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Energy giants bid for subsidy-free offshore wind

Wednesday, 03 January 2018

Tore G. Halvorsen

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In December 2017, Vattenfall and Statoil participated in the auction for the world first exclusively subsidy-free offshore wind project, Hollandse Kust Zuid in the Dutch part of the North Sea. The delivery date will be in 2022, which is regarded as very early and challenging by many.

A similar auction was held in April 2017, where Orsted (previously known as Dong Energy) and Germany’s Energie Baden-Württemberg offered to build offshore wind in Germany that rely solely on market power prices from 2024.

Developers for such bids rely on the rises in wholesale power prices, cost reductions, and technology developments, e.g. larger wind turbines with capacity 13 to 15 MW. In addition, subsidy-free bids, at least for now, also depend on project-specific conditions, e.g. Hollandse Kust Zuid locates close to another Vattenfall’s project...

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