Returns intact? SSE quizzed over profits hit from delays at world's largest offshore wind farm

The 1.2GW Dogger Bank A project – first part of the world’s largest offshore wind farm under construction – will not be fully operational until the first half of 2025, up to a year later than originally planned, UK utility SSE acknowledged today (Wednesday).

The project has been impacted by “challenging North Sea weather, installation vessel availability and supply chain delays”, according to an SSE earnings report for the financial year running to March 2024.

SSE said it does not expect the delays to Dogger Bank A to push returns on equity below the double-digit parameters set when the company and partners reached a final investment decision three years ago, financial analysts were told in an earnings call.

All of the Dogger Bank A monopiles and transition pieces have now been installed and installation of the wind farm’s inter-array cables is also “well progressed”, the company said.

SSE announced first power from a Dogger Bank wind turbine in October 2023, with delays before and after this causing commercial start up to slip significantly.

SSE said today that the wind turbine installation vessel returned to the site off the north-east coast of England in early May.

“Assuming continued clear weather conditions, it is expected that installation activity will continue uninterrupted over the summer months, with the project targeting full commercial operations during the first half of 2025,” SSE stated.

10 turbines per month

SSE acknowledged that the setbacks at Dogger Bank A illustrated the complexity of executing big offshore wind projects.

But Martin Pibworth, chief commercial officer, also noted that "real progress" has been made over the last 12 months "with all 95 monopiles and transition pieces installed, around 70% of the inter array cables in place, and 16 turbines either part or fully installed".

"With an expected run rate of around 10 turbines a month over the summer months. We are are going to continue installing turbines at a faster rate, " he said.

With the offshore HVDC substation fully commissioned, Pibworth also noted that these turbines will start exporting power and generating revenue as soon as they are installed and commissioned.

"With project contingencies, and the benefit of 15-year index linked CfD contracts in place we still expect this project will deliver full value in line with the mid-teens equity returns we anticipated at (final investment decision)," he told analysts.

Dogger Bank A is the first leg of of a three-phase 3.6GW complex.

On Dogger Bank B, SSE said all monopiles, transition pieces and cables have been fabricated, with monopile installation having commenced in early May.

SSE acknowledged that the delays seen on Dogger Bank A will also impact the Dogger Bank B timetable, “with completion of that phase expected in early 2026.”

Dogger Bank C remains on track offshore and onshore, SSE said, with fabrication of components under way and completion of that phase expected in early 2027.

Dogger Bank is a joint venture partnership between SSE Renewables (40%), Equinor (40%) and Vargronn (20%).

Seagreen

Last October, SSE celebrated the conclusion of Seagreen, currently Scotland’s largest offshore wind farm, located in the Firth of Forth.

Seagreen formally entered into commercial operations in October 2023 with all 114 Vestas V164-10MW turbines reported fully operational now.

Seagreen is currently rated as Scotland's biggest wind farm and the world’s deepest fixed-bottom offshore wind farm, with its deepest foundation installed at 58.7m below sea level.