Dong Energy will build the Netherlands’ offshore wind farms Borssele 1 and 2, according to the Netherlands’ Minister of Economic Affairs.
Dong Energy won the concessions with an average bid strike price, excluding transmission costs of 72.70 euros per MWh during the first 15 years of the contract. After that, the wind farms will receive the market price.
Four years ago, Dong Energy set a 2020 cost target of reaching 100 euros per MWh over the lifetime of a wind farm — the levelized cost of electricity — including transmission costs. This target, which was later adopted by the offshore wind industry, has been reached.
“Winning this tender in a highly competitive field of bidders is another proof of our market-leading position and our business model that builds on continued innovation, industrialization, and scale,” said Samuel Leupold, executive vice president and head of Wind Power at Dong Energy. “With Borssele 1 and 2, we’re crossing the levelized cost of electricity mark of 100 euros 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 with a flexibility of one year. The wind farms’ capacity of two times 350 MW will translate into a supply of carbon-dioxide-free electricity covering the annual power consumption of about 1 million Dutch households.
“The Dutch government has introduced an ambitious, long-term development plan for offshore wind,” said Jasper Vis, country manager for Dong Energy Netherlands. “The Borssele concessions mark a milestone in the Netherlands’ shift toward green energy, and we look forward to bringing our more than 20 years’ experience with offshore wind into these projects.”
The reduction of cost of electricity is driven by cross-industry collaboration, ongoing innovation of wind turbines and blades, continuous improvements of foundation design and installation methods, higher cable capacity, a growing and competitive supply chain, and the synergies from building large-scale capacity sites such as Borssele 1 and 2. In addition, the Dutch sites offer good seabed conditions as well as good and stable wind speeds, which contribute to high output from each turbine.
Source Dong Energy
For more information go to: www.dongenergy.com.