SSE secures 20-year contract win in UK's Contracts for Difference Allocation Round

(Sharecast News) - Energy firm SSE has successfully secured a 20-year contract for 1.4 gigawatts of low carbon offshore wind power from Phase B of its Berwick Bank Wind Farm project in the UK's seventh Contracts for Difference Allocation Round. SSE said on Wednesday that Berwick Bank B will receive a guaranteed strike price of £89.49/MWh for 1,380 megawatts of offshore renewable energy capacity for the contracted low carbon electricity it will generate for a 20-year period.

The FTSE 100-listed group said it will now progress the project towards a final investment decision in line with hurdle rates and investment criteria, expected in 2027.

Following the contract win, SSE said the remaining two A and C phases of Berwick Bank were available for entry into upcoming auction rounds, with the UK's eighth CfD allocation round expected towards the end of 2026. The three phases of Berwick Bank Wind Farm will total 4.1GW.

Chief executive Martin Pibworth said: "If built to its full projected capacity of more than 4GW, Berwick Bank Wind Farm can rank among the largest offshore wind projects globally. It would represent the single most significant contribution toward achieving the Scottish and UK Governments' offshore wind targets and can accelerate the delivery of homegrown, affordable and secure clean energy to UK consumers from excellent Scottish offshore wind resources."

As of 1120 GMT, SSE shares were up 1.20% at 2,277p.

Reporting by Iain Gilbert at Sharecast.com