The He Dreiht offshore wind farm is to become the world’s first offshore wind farm to be built without subsidies after EnBW won in the latest German auction round.
The 900 MW project in the German North Sea will be realised by 2025 and “will benefit from rapidly advancing technological developments” in the wind energy sector, EnBW said in a statement.
A second auction held by the German government awarded three offshore wind farms to Dong Energy.
The Danish energy giant will develop its OWP West, Borkum Riffgrund West 2 and Gode Wind 3 projects in the German North Sea, totalling 590 MW.
Two of the projects – OWP West and Borkum Riffgrund West 2 – were won by Dong with a bid of zero. The Gode Wind 3 project was awarded based on a bid price of €60 per MWh.
“The zero subsidy bid is a breakthrough for the cost competitiveness of offshore wind, and it demonstrates the technology’s massive global growth potential as a cornerstone in the economically viable shift to green energy systems,” said Samuel Leupold, Dong CEO.
Leupold noted that the specific circumstances of the auction – notably the extension of the realisation window to 2024 – had helped enable the zero bid prices. “This allows developers to apply the next generation turbine technology, which will support a major step down in costs,” said Leupold. “Also, the bid reflects the fact that grid connection is not included.”
Greenpeace said that the bids marked a watershed for the offshore wind industry. “Offshore wind has the potential for huge global growth from the USA to Taiwan as the technology massively improves, costs fall and governments wake up to the economic potential,” said Hannah Martin, Head of Energy at Greenpeace UK.