Dong Energy to develop 700MW of offshore wind farms in the Netherlands

Dong Energy to develop 700MW of offshore wind farms in the Netherlands

Danish developer Dong Energy (CPH:DENERG) has been awarded the right to develop and build 700MW of offshore wind farms in the Borssele 1 and 2 zones in the Netherlands.

The winning bid excluding transmission costs is US$94.21 per megawatt-hour. The price support is expected to last for 15 years.

The two 350MW projects will be constructed by mid-2020 with an additional year of flexibility.

Dong said it will deploy the monopole foundations around 22km from the Dutch province of Zeeland in water depths of between 14 and 38 metres. Average annual wind speeds reach 9.5 metres per second in the area.

“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,” said Samuel Leupold, head of Dong wind power.

“With Borssele 1 and 2, we’re crossing the levelised cost of electricity mark of €100/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.”

An additional 700MW of projects will be auctioned later this year in the zone following further action in the Holland North and Holland South areas in the next decade.

@RGNOnline