Green Giraffe advises Northland Power ahead of German tender

In: Windfarms
Green Giraffe has been commissioned by Northland Power to provide strategic advice, valuation and modelling services ahead of the upcoming German offshore wind tender.

In February, the Federal Network Agency (BNetzA) announced the launch of the first tenders under the new central model for areas N-3.7 (225 MW) and N-3.8 (433 MW) in the North Sea and O-1.3 (300 MW) in the Baltic Sea.

The bidding window is due to close on 1st September 2021. Bids will be awarded based on lowest price (capped at 7.3 ct/kWh) or by lottery if there are multiple subsidy bids.

However, some developers also have the opportunity to 'step-in' and gazump the tender winner, provided they match the winning bid. Companies can exercise this right if they previously held development rights for projects which were unsuccessful in the 2017/2018 transitional tenders and if at least 50% of their project overlaps with the new tender area.

This rule has been introduced as a compensation measure for developers who lost investment in projects when the offshore wind framework switched to the central tender model.

Northland Power (85%) and RWE (15%) previously held rights for the Nordsee Two project which is within the same area of N-3.8. Through development company Nordsee Two GmbH, Northland Power plan to exercise its 'step in right' in this year's tender.

Northland Power plan to use synergies with its sister Nordsee Three project which also holds an 'entry right' for the N-3.5 tender in 2023.

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

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