The Dutch government will save €2.7bn on the estimated cost of the 700MW Borssele 1&2 offshore wind farm following a record low bid by Dong Energy.
Officials said the “lower than anticipated price” of €72.70/MWh was the result of “fierce competition between companies in the public tender”.
A total of 38 bids were received and prices were due to come in at around €124/MWh. The previous record bid across Europe was around €100 for Vattenfall’s 400MW Horns Rev 3, which was described as a “one off” at the time.
Borssele 1&2, due online in 2020, is also expected to produce 22.5% more electricity than originally anticipated, said officials.
“Worldwide it has never happened before that an offshore wind farm can be built at such low cost,” said Enonomics Minister Henk Kamp.
“The Dutch system in which companies have to compete with each other while the government regulates all conditions for building the wind farm has proved to be very successful. This reduction of cost represents a major breakthrough in the transition to more sustainable energy,” added the minister.
A large element of construction at Borssele is expected to be based in the port of Vlissingen and offshore wind employment will rise from 4000 to 10,000 on the back of the next phase of development.
Image: the new project will boost a Dutch portfolio that already includes the Prinses Amalia wind farm (Eneco)
