DONG Energy has won a tender to construct two offshore wind farms in the Netherlands with a capacity of 350MW each.
The company won the concessions with an average bid strike price, excluding transmission costs of €72.70 per MWh during the initial 15 years of the contract. After that, the wind farms will receive the market price.
The wind farms will be situated 22km from the coast of the Dutch province of Zeeland with a water depth of 14m to 38m. They will cover an area of 128.3km2 and benefit from an annual average wind speed of 9.5m/s.
As per the regulations of the Netherlands’ government, Dong Energy will need to complete the construction of the two offshore projects within an period of four years from the date of contract with one year as grace period.
Dong Energy executive vice president and wind power head Samuel Leupold said: "Winning this tender in a highly competitive field of bidders is another proof of our market-leading position and our business model which builds on continued innovation, industrialisation and scale.
"With Borssele 1 and 2, we’re crossing the levelized cost of electricity mark of EUR 100 per MWh for the first time and are reaching a critical industry milestone more than three years ahead of time. This demonstrates the great potential of offshore wind."
The Dutch offshore grid operator, TenneT, will be responsible for construction, operation and ownership of the substations and the export cable.