The authorities in Denmark have included grid connection in the scope of a recently announced tender for offshore wind, a decision which is expected to rule out zero-subsidy bids.
In a statement, the Danish Energy Agency said the tender for the Thor offshore windfarm will include the grid connection from the windfarm to the onshore point of connection. This also includes the offshore substation.
Tender models differ in Europe, with some countries including grid connection and others not. Where grid connection is included in a tender, zero-subsidy bids are less likely because of the extra costs involved for the contractor.
In other respects, the tender for Thor will be similar to earlier ones. This method of tendering has allowed potential participants in it to influence tender conditions in order to ensure the most optimal sharing of risk.
However, the parties behind Denmark’s Energy Agreement have agreed a number of new initiatives in connection with the tendering of Thor, which will have an installed capacity of at least 800 MW but an element of flexibility has been included in the tender so the winning company will have the possibility to installed up to 1 GW of capacity.
In the past, Danish transmission system operator Energinet has been responsible for constructing and operating the offshore substation and the export cables and financed the cost of doing so. This task will now be the responsibility of the winning bidder as part of the scope of the project and will be financed on the Danish state budget.
Energinet will continue to have responsibility for constructing and operating the onshore grid connection from the onshore substation to the transmission grid.
The winner of the tender must pay Energinet for the cost of constructing the onshore grid connection. This will however be subject to the approval from the European Commission.
Further information concerning the tender will be included in a prior information notice which is expected to be published in mid-2019.