UAE’s Masdar and RWE secure CfD for their mega Dogger Bank South projects

Abu Dhabi Future Energy Company (Masdar), a global clean energy leader, and its partner RWE (Rheinisch-Westfälisches Elektrizitätswerk), have been awarded Contracts for Difference (CfDs) for Dogger Bank South (DBS) offshore wind farms.

The CfDs were awarded at a strike price of GBP91.20 (US$122.5)/MWh.

According to Gov.UK, a Contract for Difference (CfD) in the energy business is a private law contract between a low-carbon electricity generator and the Low Carbon Contracts Company (LCCC), a government-owned company. It is the UK Government’s primary mechanism for enabling the deployment of low-carbon electricity at scale, providing long-term price certainty while supporting affordability and security of supply.

DBS, in which Masdar holds 49 per cent share, is an offshore wind farm project on the North Sea, located over 100km off the northeast coast of England. It comprises two separate 1.5GW sites, DBS East and DBS West. The two DBS projects, once operational, will be capable of producing enough electricity for the equivalent of approximately 3 million UK homes annually.

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said: “Securing Contracts for Difference for the DBS offshore wind farms reinforces Masdar’s long-term commitment to the United Kingdom and our growing role in the delivery of large-scale offshore wind capacity.

“These projects would contribute meaningfully to the resilience and decarbonisation of the UK energy system, while providing skilled jobs, supporting regional supply chains and offering sustained economic benefit. We look forward to working closely with the government, our partners and local stakeholders as the projects move into the next phase of development.”

Masdar expands UK renewable portfolio

DBS is one of the UK’s largest offshore wind projects currently under development with an investment of GBP11 billion.

Markus Krebber, CEO of RWE AG, added: “We are proud to have secured Contracts for Difference for the Dogger Bank South offshore wind projects together with our partner Masdar. This is an important milestone in the development of the projects and brings us significantly closer to their ultimate delivery. It demonstrates our long-term commitment to providing clean and affordable energy for the UK, and contributing to the country’s energy security and net zero ambitions.”

The awards reflect Masdar’s growing involvement in the UK offshore wind sector, building on its established portfolio of long-term investments, including a EUR5.2 billion co-investment with Iberdrola in the 1.4GW East Anglia THREE offshore wind project, as well as strategic stakes in the London Array Offshore Wind Farm (630MW) and the Dudgeon Offshore Wind Farm (402MW).

Masdar is also developing a significant UK battery energy storage pipeline, supporting grid flexibility and system resilience.