“Today is a good day,” declares Graeme Watters, as he watches the 114 turbines at the giant Seagreen wind farm rotate. It is mid-October, and the project that began off Scotland’s east coast almost 14 years before is now fully operational. Seagreen, a joint venture between French group Total Energies and SSE Renewables, a division of energy group SSE, is Scotland’s biggest wind farm. It can generate electricity to power 1.
” While costs have risen steeply, the prices agreed for the power generated by offshore wind farms have not. Owners typically sign long-term deals to sell their electricity or secure subsidies before construction begins, so investors have a clear picture of future revenues and are less exposed to volatile spot power prices. Many such contracts now look out of kilter with increased construction costs. This has particularly hurt projects in development in the US and the UK.