German power company Innogy is considering selling a stake in its 1,200 MW Sofia offshore wind project (previously known as Teesside B), which is being developed 65 km off the coast of the North East of England (United Kingdom). The group will submit the project through the next Contract for Difference (CfD) auction in May 2019 and then hopes for potentially bringing in a partner.
The project was granted consent in 2015 and has secured a National Grid connection agreement with the connection point at an existing substation located in Teesside (UK). It will be located on the shallow central area of the North Sea known as the Dogger Bank. Innogy secured a 100% ownership of the Sofia license in August 2017. A final investment decision (FID) has to be taken prior to commencing construction but for this purpose, Innogy requires a positive outcome in a CfD auction. The project could be commissioned between 2025 and 2030.
Innogy's may proceed with the Sofia wind park as it did in 2018 with the 860 MW Triton Knoll project: in 2018, it sold a 41% of its 100% stake to the Japanese companies J-Power and Kansai Electric Power after securing a CfD subsidy in in September 2017. Selling a stake in Sofia would help Innogy to de-risk the project from its balance sheet and reduce its overall cost of capital.
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