Wednesday, December 1st, 2021
State receives discount
RWE is building Denmark’s largest offshore wind farm
The energy supplier RWE prevails in the race for a billion-dollar project off the Danish coast. The demand for the permit to build a mega wind farm was so great that the government in Copenhagen can reap a bonus for the award.
The energy company RWE has landed an order to build an offshore wind farm in Denmark. The Danish energy authority announced that RWE was the winner by drawing lots from the tender. The wind farm is the largest of its kind in Denmark to date. The competition was so great that, for the first time in the world, the winner of an offshore tender also pays a state a bid. Denmark is one of the most important offshore markets in Europe with great growth ambitions, explained RWE.
The wind farm, named Thor, is scheduled to go into full operation in 2027, RWE explained. Once it is fully operational, Thor will be able to generate so much green electricity that it can cover the equivalent of around 1.4 million Danish households – specifically, the group states the output is up to 1 gigawatt. RWE outperformed its Danish competitor Orsted. The world market leader for offshore wind turbines had also thrown his hat into the ring.
According to the energy authority, RWE will pay the state a discount of around 376 million euros in the first few years of production. The competition for tenders has increased extremely. Since the system prices have fallen sharply, the bidders have more scope for concessions. According to the company, it is the second wind farm off the Danish coast for RWE. According to Danish information, Thor will be built around 22 kilometers off the west coast of Jutland
The investment costs for Thor are estimated at a good two billion euros. Thor is one of three large offshore wind farms that Denmark plans to reduce its carbon dioxide emissions by 70 percent by 2030 compared to 1990 levels.