Dong puts 349MW Borkum Riffgrund 2 on hold

GERMANY: Uncertainty over cable installation has led Dong Energy to put development of its 349MW Borkum Riffgrund 2 offshore project on hold.

German North Sea transmission system operator TenneT has not provided a firm date for when the Dolwin3 export cable, upon which the station would depend, will be commissioned.

Without this date, Dong cannot be entitled to compensation should there be a delay in cable installation, said a Dong Energy spokesperson.

Dong had planned to begin building Borkum Riffgrund 2 in 2015, as soon as its neighbouring project, Borkum Riffgrund 1, was completed. Now the gap will be filled by building an unspecified UK offshore project.

Dong received an unconditional pledge from TenneT for a network connection to the onshore grid from Borkum Riffgrund 2 last spring, but the pledge did not specify a commissioning date.

The German government’s draft law on liability arrangements in connection with offshore cable delays is being discussed today by the parliamentary finance committee. The law is widely expected to take effect at the start of next year.

But the new law will not help Dong if it has no export cable commissioning date from TenneT, as compensation for cable delay is only payable after the date TenneT has said a cable will be ready. "Without this date the business case for the project collapses," said the Dong spokesperson.

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