<article><p class="lead">UK utility SSE and Norway's state-controlled Equinor have closed a financing deal for the first two 1.2GW phases of the Dogger Bank offshore wind farm in the UK's North Sea.</p><p>Offshore construction is due to begin in the second quarter of 2022 for Dogger Bank A, with first power in summer 2023 and commercial operations to begin in 2024. Dogger Bank B will follow a year later with first power in summer 2024 and commissioning in 2025. </p><p>Financial close is expected on the 1.2GW Dogger Bank C later, with commercial operations expected to begin in 2026. </p><p>The £5.5bn financing deal for Dogger Bank A and B, with 29 banks and three export credit agencies, is the largest financing deal ever secured for a wind project, the firms said.</p><p>The three Dogger Bank phases were successful in last year's contracts for difference (CfD) auction round, which secured almost 5.5GW of offshore wind capacity and 300MW of other renewables.</p><p>SSE and Equinor <a href="https://direct.argusmedia.com/newsandanalysis/article/2162840">signed</a> offtake power purchase agreements earlier this week for the output of the farms, with the deals lasting for the duration of the 15-year CfD terms. </p><p>The UK has 10.4GW of fully operational offshore wind farms. Capacity will rise sharply in the coming years as five large projects with a combed capacity of 4.6GW are targeting full commercial operations in 2022-23. </p><p>And the other large farm to win a CfD in the last round, the 1.4GW Sofia project, is expected to be fully operational in 2026. German utility RWE expects to make a final investment decision in the first quarter of 2021. </p><p>These projects will take installed offshore capacity above 20GW by 2026 but this is still well below the government's target of 30GW by 2030. </p><p>More offshore wind farms will be awarded CfDs in the next auction round, due in 2021. The government hopes to secure 12GW in the round. But with onshore wind and solar PV <a href="https://direct.argusmedia.com/newsandanalysis/article/2162826">also participating</a>, offshore is unlikely to dominate to the same extent as in the previous two rounds. </p><p class="bylines">By Killian Staines</p></article>
