Vattenfall wins 400 MW offshore wind farm project in Denmark

The Swedish utility Vattenfall has secured a contract to build 400MW Horns Rev 3 offshore wind park in Denmark.

They farm will produce the world’s cheapest offshore wind energy, according to Denmark’s ministry of climate and energy.

“With Horns Rev 3, Denmark is making windmill history through realizing a significant reduction in the cost of establishing offshore wind farms,” said Rasmu Helveg Petersen, minister for climate, energy and building, Denmark.

“The low price is not just good for Denmark, but also for the international green transition,” he added.

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The first turbines are scheduled to start supply power in 2017, at a cost of 10.31 euro cents per KWh.

The decided rate is 32 percent cheaper than the last tender for wind project in Denmark, the ministry said.

That means that Danish consumers can save about 295 million euros over the next 11-12 years. The farm will receive subsidies for that period.

However, the agreed price with Vattenfall is more than three times higher than wholesale Nordic power price of 2.8 euro cents per kWh for delivery in 2017.

The power consumers will cover the difference between the market price and the price agreed with Vattenfall by paying subsidies.

The cost of the project is not revealed.

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The deal is waiting for parliament approval right now. Once approved, the park will be able to produce electricity for 450,000 homes, when all turbines will be constructed by 2020.

Offshore wind industry in Europe will see more cost reduction with the removal of subsidies, with the average costs going below 10 euro cents/kWh by the end of the decade from around 12.5 euro cents/kWh in 2014.

Vattenfall owns about 1,800 MW of wind farms, out of which 1,000 MW of them are offshore.

Wind power accounted for about 39 percent of consumption in Denmark in 2014, the highest share in the world.

Denmark has kept a target of achieving 30 percent green energy contribution by 2020 and 100 percent green energy consumption from renewables by 2050.

Sabeena Wahid
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