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Danes schedule market dialogue for Hesselø

By: Tom Russell 29/10/2020 Danish Energy Agency

General Windfarms

Between November 25 and 30, 2020, the Danish Energy Agency and Energinet will host market dialogue for potential tenderers and the industry on the coming Hesselø offshore wind farm tender.

Hesselø is the second offshore wind farm agreed in the Energy Agreement of June 2018. With the Climate Agreement of June 2020, it was decided to advance the timetable for preparations for the tender as well as the deadline for when the wind farm has to be in full operation, compared to what had originally been agreed in 2018. It means that project now has to be fully commissioned by the end of 2027, which is at the same time as Thor offshore wind farm.

Hesselø will be located north of Sealand in Kattegat and will have it’s point of connection (POC) in Hovegård, around 50 km from the coast. The capacity of the POC is 1,000 MW, while the installed capacity of Hesselø can be between 800-1.200 MW. The excess 200 MW is so-called overplanting that the concessionaire e.g. can choose to use for Power to X (PtX) or for storage (batteries), although PtX or storage is not a part of the tender.

During the market dialogue, the main elements of the tender will be discussed between the DEA, Energinet and potential tenderers and the industry, who thereby get the opportunity to influence the framework conditions for the project. The aim of the market dialogue is to optimise the framework conditions in order to ultimately reach the lowest possible bid price.

The market dialogue will mainly focus on the following topics:

Timetable for the tendering process and the process towards 2027

Conditions for pre-qualification and number of pre-qualified tenderers

Support mechanism

Financial terms and compliance penalties

Options for overplanting, PtX and batteries

Environmental assessments

Coexistence with fishery

The onshore project and grid connection
Due to the current COVID19-related restrictions, the DEA has chosen to arrange the market dialogue as a fully virtual event. The DEA will publish electronic material on the above topics two weeks prior to the market dialogue. After this, interested tenderers and the industry can ask for confidential bilateral meetings with the DEA and Energinet during one of the four days that are allocated to the market dialog (25, 26, 27 and 30 November 2020). The DEA will inform about this later.

After the bilateral meetings, the participants to the market dialogue will have the opportunity to submit written questions or comments to the DEA, which the DEA and Energinet will then answer in a Q&A.

For more information on offshore wind farms worldwide, click here.

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Danes schedule market dialogue for Hesselø

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