About the development process
After extensive environmental assessment and stakeholder engagement, Moray East Offshore Wind Farm secured planning consent in 2014. In order to reduce costs, in 2013 the UK Government introduced an auction system to support renewable development: only the projects supplying the lowest-cost energy were awarded a ‘contract for difference’ (CfD). Moray East Wind Farm engaged in a comprehensive approach toward developing the most competitive project possible, reducing costs at every stage: from materials and installation to design and financing. This delivered a world-leading cost reduction that won a CfD in the 2017 auction with a bid price of £57.50/MW per hour – two-thirds lower than comparable neighboring infrastructure. Moray East reached financial close in December 2018.
Moray East Offshore Wind Farm is currently under construction, with facilities at Invergordon and Nigg used as onshore intermediate construction ports. A new quayside facility at Fraserburgh will provide a bespoke operations and maintenance base, together with local jobs and economic opportunities for the project’s operational lifetime.
At a time when political attention is drawn increasingly to global warming and the climate emergency, Moray East will reduce CO2 emissions by more than 1.4 million tons per annum.
Moray East Wind Farm Vital Statistics:
- 950 MW;
- 100 turbines;
- Three offshore substations;
- Power for 950,000 households;
- CO2 savings of 1.4 million tonnes per annum.
Moray Offshore Windfarm East Ltd (MOWEL) is a joint venture owned by Diamond Green Limited (33.4%), EDPR (33.3%), ENGIE (23.3%) and CTG (10%).
The project financing agreements were signed on 28 November 2018 with a syndicate of commercial banks alongside EKF (Export Credit Agency, Denmark) and JBIC (Japan Bank for International Cooperation).
Funding consists of both project finance, which includes a senior debt facility of £2.1 billion along with other debt facilities of £0.5bn, and an equity bridge loan to cover part of the equity requirements. Financial close was on 6 December 2018.