage of wind turbine components including towers, blades and nacelles for pre-assembly and shipping to site.

Bob Buskie, Chief Executive of the Port of Cromarty Firth, said: “This is a major project and a significant contract for the Port and the Highland region. It shows the faith a business the size of DEME Group has in our storage and delivery capabilities.

“The Moray East Offshore Windfarm development is of huge importance to both Scotland and the renewable energy sector. We are proud to be a part of that, helping to deliver clean energy to this wonderful part of the country.

“It shows the success of the Port’s diversification strategy, and the Firth’s proven track record of delivery in the offshore wind sector is now leading to further discussions at Government level which could attract additional investment to the region.

“In the future we hope our own development plans – especially for our new £31m Energy and Cruise Hub – will help open up the Port and allow it to accommodate even more large-scale projects from across all sectors.”

Once the piles installation programme is completed, its specialist DP3 offshore installation vessel Orion would continue next year the work by installing the 103 ‘jackets’ that form the other foundation components.

Other firms involved in the piling phase include Burntisland Fabrications Ltd, which is supplying 150 of the pin piles and PSG Marine & Logistics Ltd, which will manage the onshore handling works at the marshalling harbour.

Notes To Editors

Moray East Project Statistics

  • Capacity: 950MW
  • Location: UK, Moray Firth, closest point to shore, 22km from shore.
  • Turbines: 100 V164 – 9.5MW
  • Power for average requirements of ca. 950, 000 UK homes
  • Moray East will generate sufficient electricity to save 1.4 million tonnes CO₂ equivalent annually (assuming displacement of gas generation)
  • Power will be generated at £57.50/MWhr, the lowest cost of any new renewable generation and 2/3 less than offshore windfarms in operation around the UK today (typically upward of £140/MWhr).

Moray East Project Ownership & Finance

The 950MW wind farm is being developed by Moray Offshore Windfarm East Ltd (MOWEL), which is a joint venture company owned by Diamond Green Limited (33.4%), EDPR (33.3 %), ENGIE (23.3%) and CTG (10%).

The project financing agreements were signed on 28th November 2018 with a syndicate of commercial banks as well as EKF, Denmark’s Export Credit Agency (“EKF”) and the Japan Bank for International Cooperation (“JBIC”). The financing is composed of both project finance, which includes a senior debt facility of £2.1 billion, along with other debt facilities of £0.5 billion, and an equity bridge loan facility to cover part of the equity needs. Financial close occurred on 6th of December 2018.

In September 2017, MOWEL was awarded a 15-year Contract for Difference (CfD) by the UK’s Department for Business, Energy & Industrial Strategy (“BEIS”) for the delivery of 950MW of offshore wind generation at £57.5/MWh (2012 tariff-based). The wind farm is expected to be operational by 2022.

Moray East Project Timeline

  • 2010 – project development commenced when development rights were won in the UK’s 3rd round of offshore wind licencing. The Moray Firth Zone (Zone 1) was split into two, Moray East and Moray West.   For technical reasons, Moray East was developed first.
  • 2014 – planning consent was awarded by the Scottish Government (offshore works) and Aberdeenshire Council (onshore works).
  • 2017 – A 950MW Contract for Difference (CfD) was won in the UK Government’s 2nd competitive CfD auction. The CfD provides a contract for electricity for 15 years at £57.50/MWhr.
  • 2018 – project announced signing of finance agreements and achieves financial close.
  • 2019 – 2022 – construction & commencement of operation.

Moray East Key Facts

  • Consent for construction of up to 1,116MW granted in 2016
  • CfD for 950MW awarded in 2017
  • Connection to National Grid at a new substation to be constructed at New Deer in Aberdeenshire via underground cable (planning permission granted by Aberdeenshire Council in 2014)
  • Total underground export cable corridor route 86km (52km offshore and 34km onshore)
  • Total wind farm Area – 295km2
  • Maximum turbine blade-tip height – 204m (669 feet)
  • Minimum distance from shore – 22km (13.5 miles).