Scottish Power has formalised a £1.3 billion contract with Siemens Gamesa for 95 wind turbines for the East Anglia Three (EA3) offshore wind farm.

The 95 flagship 14.7MW turbines will have a combined capacity of 1,400MW, generating enough green energy to meet the annual demand of 1.3 million homes.

East Anglia Three will be constructed in the Southern North Sea, 69 km offshore from Great Yarmouth on the Norfolk coast and is part of the East Anglia zone.

Scottish Power has already placed contracts worth nearly £70m with UK companies for EA3 and it is estimated that the company will invest over £2bn within the UK to support the construction and operation of East Anglia throughout the project’s lifetime.

Iberdrola executive chairman, Ignacio Galán, said: “The scale and ambition of this investment will support UK’s commitment to net zero and energy security. East Anglia Three offshore windfarm will bring homegrown green electricity to the grid for 1.3 million homes. And, as part of the East Anglia Hub projects, it will also deliver billions of pounds of investment and support thousands of jobs in the East of England and across the UK”.

The Prime Minister, Rt Hon Rishi Sunak, said: “I am delighted that ScottishPower and Iberdrola are investing in the UK – creating thousands of jobs and crucially helping millions of families keep their homes warm with cheaper, renewable energy. 

“Encouraging investment in the UK is at the heart of our economic plan and we have one of the most competitive business tax regimes in the world. Our Spring Budget goes even further by enabling businesses including ScottishPower to write off the full cost of equipment and machinery in the first year they invest.

“This week we’ll set out further action on our plans to boost the supply of affordable, cleaner, home-grown power and create thriving green industries and technologies in the UK.”

ScottishPower Chief Executive, Keith Anderson, said: “This is the highest value contract ever awarded by ScottishPower and it clearly demonstrates our drive and determination to decarbonise the UK.

“Our agreement with Siemens Gamesa is a massive step forward for East Anglia Three, a project that has been more than 13 years in the making. We are now finalising our other contractual commitments so we can all achieve the clean energy future we want – and need.”

Energy security secretary, Grant Shapps said: “The UK is a world leader in offshore-wind, being home to the four largest windfarms in the world, which make a crucial contribution to our energy security and independence, powering more of Britain from Britain.

“Today’s £1.3billion investment from Iberdrola is testament to that, serving as a vote of confidence in the UK’s green economy and creating thousands of jobs.”

The construction period for the scheme is set to be two years.

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