Masdar JV awarded contracts for North Sea wind projects

A joint venture between the UAE’s Masdar and Germany’s RWE has secured contracts for difference for its two Dogger Bank South projects in the North Sea in the UK’s latest offshore wind auction.

The contracts for difference – a government scheme to support low-carbon electricity generation that guarantees a fixed price for supply of power – were awarded at a strike price of £91.20 ($122.60) per megawatt hour.

Dogger Bank South comprises two 1.5-gigawatt projects, DBS East and DBS West, together forming one of the UK’s largest offshore wind projects currently under development, Masdar said in a statement.

Worth £11 billion, the projects will strengthen UK energy security, accelerate power sector decarbonisation and support regional supply chains, it added.

Upon completion, the projects will be capable of producing electricity for the equivalent of 3 million UK homes annually. 

Masdar (49 percent) and RWE (51 percent) joined forces in December 2023 to deliver Dogger Bank South. 

RWE is leading the development, construction and operation, the statement said.

DBS West is expected to be commissioned in 2031, while DBS East will become operational a year later.

Masdar’s UK portfolio includes a €5.2 billion co-investment with Iberdrola in the 1.4GW East Anglia Three offshore wind project, as well as stakes in the London Array Offshore Wind Farm (630MW) and the Dudgeon Offshore Wind Farm (402MW).  

In December, Masdar began commercial operations at its battery energy storage system facility in Stockport, its first project under its £1 billion ($1.33 billion) investment in the UK.

• UAE’s Masdar to develop its first solar plant in Angola
• Masdar to invest in Austria’s largest hydrogen project
• Masdar IPO could help accelerate Gulf’s energy transition

Masdar chairman Sultan Al Jaber said this week that the company has reached a global capacity of 65GW of clean energy and is targeting 100GW by 2030.

The UAE has pledged to reach net-zero emissions by 2050 and is seeking to diversify its economy away from dependence on fossil fuels.

The company has developed and partnered on projects in more than 40 countries, cutting 14 million tonnes of carbon dioxide per year. The state-backed company is held 43 percent by Abu Dhabi’s state-owned Taqa, 33 percent by Mubadala and 24 percent by Adnoc.