NewEnergyNews: Ocean Wind Cost Drops Farther In Netherlands

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    Friday, July 08, 2016

    Ocean Wind Cost Drops Farther In Netherlands

    Dong Energy to build world’s lowest cost offshore wind farm

    Joshua Hill, 7 July 2016 (RENew Economy)

    “DONG Energy has been awarded the concession to build the 350 MW Borssele 1 and 2 Offshore Wind Farms off the coast of the Netherlands at a price of €72.70/MWh ($A108/MWh) – the cheapest in the world…The wind farms will be located 22 kilometers off the west coast of the Netherlands, in a water depth of 14 to 38 meters, using monopile foundations...Dong Energy won the concessions with an average bid strike price, excluding transmission costs, of €72.70 per MWh over the first 15 years of the contract — after which, the two wind farms will receive the market price…[The price is below the most optimistic forecasts, including] Dong’s own targeted cost for 2020 of €100 per MWh…[C]osts have been driven down through innovations in wind turbines and blades, continuous improvements of foundation design and installation methods, higher cable capacity, a growing and competitive supply chain and the synergies from building large-scale capacity sites such as Borssele 1 and 2… Dutch sites offer good seabed conditions as well as good and stable wind speeds, which contribute to high output from each turbine…” from the Union of Concerned Scientists (click here for more)

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