Dong Energy has won bids to build three offshore wind projects with a combined capacity of 590MW in the German North Sea.
The Danish energy giant was awarded the rights to build the projects during the first of two auction rounds conducted by the German regulator, Bundesnetzagentur (Federal Network Agency).
Dong had submitted bids for six projects of which it was awarded rights for the 240MW OWP West project, the 240MW Borkum Riffgrund West 2 project and the 110MW Gode Wind 3 project.
For the OWP West and Borkum Riffgrund West 2 offshore wind projects, Dong Energy made bids at €0 per MWh. This translates to the fact that the two projects will not get any subsidy on top of the wholesale electricity price.
Dong Energy executive vice president and wind power CEO Samuel Leupold said: “The zero subsidy bid is a breakthrough for the cost competitiveness of offshore wind, and it demonstrates the technology's massive global growth potential as a cornerstone in the economically viable shift to green energy systems.
“Cheaper clean energy will benefit governments and consumers – and not least help meet the Paris COP21 targets to fight climate change.’
On the other hand, Dong had successfully bid €60 per MWh for the Gode Wind 3 project.
Dong Energy stated that it will handle the wind turbines, array cables and offshore substation of the projects. It also revealed that grid operator TenneT will look after the construction, operation and ownership of the onshore substation along with the export cable.
Based on a final investment decision from the Danish energy firm in 2021, the three projects have been planned to be commissioned in 2024.