Vattenfall won the concession in fierce competition with utilities such as Danish Dong and it means that the Danish government will pay 77 Danish öre per kWh for the electricity from the wind farm for slightly more than ten years. For Denmark, it is a saving of 2.2 billion Danish kronor compared to the most recently constructed offshore wind farm there.
The Danish Minister for Climate, Energy and Construction, Rasmus Petersen, said: “With Horns Rev 3 Denmark writes wind power history with a significant reduction in the cost of construction of offshore wind power. The general decline in prices in the market for wind power means that offshore wind power is now well on its way to become a competitive alternative to traditional fossil fuels, and at the same time, we have developed an efficient procurement model that Europe can take inspiration from”.
REDUCED CARBON EMISSIONS
The agreement means that Vattenfall will now build an offshore wind farm of 400 MW, which will be completed by 1 January 2020 at the latest. The agreement has to be approved by the Danish parliament Folketinget, as well as by the EU.
“The construction of the Horns Rev 3 is an important step towards both Denmark’s and the EU's target of reducing carbon emissions, as 30 percent of energy consumption in 2020 will come from renewable sources. Therefore, we trust that a political majority endorses an agreement and find a solution that satisfies all parties,” says Magnus Hall, Vattenfalls President and CEO.
HUB FOR OFFSHORE ACTIVITIES
Vattenfall already owns several wind farms in the North Sea: Horns Rev1 (160 MW), DanTysk (288 MW) as well as Sandbank where construction will begin this summer (288 MW). Horns Rev 3 now provides additional opportunities for synergies between the offshore wind farms.
“Our operations centre in Esbjerg today monitors more than 1,000 wind turbines, both onshore and offshore, and Horns Rev 3 will bring positive synergies in operations and maintenance of offshore wind farms in the North Sea. The Operations Centre in Esbjerg as well as the city of Esbjerg will become even more important as a supply chain hub for offshore activities as Horns Rev 3 now is to be added to our fleet,” says Alberto Mendez Rebollo, Head of Vattenfall’s Nordic wind business.
In total, Vattenfall operatesabout 1800 MW of wind power, of which 1000 MW is offshore wind power.
Watch this video from Horns Rev 1