Denmark's Dong Energy Secures Development Contract for Country's Anholt Offshore Windfarm

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Danish Energy Agency (Copenhagen, Denmark) has awarded Dong Energy A/S (Fredericia, Denmark) the concession to develop a 400-megawatt (MW) windfarm off the Danish island of Anholt in the Kattegat. The windfarm will entail a total investment of about $1.65 billion and when completed, will supply about 4% of Denmark's power supply--enough carbon dioxide-free electricity to power 400,000 households. Dong Energy bid for the project in April 2010 and was the sole bidder.

The Kattegat is the body of water between Denmark and Sweden, and the windfarm will be about 20 kilometers offshore from the northeast coast of the Jutland peninsula. The site was selected primarily because of the already existing power-transmission network. The project is being financed by the government of Denmark.

Dong Energy CEO Anders Eldrup said, "Building the Anholt offshore windfarm will bring Dong Energy a major step closer towards the vision of supplying energy without CO2."

First power from the windfarm is expected to be supplied by the end of 2012, while the entire windfarm is scheduled to be commissioned by the end of 2013. Delays in the commissioning date could prove rather expensive for Dong Energy, as this will mean a lower tariff income and a late penalty if all the turbines are not grid-connected by December 31, 2013.

The 111 wind turbines for the project will be delivered by Siemens Wind Power (Brande, Demark), a division of the Energy Sector of electrical and electronics engineering company Siemens AG (NYSE:SI) (Munich, Germany). The turbines will be manufactured at the company's facility in Brande. Each SWT-3.6-120 wind turbine has a power generation capacity of 3.6 MW and a rotor diameter of 120 meters. Siemens was also awarded the supply contract in June. The scope of the contract involves the manufacture, installation and commissioning of the wind turbines. Siemens will also offer a service and maintenance agreement for the first five years of operation, with the option to renew.

The SWT-3.6-120 is based on the technology of the most popular offshore wind turbine, the company's SWT-3.6-107. Siemens' proprietary NetConverter system used in the turbine makes it compatible with all grid codes, however complicated. The built-in lightning-protection and condition-monitoring systems makes the model an attractive wind turbine for areas that experience turbulent weather. The detailed safety features of the wind turbine enable it to shut down safely from all operational conditions. The wind turbine is suitable for both onshore and offshore windfarms.

Dong Energy claims global leadership in the development of offshore windfarms and has set up 50% of the operational and under-development large-scale windfarms in the world. In 2009, the company built the 209-MW Horns Rev 2 offshore windfarm in the Danish area of the North Sea. To date, Horns Rev 2 is the largest operating offshore windfarm.

Dong Energy built the recently completed 172-MW Gunfleets Sands offshore windfarms 1 and 2 in the U.K. and is currently developing three more projects in the island nation. One of the projects under development is the 630-MW London Array offshore windfarm, set to become the world's largest offshore windfarm when commissioned in 2013.

Currently, Dong Energy has several operating and under-development onshore and offshore wind power projects across Europe. The projects are located in Denmark (449 MW), Great Britain (1,171 MW), France (9 MW), Norway (23.5 MW), Poland (112 MW), and Sweden (24 MW).

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