Vattenfall to participate in the world's first non-subsidized tender

The Swedish utility has announced that it will bid in the Dutch tender for the two offshore wind farms Kust Zuid.

Photo: Robin Dave

Friday saw a the launch of a large Dutch offshore wind tender, which is the first auction not to offer state subsidies.

Swedish utility Vattenfall will be placing a bid, says the company in a press release Friday.

Ørsted, formerly Dong Energy, did not wish to comment to Ritzau Finans whether it would place a bid.

Companies can bid in the tender from December 15 to December 21. If no bids are made which qualify the tender, a new tender will be held which offers the possibility of state subsidies.

The tender concerns two wind farms in the Dutch share of the North Sea with a total 700 MW capacity, to be installed in 2022.

Earlier this year, Ørsted won a German tender for three offshore wind farms, of which two operated without state subsidies. It was groundbreaking for the industry as it was the first time an offshore wind farm would be financed without support.

Meanwhile, in the Dutch tender there was an option for state subsidies for the projects, but Ørsted also opted to make a zero-subsidy bid.

Ørsted CEO Henrik Poulsen said in the beginning of November that he does not find the Dutch tender as attractive as the German,

This is due to various framework conditions such as rules, construction timelines and wind farm conditions.

At the current point in time, Poulsen did not wish to divulge whether the company was considering a bid.

Vattenfall states that it will bid on the Dutch action because there are good wind conditions and strong synergy opportunities with another of the company's offshore wind farms which lies nearby, as well as future North Sea projects.

Utilities can also look forward to a tender in Massachusetts, US in December where Ørsted has previously announced that it plans to bid.

The Danish utility expects the final result of the US tender in mid-2018.

English Edit: Lena Rutkowski

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