DONG Energy wins tender for Dutch offshore wind farms
The Netherlands’ Minister of Economic Affairs has awarded DONG Energy the concession to build The Netherlands’ offshore wind farms Borssele 1 and 2. DONG Energy won the concessions with an average bid strike price, excluding transmission costs of 72.70 EUR per MWh during the first 15 years of the contract. After that, the wind farms will receive the market price, the Company said in its press release.
Only four years ago, DONG Energy set an ambitious 2020 cost target of reaching EUR 100 per MWh over the life-time of a wind farm – the so-called levelized cost of electricity – including transmission costs. This target, which was later adopted by the offshore wind industry, has now been reached.
Executive Vice President and Head of Wind Power in DONG Energy, Samuel Leupold, says: “Winning this tender in a highly competitive field of bidders is another proof of our market-leading position and our business model which builds on continued innovation, industrialisation and scale. With Borssele 1 and 2, we’re crossing the levelized cost of electricity mark of EUR 100 per MWh for the first time and are reaching a critical industry milestone more than three years ahead of time. This demonstrates the great potential of offshore wind.”
DONG Energy will, in accordance with the Dutch tender regulation, build Borssele 1 and 2 within four years from today with a flexibility of one year. The wind farms’ capacity of two times 350MW will translate into supply of CO2-free electricity covering the annual power consumption of approximately one million Dutch households.
Country Manager for DONG Energy Netherlands, Jasper Vis, says: “The Dutch government has introduced an ambitious, long-term development plan for offshore wind. The Borssele concessions mark a milestone in the Netherlands’ shift towards green energy, and we look forward to bringing our more than 20 years’ experience with offshore wind into these projects.”
About Borssele 1 and 2
• Borssele 1 and 2 will be owned by DONG Energy and have a capacity of 2 x 350MW.
• Subsidy period of 15 years. The bid strike price will not be adjusted to inflation.
• Monopile foundations.
• The wind farms will be located 22km from the coast of the Dutch province of Zeeland with a water depth of 14-38m. They will cover an area of 128.3km2 and benefit from an annual average wind speed of 9.5m/s.
• DONG Energy will, in accordance with the Dutch tender regulation, build Borssele 1 and 2 within four years from today with a flexibility of 1 year.
• The Dutch offshore grid operator, TenneT, is responsible for construction, operation and ownership of the substations and the export cable.
DONG Energy is an energy company engaged primarily in renewable energy sector of Northwestern Europe, in offshore wind and bioenergy. DONG Energy was established in 2006 by the merger of six Danish energy companies: DONG, Elsam, Energi E2, Nesa, Københavns Energi and Frederiksberg Forsyning. DONG Energy has four businesses: Wind Power, Bioenergy & Thermal Power, Distribution & Customer Solutions, and Oil & Gas. The Bioenergy & Thermal Power and Distribution & Customer Solutions businesses jointly constitute the Company's Danish utility business.
