Vattenfall has announced it has won the tender process to build Danish Kriegers Flak, a 600 MW offshore wind farm in the Baltic Sea.
The winning bid was €49.9 (US$54.4) per MWh, which is among the lowest costs in the world for offshore wind power.
Kriegers Flak will be Denmark’s largest offshore wind farm and can supply 600,000 Danish households with renewable energy – corresponding to 23 percent of all households in Denmark. Vattenfall’s investment in Kriegers Flak will be €1.1 – 1.3 billion (US$1.2 - 1.4 billion), pending a final investment decision.
Among the bidding teams of the project were: Energie Baden Württemberg AG (EnBW AG), Wpd HOFOR Stadtwerke München, Kriegers Flak SPV, European Energy A/S and Boralex Europe S.A., Statoil ASA and E.ON Wind Denmark AB, ScottishPower Renewable Energy Limited and DONG Energy Wind Power A/S
In September, Vattenfall won the tender for the Danish Near Shore project (350 MW). The project is pending the Danish Parliament’s decision to proceed.
Magnus Hall, CEO Vattenfall, said:
“The announcement is an essential milestone for our ambition to increase our production of renewable power. We are already the second largest offshore player globally. The winning bid of EUR 49,9 per MWh proves that Vattenfall is highly competitive and brings down the costs for renewable energy.”
Gunnar Groebler, Head of Vattenfall Wind, said:
“This is exciting news. I’m very proud of our people in the Wind organisation who once again delivered a winning bid. Vattenfall has won the three latest offshore wind tenders in Denmark; Horns Rev 3, Danish Near Shore and Kriegers Flak, equivalent to the energy consumption of 55 percent of the Danish households.”
“Our winning bid for Kriegers Flak is 58 percent below the original cap of EUR 0.12. For the Danish Near Shore project the bid was also substantially below its cap. Proceeding with these two projects, Vattenfall provides Denmark with a cost efficient contribution to meet the country’s climate targets and customers’ demand for renewable energy.”