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Dong Energy wins concession to build 700MW of offshore wind farms in Netherlands

CTBR Staff Writer Published 07 July 2016

Dong Energy has won the concession to build the Borssele 1 and 2 offshore wind farms in the Netherlands, each with a capacity of 350MW.

The company won the tender with an average bid strike price, excluding transmission costs, of EUR 72.70 per MWh. The price support will last for 15 years.

Both the wind farms, which will generate enough energy to power about one million Dutch households, will be built by mid-2020 with an additional year of flexibility available under the contract.

The wind farms will be situated 22km from the coast of the Dutch province of Zeeland with a water depth of 14m to 38m. They will cover an area of 128.3km2 and benefit from an annual average wind speed of 9.5m/s.

DONG Energy executive vice president and wind power head Samuel Leupold said: "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."

TenneT, the Dutch offshore grid operator, is responsible for construction, operation and ownership of the substations and the export cable.

A total of 38 bidders took part in the public tender to secure the permit and related subsidy to the projects.

Four additional offshore wind farms, each 700 MW, are due to follow in the coming years, also off the coast of the provinces of North and South Holland.

All the wind farms will have a combined capacity of 3,500 MW, generating enough electricity for over five million households.