The winner of the Horns
Rev 3 wind farm tender is Vattenfall
Wind Power A/S with a tariff of €0.1031
per kWh. According to the Danish Energy
Agency, Horns
Rev3 will provide power much
cheaper than other offshore wind farms in Denmark and abroad.
Compared to previous pricing consumers will
expect to save €295 million based on 2015 prices over the next 11-12 years,
the subsidy period, after which Horns
Rev 3 will sell its power at
market rates.
"Horns Rev 3 writes Denmark windmill
history with a significant drop in the cost of construction of offshore
wind. 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," says Minister
for Climate, Energy and Building Minister Rasmus Petersen.
Based on today's price Horns
Rev 3 represents a 32% saving
on previously built Danish wind farms and is currently the cheapest park
in Europe at the moment. However
as confirmed to 4C Offshore by the Danish Energy Authority, the
reason why the Vattenfall bid is so low is due to the fact that they do
not have to pay for use of transmission assets, as is the case elsewhere,
for example in the UK (through TNUOS charges to National Grid).
The low price can also attributed due to development throughout the wind
industry, combined with a very successful tendering process. Through extensive
dialogue and subsequent negotiations with the bidders, the DEA has managed
to lower the price considerably. Moreover, this is a process we can expect
to repeat. There were four companies pre-qualified to participate in the
tender.
"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 is now well on its way to becoming a competitive
alternative to traditional fossil fuels, and at the same time, we have
developed an efficient procurement model that Europe can take inspiration
from,"says Rasmus Petersen.
The winning price has been approved by the
energy agency and must now be adopted by parliament and signed into law.
The government presents the bill on March 18th and the proposal expected
to be adopted in April.
Facts about Horns
Rev 3
· The winner
of the tender is Vattenfall Wind Power A / S.
· The
settlement price is 77.0 per kWh.
· The
construction of Horns
Rev 3 begin as soon as possible,
and the park will be completed by 1 January 2020.
· The
first turbines can be connected to the grid from January 1, 2017, when
the turbines can supply power to the grid.
· Four
companies pre-qualified to participate in the tender, Statoil
ASA , E.ON Wind Denmark AB, Vattenfall Wind Power A / S and DONG Energy
Wind Power A/S
· Electricity
production from the park corresponds to 450,000 households.
· The
establishment will increase the wind share of electricity consumption in
2020 by 4.8% points from 46.2% to 51.0%.
