Swedish state-owned energy company Vattenfall is to construct a €1bn offshore windfarm Horns Rev III off the west coast of Denmark.
Slated to be commissioned in 2018, the Horns Rev III offshore windfarm will be largest in the European country.
After being commissioned, the wind plant will have the capacity to generate enough power that can supply electricity to 400,000 Danish households.
Vattenfall president and chief executive officer Magnus Hall said: "Horns Rev III is an important part of Vattenfall's ambitions in the field of wind and particularly on our focus on offshore windfarms.
"Horns Rev III also gives a clear signal to the world around us that Vattenfall´s strategy is to make new investments in renewable electricity generation and to grow in wind.
"Vattenfall supports the transition to a totally renewable energy system and takes up the challenge, in spite of current low electricity prices and excess capacity."
The state-owned power company intends to cut the costs for constructing offshore windpower plants.
This will also help reduce the power generation cost of each kilowatt-hour (KWh) produced, enabling the development and commissioning of the Danish offshore windpower plant in just under three years.
Vattenfall Wind head Gunnar Groebler said: "Horns Rev III is a real milestone for us, it clearly shows that competition is a suitable way to reduce costs for offshore wind significantly.
"Horns Rev III is the cheapest recent offshore project and the experience we have gained from our other wind projects had a very positive impact."
In February last year, Vattenfall won the bid for the concession to construct Horns Rev III offshore windfarm.
Image: Horns Rev III offshore windfarm is to be built off the Danish west coast. Photo: courtesy of Vattenfall.