The Swedish power company Vattenfall has won the Danish Near Shore Wind tender to build two offshore wind parks with a total capacity of 350 MW. The company submitted the lowest bid (DKK 0.475/kWh, €64/MWh) for the two sites Vesterhav Syd (180 MW) and Vesterhav Nord (170 MW).
However, prior to construction start, Vattenfall needs a final approval from the Danish Government which could never happen because the wholesale power price in Denmark is currently about half of Vattenfall's bid price (at around DKK 0.22/kWh, EUR 30/MWh). Although the winning bid price is one of the lowest bids for offshore wind project ever, the total support costs to construct the 350 MW projects is expected to be DKK 3.6bn (€480m) for the whole financing period from 2020 to 2032, which almost double the expected support costs totalling DKK 1.9bn (€255m) included the energy agreement in 2012.
Approval from the Danish Government, would mean the prices differences to be supported by taxpayers through subsidies. If Vattenfall gets final approval, the projects are expected to start construction in 2019 and produce first power in 2020.
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