Vattenfall drops Dutch tender plans due to COVID-19

In: Windfarms
Vattenfall has confirmed that its has decided not to participate in the Dutch government's tender for the Hollandse Kust Noord offshore wind site.

A spokesperson for Vattenfall issued the following statement: "In light of the current COVID-19 situation, we have carefully evaluated our risk-reward balance against the remainder of our strong pipeline and the rest of our ongoing projects. This evaluation has led to the decision that we will not at this moment participate in the tender for Hollandse Kust Noord. We are still fully committed to our growth ambition in Europe and our role in the Dutch energy transition, i.e. ensuring the safe and timely delivery of Hollandse Kust Zuid.

"Overall the COVID-19 circumstances have created a situation where Vattenfall needs to consolidate its efforts and focus on core activities: electricity production and the delivery of current projects. Taking these developments into account has forced us to review our asset pipeline for 2020 in order to ensure long term growth in Europe. This decision to not compete in the tender was a very difficult one for us, as we were certain we were able to offer an attractive and highly competitive bid. We have a strong Vattenfall team and close collaboration with our suppliers that has done a tremendous job."

On 17th March the Dutch Ministry of Economic affairs confirmed the tender will go ahead regardless of the current COVID-19 pandemic. A statement reads: "At this moment we do not foresee impact of the COVID-19 crisis for the submission of proposals for the Hollandse Kust (noord) permit. Closing of the permit tender remains 30th April 2020, 17:00 hrs. CESTuntil further notice."

The winner is expected to be announced summer 2020. The competitive tender will follow a similar procedure to that of the Hollandse Kust Zuid sites, based on comparative tests with an option for subsidy-free bids.

Vattenfall secured the rights to the
Hollandse Kust Zuid 1&2 and Hollandse Kust Zuid 3 & 4,in separate zero subsidy tenders in March 2018 and July 2019 respectively. The projects are planned to be fitted with approximately 140 units of Siemens Gamesa’s Direct Drive SG DD-193 offshore turbines, which feature the ability to reach a capacity of 11 MW. Once fully operational, the two Hollandse Kust Zuid sites are anticipated to generate enough power to supply up to three million households with green electricity.

The Netherlands' is currently aiming to source 70% of its electricity from sustainable sources by 2030. That amounts to at least 84 TWh, with more than half of this coming from offshore wind farms. Currently, just over 1 GW of offshore wind power is operational off the coast of Netherlands with over 2.5 GW in pre-construction or past the construction consent phase. By 2023, the government expects that there will be 4.5 GW of offshore wind power operational, equating to 16% of the country's electricity needs.

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