EnergyWatch

Dong CEO denies that zero-subsidy bid marks a precedent

Dong Energy's zero-subsidy bid on three German offshore wind farms is not likely to be a recurring feature of future German tenders, states CEO Henrik Poulsen, adding that he anticipates a bright future in Germany.

Photo: Dong Energy

Two weeks ago, Dong Energy took the market for a ride. In a German offshore wind tender, the Danish utility placed a bid with zero subsidies – meaning a bid in which Dong would only receive the price of the electricity – for the two projects OWP West and Borkum Riffgrund West 2. This astonished observers as it reflected both a continued plunge in the price of offshore wind and also instigated fears in the market concerning Dong's business model.

But the market should not expect the German zero-subsidy bid to mark a precedent, confirmed Dong Energy's CEO, Henrik Poulsen, in a call to investors Thursday.

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