Dutch Borssele Offshore Wind Project: the dawn of a price revolution?
Consortium of Shell, Van Oord, Eneco and Mitsubishi/DGE to construct Borssele Wind Farm Sites III & IV at 5.45 eurocent per kWh.
Borssele offshore wind farm Sites III & IV - market update
On 12 December 2016, the tender for the Borssele Wind Farm Sites III & IV (each with a capacity of 350 MW) was awarded to a consortium comprised of Shell, Van Oord, Eneco and Diamond Generation Europe (a wholly-owned subsidiary of Mitsubishi Corporation) with a bid of 5.45 eurocents per kWh. The winning consortium will be granted a permit to build, operate and decommission the wind farm at Borssele Sites III & IV, an SDE+ grant, and will also be given access to the TenneT-built grid connection to the mainland. The permit will be valid for a thirty year period, and the wind farm must be operational within five years.
In our previous updates of 17 August 2016 and 24 August 2016, we reported on DONG Energy’s bid of 7.27 eurocents per kWh for Borssele Wind Farm Sites I & II, which reflected the world’s cheapest offshore wind development by some margin at that time. We also reported that, while the maximum price cap for the SDE+ subsidies was set at 12.4 eurocent per kWh for Sites I & II, this was reduced to 11.975 eurocents per kWh for Sites III & IV (excluding costs for connecting the wind farm to the electricity grid). At the time, it remained to be seen whether the decrease in price cap would have an impact on future bids or not.
Download the full article
This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.