Swedish utility Vattenfall AB has won Denmark’s 350-MW nearshore wind power tender with a bid of DKK 0.475 (USD 0.072/EUR 0.064) per kWh, it was announced on Monday.
The company now needs to wait to see whether the government would continue to support nearshore turbines because it is in the process of reviewing policies for the sector.
In the tender Vattenfall won the right to build two coastal wind parks, one of 180 MW at Vesterhav Syd and one of 170 MW capacity at Vesterhav Nord. The company’s competitors were Wpd Hofor Danish Offshore Consortium and the European Energy Nearshore Consortium, whose bids were not disclosed.
Vattenfall says it will initiate final preparations for establishing the wind complex, with a targeted start of construction in 2019. Before that happens, it needs to secure government clearance for the project.
The Danish ministry of energy utilities and climate said in a statement that regardless of Vattenfall’s low bid, building the two wind parks will prove costly for the country. The total support for the projects over the period 2020-2032 is estimated at DKK 3.6 billion, which is almost double the projected DKK 1.9 billion in the energy agreement from 2012, the ministry said. This is because power prices now are lower than expected, so a greater portion of wind power rates needs to be covered by subsidy.
Energy minister Lars Lilleholt plainly commented that the government is working on abandoning the construction of nearshore wind farms because they are seen as expensive and will blemish the coastline. He views wind parks far out at sea as a better option, pointing out that the price of offshore wind is seen to halve over the next 10 years.
The final decision on coastal wind power will be made when the 2025 plan is negotiated, the ministry said.
(DKK 10 = USD 1.508/EUR 1.344)
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