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Released March 06, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Swedish energy major Vattenfall AB (Stockholm, Sweden) has seen off rivals Dong Energy (Fredericia, Denmark), Statoil ASA (NYSE:STO) (Stavangar, Norway) and E.ON AG (OTC:EONGY) (Dusseldorf, Germany) to clinch the latest major offshore wind contract in Denmark which is being billed at Europe's cheapest offshore project.
The Danish government has granted Vattenfall the concession to build the Horns Revs 3 offshore windfarm, which is expected to be fully commissioned by 2020 off the country's west coast. The windfarm will have a capacity of 400-megawatts (MW) and will be capable of generating enough electricity from approximately 450,000 homes when fully operational. The deal still needs to get final approval from the Danish Parliament and the European Union (E.U.).
The windfarm is also notable for its low lifetime costs which the Danish Ministry of Climate, Energy and Building said stands at just over 0.10 per kilowatt (kWh) of electricity. This makes it 32% cheaper than Denmark's 400 MW Anholt offshore windfarm which charges 0.14 per kWh. The Energy Ministry said the country will save approximately 295 million ($328 million) over the next 10-11 years. It also claimed that Horns Rev 3 will be the lowest cost offshore project in Europe. The average cost of offshore windfarm energy in the U.K. -- Europe's largest wind energy market -- stands at approximately 0.15 per kWh in 2015, the Energy Ministry said.
"With Horns Rev 3 Denmark is making windfarm history through realising a significant reduction in the cost of establishing offshore wind farms," explained Minister for Climate, Energy and Building Rasmus Helveg Petersen. "There is no doubt that the power from offshore wind turbines will continue to be an essential part of the green transition and contribute effectively to reducing CO2 in the atmosphere. The low price is not just good for Denmark, but also for the international green transition. The general decline in prices in the market for wind power means that offshore wind power is now well on its way to becoming a viable competitive alternative to traditional fossil fuels. At the same time, we have developed an efficient procurement model which the whole of Europe can take inspiration from."
Vattenfall's CEO Magnus Hall commented: "The construction of Horns Rev 3 is an important step towards both Denmark's and the E.U.'s goals to reduce carbon dioxide emissions, goals that stipulate that 30 % of the total energy consumption in 2020 shall origin from renewable energy sources. This large, planned offshore wind farm will affect Vattenfall's ambitions concerning wind power and especially our focus on offshore wind farms. Today we are the second largest operator of offshore wind power farms in the world and one of the largest operators of on shore wind power in Denmark".
Vattenfall already owns 60 % of the operational Horns Rev 1 offshore windfarm.
The commissioning of Horns Rev 3 will boost wind's share in the Danish electricity mix from just over 46% to 51%.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The Danish government has granted Vattenfall the concession to build the Horns Revs 3 offshore windfarm, which is expected to be fully commissioned by 2020 off the country's west coast. The windfarm will have a capacity of 400-megawatts (MW) and will be capable of generating enough electricity from approximately 450,000 homes when fully operational. The deal still needs to get final approval from the Danish Parliament and the European Union (E.U.).
The windfarm is also notable for its low lifetime costs which the Danish Ministry of Climate, Energy and Building said stands at just over 0.10 per kilowatt (kWh) of electricity. This makes it 32% cheaper than Denmark's 400 MW Anholt offshore windfarm which charges 0.14 per kWh. The Energy Ministry said the country will save approximately 295 million ($328 million) over the next 10-11 years. It also claimed that Horns Rev 3 will be the lowest cost offshore project in Europe. The average cost of offshore windfarm energy in the U.K. -- Europe's largest wind energy market -- stands at approximately 0.15 per kWh in 2015, the Energy Ministry said.
"With Horns Rev 3 Denmark is making windfarm history through realising a significant reduction in the cost of establishing offshore wind farms," explained Minister for Climate, Energy and Building Rasmus Helveg Petersen. "There is no doubt that the power from offshore wind turbines will continue to be an essential part of the green transition and contribute effectively to reducing CO2 in the atmosphere. The low price is not just good for Denmark, but also for the international green transition. The general decline in prices in the market for wind power means that offshore wind power is now well on its way to becoming a viable competitive alternative to traditional fossil fuels. At the same time, we have developed an efficient procurement model which the whole of Europe can take inspiration from."
Vattenfall's CEO Magnus Hall commented: "The construction of Horns Rev 3 is an important step towards both Denmark's and the E.U.'s goals to reduce carbon dioxide emissions, goals that stipulate that 30 % of the total energy consumption in 2020 shall origin from renewable energy sources. This large, planned offshore wind farm will affect Vattenfall's ambitions concerning wind power and especially our focus on offshore wind farms. Today we are the second largest operator of offshore wind power farms in the world and one of the largest operators of on shore wind power in Denmark".
Vattenfall already owns 60 % of the operational Horns Rev 1 offshore windfarm.
The commissioning of Horns Rev 3 will boost wind's share in the Danish electricity mix from just over 46% to 51%.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
