DONG Wins Dutch Offshore Wind Tender

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--DONG Energy (Fredericia, Denmark) has secured the concession to build two offshore windfarms by the Dutch government.

The company won the contract in part due its very aggressive bid of 72.70 euro ($80.60) per megawatt hour (MWh), excluding the cost of transmission, making the projects the first in the world to break the 100 euro per MWh barrier. The Borssele 1 and 2 windfarms each have a proposed generation capacity of 350 MW and are located 22 kilometres (km) from the coast of the Dutch province of Zeeland in a water depth of 14-38 metres. They will cover an area of 128.3 square kilometres and be able to supply enough electricity for approximately one million households.

In accordance with the Dutch tender regulation, DONG has four years to build both windfarms.

"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, executive vice president and head of wind power at DONG. "With Borssele 1 and 2, we're crossing the levelised cost of electricity (LCoE) mark of 100 euro 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."

Henk Kamp, Dutch minister of economic affairs, commented: "Worldwide it has never happened before that an offshore windfarm can be built at such low cost. The Dutch system in which companies have to compete with each other while the government regulates all conditions for building the windfarm has proved to be very successful. This reduction of cost represents a major breakthrough in the transition to more sustainable energy."

DONG Country Manager for Netherlands Jasper Vis added: "The Dutch government has introduced an ambitious, long-term development plan for offshore wind. The Borssele concessions mark a milestone in the Netherlands' shift towards green energy, and we look forward to bringing our more than 20 years' experience with offshore wind into these projects."

Earlier this week, DONG was among a group of the largest energy companies in Europe to join efforts in the U.K. to cut the cost of offshore wind power below £100 per megawatt hour (MWh) by 2020. For additional information, see July 13, 2016, article -- Energy Giants Aim to Slash Offshore Wind Costs.

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