The winning subsidy-free bids in Germany’s first offshore wind tender may not be repeated by Dong in upcoming auctions elsewhere, according to the Danish giant.
Chief executive Henrik Poulsen said a number of site-specific factors allowed for zero bids for the 240MW OWP West and 240MW Borkum Riffgrund West 2 projects in the German North Sea.
“We do not want to extrapolate the outcome of the German auction to future auction tenders,” said Poulsen at a presentation of the Danish outfit’s quarter one results today.
Poulsen said strong wind speeds, the 30-year operational lifetime and the absence of transmission costs all contributed to the subsidy-free bids.
The Dong chief also played down suggestions from analysts that project investors would increase capital costs for market-price wind farms.
“We feel confident with the prices we have put down and think we can create meaningful value from the projects,” he said.
“We will only start discussions with investors once we reach the final investment decision”, due in 2021, he added.
Image: Dong Energy
