The directors present their Annual Report and the Audited Financial Statements for the year ended 31 December 2024.

The principal activity of the company is the development of the Dogger Bank South (West) offshore wind farm situated off the coast of North Yorkshire.

As the wind farm is currently in development, no revenue generating operations are taking place.

The company made a profit of £72k (2023: loss of £22k) largely due to finance income from bank interest of £154k (2023: nil), offset by administrative expenses not eligible for capitalisation of £43k (2023: £22k) . As the company is a wind farm at the development stage, it is not expected to make a profit and the majority of expenditure incurred to date has been capitalised.

The results for the year are set out on page 9.

No ordinary dividends were paid during the year (2023: nil). The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the date of approval of the financial statements.

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company. The company's operations expose it to a few financial risks which are set out below.

During the year, the company continued to receive financial support from shareholders through cash funding requests in accordance with the commitments made under the Shareholders' Agreement, which was entered into on 29 February 2024. The company manages its cash requirements in order to ensure the company has sufficient liquid resources to meet the operating needs of the business.

Prior to entering into the Shareholders' Agreement, the company received financial support from its parent companies through shareholder loans and, as such, had no significant exposure to liquidity risk outside the RWE Group.

The company's exposure to interest rate risk was limited to interest charged on loans made from other group companies. Since the transition from loan funding to equity funding on 27 February 2024, the company is not currently exposed to interest rate risk.

All of the company's transactions and balances are currently denominated in sterling and there is therefore no foreign currency risk. In the future, where transactions are to be made in a foreign currency, the company will actively seek to hedge its exposure against movements in exchange rates through the use of forward contracts.

The company has no significant exposure to credit risk.

The company has no significant exposure to price risk.

On 6 January 2025, 79,050,000 ordinary shares of £1 each were issued to RWE Renewables UK Limited and 75,950,000 ordinary shares of £1 each were issued to Masdar DBS West Limited. The new share issue increased the number of shares in the company from 132,000,200 to 287,000,200. The shares were issued at par and fully paid in cash.

On 16 April 2025, 1,530,000 ordinary shares of £1 each were issued to RWE Renewables UK Limited and 1,470,000 ordinary shares of £1 each were issued to Masdar DBS West Limited. The new share issue increased the number of shares in the company from 287,000,200 to 290,000,200. The shares were issued at par and fully paid in cash.

On 18 July 2025, 6,120,000 ordinary shares of £1 each were issued to RWE Renewables UK Limited and 5,880,000 ordinary shares of £1 each were issued to Masdar DBS West Limited. The new share issue increased the number of shares in the company from 290,000,200 to 302,000,200. The shares were issued at par and fully paid in cash.

The principal activities of the business will be to continue development of the Dogger Bank South (West) wind farm.

Deloitte LLP were appointed as auditor to the company, and have indicated their willingness to be reappointed for another term.

Each of the persons who is a director at the date of approval of this report confirms that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and

• the director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

These financial statements have been prepared on a going concern basis. In assessing this basis, the directors have considered the company’s financial position and anticipated future financing requirements.

The directors have a reasonable expectation that the company will continue in existence for at least 12 months from the date of approval of these financial statements. However, the directors note the existence of a material uncertainty related to going concern. This uncertainty arises from the company’s dependence on the approval of the next funding notice by its shareholders.

Under the shareholders’ agreement, the company’s financial obligations are currently covered by approved equity funding, which provides sufficient resources to meet expected financial commitments until the next project milestone, anticipated to be reached in January 2026. Funding beyond this milestone is contingent on shareholder approval, which, as at the date of these financial statements, has not yet been obtained. The budget and associated equity funding for the subsequent project milestone are expected to be approved by shareholders in December 2025.

As a consequence, the directors acknowledge that a material uncertainty exists regarding the company’s ability to secure future equity funding, which may cast significant doubt over its ability to continue as a going concern. Notwithstanding this uncertainty, the directors remain positive about the future direction of the business and anticipate that the necessary funding will be secured. Therefore, these financial statements have been prepared on a going concern basis.

In the event that the funding is not approved, the company may be unable to realise its assets in full and discharge its liabilities in the normal course of business. These financial statements do not include the adjustments that would result should the company be unable to continue as a going concern.

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 414B of the Companies Act 2006 in not preparing a Strategic report.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 101 “Reduced Disclosure Framework”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In our opinion the financial statements of RWE Renewables UK Dogger Bank South (West) (the ‘company’):

• give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of the profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial reporting standard 101 “Reduced Disclosure Framework”.

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

• the statement of comprehensive income;

• the statement of financial position;

• the statement of changes in equity;

• the related notes 1 to 20.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which indicates that the company’s current approved equity funding only covers financial commitments until January 2026. The directors anticipate that the necessary funding will be secured, however, as at the date of these financial statements, this has not yet been obtained. These events or conditions, along with the other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

• had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act and UK tax legislation; and

• do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included environmental regulations, health and safety regulations and data protections regulations.

We discussed among the audit engagement team and relevant Analytics specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with HMRC and Ofgem.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the directors’ report.

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit, or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

There were no items of other comprehensive income.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

RWE Renewables UK Dogger Bank South (West) Limited is a private company limited by shares, incorporated in England and Wales and domiciled in the United Kingdom. The registered office is Windmill Hill Business Park, Whitehill Way, Swindon, Wiltshire, United Kingdom, SN5 6PB. The company's principal activities and nature of its operations are disclosed in the Directors' report.

The financial statements have been prepared in accordance with Financial Reporting Standard 101, ‘Reduced Disclosure Framework’ (FRS 101) and in accordance with the Companies Act 2006. The company previously presented the primary statements following the formats as prescribed by the Companies Act. During the year, the company changed its accounting policy in respect of presenting financial statements to follow the primary statement formats as prescribed in IAS 1, Presentation of Financial Statements. The company believes the new policy is preferable as it more closely aligns the accounting with the treatment by its parent company and will aid comparability. This change in classification has been accounted for retrospectively. No restatement of comparative information was required.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

As permitted by FRS 101, the company has taken advantage of the relevant disclosure exemptions from the list below that are available under that standard in relation to share based payments, financial instruments, capital management, presentation of a cash flow statement, presentation of comparative information in respect of certain assets, standards not yet effective, impairment of assets, business combinations, discontinued operations, related party transactions, revenue from contracts with customers and leases.

• the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share based Payment;

• the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)(ii), B64(p), B64(q)(ii), B66 and B67of IFRS 3 Business Combinations. Equivalent disclosures are included in the consolidated financial statements of RWE AG in which the entity is consolidated;

• the requirements of paragraph 33 (c) of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;

• the requirements of IFRS 7 Financial Instruments: Disclosures;

• the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;

• the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers; and

• the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details of indebtedness required by paragraph 61(1) of Schedule 1 to the Regulations is presented separately for lease liabilities and other liabilities, and in total;

• the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets and (iv) paragraphs 76 and 79(d) of IAS 40 Investment Property;

• the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;

• the requirements of IAS 7 Statement of Cash Flows;

• the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

• the requirements of paragraphs 88(c) and 88(d) of IAS 12 Income Taxes;

• the requirements of paragraph 17 of IAS 24 Related Party Disclosures;

• the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member;

• the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

Where required, equivalent disclosures are given in the group financial statements of RWE AG. The group financial statements of RWE AG are available to the public and can be obtained as set out in note 19.

These financial statements have been prepared on a going concern basis. In assessing this basis, the directors have considered the company’s financial position and anticipated future financing requirements.

The directors have a reasonable expectation that the company will continue in existence for at least 12 months from the date of approval of these financial statements. However, the directors note the existence of a material uncertainty related to going concern. This uncertainty arises from the company’s dependence on the approval of the next funding notice by its shareholders.

Under the shareholders’ agreement, the company’s financial obligations are currently covered by approved equity funding, which provides sufficient resources to meet expected financial commitments until the next project milestone, anticipated to be reached in January 2026. Funding beyond this milestone is contingent on shareholder approval, which, as at the date of these financial statements, has not yet been obtained. The budget and associated equity funding for the subsequent project milestone are expected to be approved by shareholders in December 2025.

As a consequence, the directors acknowledge that a material uncertainty exists regarding the company’s ability to secure future equity funding, which may cast significant doubt over its ability to continue as a going concern. Notwithstanding this uncertainty, the directors remain positive about the future direction of the business and anticipate that the necessary funding will be secured. Therefore, these financial statements have been prepared on a going concern basis.

In the event that the funding is not approved, the company may be unable to realise its assets in full and discharge its liabilities in the normal course of business. These financial statements do not include the adjustments that would result should the company be unable to continue as a going concern.

Intangible assets relate to the rights, licences and development costs incurred prior to the construction of the Dogger Bank South (West) wind farm. Development expenditure is written off as incurred except where the directors are satisfied that the project under development has sufficient likelihood to generate future economic benefits. In such cases the identifiable expenditure is capitalised as an intangible asset until commencement of construction. Subsequent expenditure is then capitalised as tangible fixed assets. Provision is made for any impairment.

Amortisation

Development costs are amortised from the date a project becomes operational.

Property, plant and equipment is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of property, plant and equipment is provided on a straight line basis to write off the cost less the estimated residual value of the assets by equal instalments over their estimated useful economic life as follows:

Right-of-use assets capitalised under the asset classifications above are depreciated at the shorter of the lease term or expected useful life of the underlying asset.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

For trade receivables and contract assets, the company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables – see note 11.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of repurchasing it in the near term, or

• on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or

• it is a derivative that is not designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense for the period comprises current and deferred tax. Tax is recognised through profit or loss, except to the extent that it relates to items recognised in other comprehensive income. In this case, the tax is also recognised in other comprehensive income.

The current income tax charge is calculated on the basis of the laws enacted or substantively enacted at the balance sheet date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balance on a net basis.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the year are included in profit or loss.

There are no amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 31 December 2024 that have had a material impact on the company’s financial statements.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The cost of rights, licences and development costs incurred prior to construction are capitalised as intangible assets where the directors are satisfied that the project under development has sufficient likelihood to generate economic benefit. Development costs incurred in relation to non-current tangible assets are capitalised as property, plant and equipment. This assessment requires judgements to be made by the directors.

The directors are also required to make judgements as to whether borrowing costs are directly attributable to bringing the generation and transmission assets to the location and condition necessary for them to be capable of operating according to their specifications. Those directly attributable costs are capitalised in accordance with IAS 23, Borrowing Costs.

No fees were paid to the auditor for non-audit services.

The company has no employees for the year under review (2023: none).

The directors do not receive any remuneration from the company in respect of their services to the company. Instead, they are employed and paid by other related entities. Due to the nature of the services provided and the number of entities to which it relates, it is not possible to meaningfully allocate the directors’ remuneration in respect of qualifying services to the company.

The tax charge for the year is higher than the standard rate of corporation tax in the UK (2023: higher than the standard rate of corporation tax in the UK) of 25.00% (2023: 23.52%).

The charge for the year can be reconciled to the profit/(loss) per the statement of comprehensive income as follows:

The company has yet to commence trading and therefore a deferred tax asset of £219k has not been recognised in respect of pre-trading expenditure (2023: £208k).

Pillar Two income taxes

The company has applied the temporary exception, introduced in May 2023, from the accounting requirements for deferred taxes in IAS 12, so that the company neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes. The impact of Pillar Two legislation is not expected to be material.

Intangible assets relate to costs incurred as part of the development of the Dogger Bank South (West) wind farm. This includes £272,978k of option fee payments made to the Crown Estate to date (2023: £133,848k).

Cumulative borrowing costs of £7,446k (2023: £6,082k) have been been capitalised as historical shareholder loans were taken out specifically for the asset.

Property, plant and equipment includes right-of-use assets, as follows:

Whilst the wind farm is in its development phase, depreciation charges incurred against right of use assets are re-capitalised to the intangible asset and the costs amortised over the lifetime of the asset once it commences operations.

Wind farm assets relate to assets in the course of construction.

Trade receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

The company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime or 12 months expected loss allowance for all receivables and contract assets depending on the change in the credit rating of the organisation being assessed. Expected credit losses on related party receivables are considered insignificant to the company.

Amounts owed by parent and fellow group undertakings are unsecured, interest free and repayable on demand.

In 2023, loans from parent undertakings included shareholder loans to cover development costs. All loan drawdowns made before 20 June 2023 incurred interest at a fixed rate of 2.203%. On 20 June 2023, the company's shareholder loan facilities were amended and the interest rate was increased from 2.203% to 6.96%.

The balances outstanding as of 31 December 2023 were £80,855k due to RWE Renewables UK Swindon Limited and £80,854k due to RWE Renewables UK Limited.

On 27 February 2024, all outstanding shareholder loans with RWE Renewables UK Swindon Limited of £166,146k and RWE Renewables UK Limited of £166,145k were converted to equity in preparation for the sale of 49% of equity to Masdar DBS West Limited, refer to notes 15 and 16 for further details.

Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade and other payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Included in amounts owed to parent undertakings in 2023 is an unsecured £4,067k loan repayable within one year to RWE AG. Interest is charged at monthly SONIA average rate (comparable rate for other currencies) plus 50 basis points except where the interest rate is negative and then it is fixed to a rate of 0.50%.

The remaining amounts owed to parent and group undertakings are unsecured, interest free and repayable on demand.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

Total cash outflow for leases was £12k (2023: £11k).

On 27 February 2024, 98 ordinary shares were allotted at a total share premium of £332,291k as part of the loan to equity conversion.

On 29 February 2024, 100 ordinary shares were allotted at a total share premium of £6,500k.

On 16 May 2024, 28,000,000 ordinary shares were allotted at par value.

On 5 July 2024, 83,000,000 ordinary shares were allotted at par value.

On 13 November 2024, 21,000,000 ordinary shares were allotted at par value.

On 27 February 2024, 98 ordinary shares were allotted at a total share premium of £332,291k as part of the loan to equity conversion.

On 29 February 2024, 100 ordinary shares were allotted at a total share premium of £6,500k.

At 31 December the company had capital commitments as follows:

The capital commitments consist of option fee payments due to the Crown Estate and other wind farm development costs.

During the year the company entered into the following transactions with related parties:

Recharged costs during the year consist of development costs borne by the parent companies and other related parties.

The shareholder loans were taken out to fund the company's development costs, refer to note 12 for further details.

During the year, the following related party transactions were capitalised as part of the wind farm: recharged costs of £118,813k (2023: £24,432k), shareholder loan interest of £912k (2023: £2,467k), PCG fees of £449k (2023:967k) and interest payable to RWE AG of £819k (2023:£199k).

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

As at 31 December 2023, the share capital of RWE Renewables UK Dogger Bank South (West) Limited was owned by RWE Renewables UK Limited (50%) and RWE Renewables UK Swindon Limited (50%).

As at 31 December 2024, following the sale of shares by RWE Renewables UK Swindon Limited in February 2024, 51% of RWE Renewables UK Dogger Bank South (West) Limited share capital was owned by RWE Renewables UK Limited, 49% by Masdar DBS West Limited.

The company's immediate parent is RWE Renewables UK Limited. The registered address of the immediate parent is Windmill Hill Business Park, Whitehill Way, Swindon, Wiltshire, SN5 6PB.

The ultimate parent company and controlling party is RWE AG, a company incorporated in Germany. Copies of RWE AG's financial statements are available upon request from RWE AG, RWE Platz 1, 45141 Essen, Germany.

The most senior parent entity producing publicly available financial statements is RWE AG.

The following are the parents of the smallest and largest groups in which these financial statements are consolidated, for which the country of incorporation and address of the registered office are disclosed above:

On 6 January 2025, 79,050,000 ordinary shares of £1 each were issued to RWE Renewables UK Limited and 75,950,000 ordinary shares of £1 each were issued to Masdar DBS West Limited. The new share issue increased the number of shares in the company from 132,000,200 to 287,000,200. The shares were issued at par and fully paid in cash.

On 16 April 2025, 1,530,000 ordinary shares of £1 each were issued to RWE Renewables UK Limited and 1,470,000 ordinary shares of £1 each were issued to Masdar DBS West Limited. The new share issue increased the number of shares in the company from 287,000,200 to 290,000,200. The shares were issued at par and fully paid in cash.

On 18 July 2025, 6,120,000 ordinary shares of £1 each were issued to RWE Renewables UK Limited and 5,880,000 ordinary shares of £1 each were issued to Masdar DBS West Limited. The new share issue increased the number of shares in the company from 290,000,200 to 302,000,200. The shares were issued at par and fully paid in cash.