'Challenging' | How SSE plans to deliver 4GW Berwick Bank amid offshore wind costs storm

SSE Renewables is counting on deeper supply chain partnerships to cope with cost pressures and bottlenecks as it lays plans to rapidly move ahead with one of the world's largest planned offshore wind farms, the 4.1GW Berwick Bank in Scotland’s Firth of Forth.

The UK offshore wind developer applied last December for planning consent to build what will be its biggest offshore wind farm so far and expects to get the green light before the end of the year, according to project director Alex Meredith.

Berwick Bank was originally part of the greater Seagreen area where seabed rights were acquired by SSE in 2010, and represents a merging of two zones formerly known as Seagreen Charlie and Delta.

SSE finally submitted its application for planning permission to Scottish authorities last December kick-starting a process that usually takes between 12 to 15 months.

Now's the time

With agreements in place for AC (West Lothian) and DC (Northumberland) grid connections, SSE expects to be able to bid Berwick Bank’s power into a UK contract-for-difference (CfD) auction next year.

SSE is planning for a site with up to 307 turbines with a blade diameters of 250-300 metres and a capacity range of 16-24MW per machine specified in the planning application.

With 150-metre high steel jackets also specified, the company is trying to engage early on questions of supply and logistics in what Meredith says will be a “massive, massive feat” of engineering.

Supply chain constraints

Such challenges have spurred SSE to consider a response to the supply chain constraints now affecting the offshore wind sector, including looming bottlenecks for installation vessels.

“Since we started really progressing this project supply chain costs have increased. Inflation and demand have been pushing prices in the wrong direction. so we are working very constructively with the supply chain to get the best value,” Meredith said.

“There are factors in the supply chain in the moment, which make that very challenging,” he admitted.

One answer to these challenges, he adds, is building on relationships formed working together on past projects to deepen partnerships with suppliers and contractors.

“We have been in this space for 20 years and have seen the ups and downs of costs and supply chain constraints. When offshore wind was first being developed, no one had the vessels in the supply chain to be able to do it, so we worked with companies to do that,” Meredith said.

“The current cycle is one where the supply chain is looking for volume to secure big slots, commitments and investments. That volume can be delivered through frameworks, so it is definitely a good time to be having those kind of conversations,” he said.

An added pressure is that SSE has made firm commitments toward bringing some of the supply chain manufacturing facilities to Scotland, although it is already clear that little of the steel work for the jackets will be done in the UK.

“This is an exciting opportunity for Scotland… The scale of this project means we can look at investment manufacturing capabilities and so on, Meredith said.

Swift moving

Moving swiftly with Berwick Bank is increasingly important, however, as the company is targeting a phase of delivery which is between some of the big projects that are already happening, and some of the future ScotWind projects in the North Sea.

“The (Berwick Bank) project is a little bit unique in that it is one of the few projects that can deliver before 2030,” Meredith said.

“The Scottish government have consistently said they want to deliver this decision in the timeframes that we need it. The target for this process is nine months… as a big complex application we recognise that it may take a bit longer than that, but we'd like to see a decision within a year,” he added.

A growing number of overseas opportunities is also helping to underpinning supply chain partnerships with longer project pipeline for SSE. The shift toward overseas growth is also spurred by auction conditions in mature and highly competitive UK market, as well some continued uncertainty over consenting them Meredith admits.

“Competition for delivery is very fierce in the UK. This is a good thing and a sign of success in terms of delivering value to consumers. To continue delivering value to both consumers and shareholders, there's an opportunity to look more globally to different jurisdictions," he said.

Although the US market has moved more slowly than was anticipated, Meredith described this jurisdiction as a “huge, huge opportunity”, and he also singled out the Netherlands and Japan as key growth markets.

“But our key focus at this point is delivering the projects in the UK that are in different stages of application, construction and development,” he said.

Seagreen story

The first power connection for Berwick Bank is slated for 2027 and the delivery period is expected to run to 2029.

The conclusion of the planning application is likely to follow closely on the heels of delivery of the last working wind turbine to the Seagreen project.

Seagreen stands out in the UK because SSE allocated only around 40% of capacity to the government-supported contract for difference and seeking better returns from a merchant tail for the rest.

“Broadly, we looked at where prices were going and the nature of the competition in that auction and thought that if we put the whole project at the level of CfD we’d get we would risk losing out,” recalls Alexandra Malone, director of corporate affairs at SSE.

SSE also refrained from submitting any CfD price for the 360MW Seagreen 1A extension last year after assessing that the strike price had become too low to make the project viable

Malone said SSE is looking to next year’s renewables auctions in the UK for possible opportunities, depending on the rules, while also looking to alternative route to markets. “This one is a bit smaller so it might be a bit easier to get a PPA,” she said.

“They are on different tracks. Berwick Bank is going to be one of our future flagship projects and we hope to get cracking on that soon,” Malone added.