Vattenfall wins tender for two windpower projects offshore in Denmark

12 September 2016 (Last Updated September 12th, 2016 18:30)

Vattenfall has won the Danish Near Shore Wind Tender (DNS) for Vesterhav Syd and Vesterhav Nord for delivering the lowest bid of 0.475kr/kWh.

Vattenfall has won the Danish Near Shore Wind Tender (DNS) for Vesterhav Syd and Vesterhav Nord for delivering the lowest bid of 0.475kr/kWh.

Before construction begins, Vattenfall requires a final approval from the Danish Government.

Vattenfall's CEO Magnus Hall said: "Denmark is a core market for us. We have been involved in windpower in Denmark for almost 20 years now and this is an important achievement for our portfolio, as it enables us to provide sustainable energy for 375,000 households.”

Vattenfall Wind head Gunnar Groebler said: “With our bid for DNS, we have demonstrated we are able to reduce the costs of offshore wind faster than had been expected, only a few years ago.

"We have demonstrated we are able to reduce the costs of offshore wind faster than had been expected."

"This again proves renewable energy is going to be competitive and Denmark and Vattenfall is in the lead when it comes to renewable energy. We contribute to this growth and we will continue to do so for the next few decades."

With the DNS, Vattenfall will be the largest owner of wind plants in Denmark and the two farms will have a total capacity of 350MW.

Located in the offshore area outside Hvide Sande and Thyborøn on the west coast of Jutland, Vattenfall will commence the final preparations for the windfarm's development. This includes procurement of main components and services, optimisation, and final design.

The company intends to start construction in 2019 and produce first power in 2020.

According to Greenpeace, the 0.475kr/kWh bid is a new record low for offshore wind prices.

Greenpeace's chief scientist Doug Parr said: "This backs up the predictions that prices for offshore wind will fall steeply in the future. We can expect more and more offshore wind bids to break records with falling prices in the coming years. This will make the price of electricity guaranteed for Hinkley look even more ill advised.

"Theresa May should pay heed to the falling costs of new technologies not available at a reasonable cost when Hinkley was first mooted, and the government needs to catch up before locking us into high-cost contracts until 2060.

"Offshore wind and other renewable energy sources are working now, coming down in price and can come online much quicker than Hinkley which is beset with technical problems."