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Pentland floating offshore wind farm secures Contract for Difference

 

Published by
Energy Global,

The Pentland floating offshore wind farm has secured a Contract for Difference (CfD) in the UK government’s seventh CfD Allocation Round (AR7), marking a significant milestone in Scotland and the UK’s transition to net zero while strengthening long-term energy security.

The Pentland project, located off the coast of Dounreay in Caithness, Scotland, will now progress towards a final investment decision in 2027, with operations expected to commence in 2030. Once operational, the wind farm will have the capacity to generate enough renewable electricity to power up to 70 000 homes.

The project will deploy a range of innovative floating offshore wind technologies, helping to accelerate the industrialisation of floating offshore wind in the UK. It is expected to deliver substantial economic benefits locally and nationally, supporting more than 1000 jobs across construction and operations.

Pentland floating offshore wind farm is being developed by Highland Wind Ltd and is majority owned by funds managed by Copenhagen Infrastructure Partners (CIP). Project development activities are being led by Copenhagen Offshore Partners (COP), CIP’s exclusive offshore wind development partner.

In November 2025, the project secured significant investment from the National Wealth Fund (NWF), Great British Energy (GBE), and the Scottish National Investment Bank, further supporting the UK’s clean energy ambitions, bolstering energy security and supporting skilled jobs. They join existing project partners, Eurus Energy UK Ltd, and minority shareholder, Hexicon AB.

Nischal Agarwal, Partner in CIP, said: “Floating wind has the potential to unlock deepwater resources, strengthening energy security while accelerating the transition to net zero. Pentland demonstrates how this technology can be deployed responsibly and commercially, helping to position Scotland and the UK at the forefront of a global floating offshore wind industry.”

Richard Copeland, Project Director of the Pentland floating offshore wind farm, added: “This CfD award provides the certainty needed to progress Pentland towards delivery and to work closely with the Scottish and UK supply chain as we move into the next phase of development. The project presents a real opportunity to support skilled jobs, invest in local communities and build long-term capability in floating offshore wind. We are committed to ensuring that the economic benefits of Pentland are felt across Caithness, Scotland, and the wider UK.”

 

 

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