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Released March 23, 2018 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Sweden's Vattenfall (Stockholm) has won the rights to build the first "no-subsidy" offshore windfarm in the Netherlands.
The permit for the Hollandse Kust Zuid offshore windfarm, which will have a generating capacity of 700 to 750 megawatts (MW), was awarded by Netherlands' Enterprise Agency. With a commissioning date of 2022, it will be among the first of a new wave of European offshore windfarms that will be built without any government financial support. Vattenfall edged out Norway's oil and gas major Statoil ASA (NYSE:STO) and Germany's Innogy for the tender.
Covering an area of 356 square kilometres, it will be located 22.2 kilometers off the west coast of the Netherlands. The windfarm will be built in two phases between 2020 and 2022 by Vattenfall's Dutch subsidiary, Nuon Energy (Amsterdam, Netherlands), which it acquired in 2009 for 10.3 billion euro ($12.6 billion). When completed the project will be capable of powering around 1 million homes.
The minister of Economic Affairs and Climate Policy for the Netherlands, Eric Wiebes, commented: "Thanks to drastically lower costs, offshore windfarms are now being constructed without subsidy. This allows us to keep the energy transition affordable. Innovation and competition are making sustainable energy cheaper and cheaper, and much faster than expected too."
Wiebes said that the Dutch government is on course to achieve its offshore wind ambitions. The cost price of offshore wind has "dropped spectacularly in recent years compared to the 0.124/kilowatt-hour price assumed in the 2013 Energy Agreement." In line with the Energy Agreement, five large offshore windfarms will be under construction in the Dutch North Sea, taking the country's installed offshore wind capacity to over 4,500 MW.
"This is excellent news for Vattenfall and the Netherlands," said Magnus Hall, Vattenfall's president and chief executive officer. "It is a significant step for us in view of our ambitions to grow in renewable energy production. We have previously announced that we intend to invest 1.5 billion euro ($1.8 billion) in growth investments in wind power for the period 2017-2018. The Netherlands is an important market for us, and this will be our second offshore project there."
"Winning the bid for Hollandse Kust Zuid is a result of our continuous cost reduction efforts along our entire value chain and the solid track record and portfolio approach of our company. We are very happy to enlarge our contribution in making the Dutch energy system more sustainable and support our customers, large and small, on their way to become climate smarter", said Gunnar Groebler, senior vice president Business Area Wind.
This time last year, Industrial Info reported on the proposed building of the world's first offshore windfarms without government financial aid. In Germany's first wind power auction, three of the four windfarms accepted--known as 'zero-sum' windfarms--will be built with no financial help. Ørsted will build the 240-megawatt (MW) OWP West and the 240-MW Borkum Riffgrund West 2 offshore windfarms, while EnBW (FWB:EBK) (Karlsruhe, Germany) will build the 900-MW He Dreiht offshore windfarm without subsidies. For additional information, see April 20, 2017, article - World's First 'Subsidy-Free' Windfarms Get German OK.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The permit for the Hollandse Kust Zuid offshore windfarm, which will have a generating capacity of 700 to 750 megawatts (MW), was awarded by Netherlands' Enterprise Agency. With a commissioning date of 2022, it will be among the first of a new wave of European offshore windfarms that will be built without any government financial support. Vattenfall edged out Norway's oil and gas major Statoil ASA (NYSE:STO) and Germany's Innogy for the tender.
Covering an area of 356 square kilometres, it will be located 22.2 kilometers off the west coast of the Netherlands. The windfarm will be built in two phases between 2020 and 2022 by Vattenfall's Dutch subsidiary, Nuon Energy (Amsterdam, Netherlands), which it acquired in 2009 for 10.3 billion euro ($12.6 billion). When completed the project will be capable of powering around 1 million homes.
The minister of Economic Affairs and Climate Policy for the Netherlands, Eric Wiebes, commented: "Thanks to drastically lower costs, offshore windfarms are now being constructed without subsidy. This allows us to keep the energy transition affordable. Innovation and competition are making sustainable energy cheaper and cheaper, and much faster than expected too."
Wiebes said that the Dutch government is on course to achieve its offshore wind ambitions. The cost price of offshore wind has "dropped spectacularly in recent years compared to the 0.124/kilowatt-hour price assumed in the 2013 Energy Agreement." In line with the Energy Agreement, five large offshore windfarms will be under construction in the Dutch North Sea, taking the country's installed offshore wind capacity to over 4,500 MW.
"This is excellent news for Vattenfall and the Netherlands," said Magnus Hall, Vattenfall's president and chief executive officer. "It is a significant step for us in view of our ambitions to grow in renewable energy production. We have previously announced that we intend to invest 1.5 billion euro ($1.8 billion) in growth investments in wind power for the period 2017-2018. The Netherlands is an important market for us, and this will be our second offshore project there."
"Winning the bid for Hollandse Kust Zuid is a result of our continuous cost reduction efforts along our entire value chain and the solid track record and portfolio approach of our company. We are very happy to enlarge our contribution in making the Dutch energy system more sustainable and support our customers, large and small, on their way to become climate smarter", said Gunnar Groebler, senior vice president Business Area Wind.
This time last year, Industrial Info reported on the proposed building of the world's first offshore windfarms without government financial aid. In Germany's first wind power auction, three of the four windfarms accepted--known as 'zero-sum' windfarms--will be built with no financial help. Ørsted will build the 240-megawatt (MW) OWP West and the 240-MW Borkum Riffgrund West 2 offshore windfarms, while EnBW (FWB:EBK) (Karlsruhe, Germany) will build the 900-MW He Dreiht offshore windfarm without subsidies. For additional information, see April 20, 2017, article - World's First 'Subsidy-Free' Windfarms Get German OK.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
