Details about the allocation of subsidy and the tendering process for 1GW of new offshore wind capacity in Danish waters have been released by the Danish Energy Agency and network operator, Energinet.dk.
In their Invitation to Dialogue, the two authorities set out their current plans, but emphasise that they are open to revising these in response to feedback from offshore wind developers. A conference with companies interested in bidding will take place on 13 May and private meetings between potential bidders and the Danish Energy Agency will take place at the end of the month.
The current proposals foresee a subsidy for 400MW Horns Rev 3 covering its first 20TWh of electricity production and a subsidy for 600MW Kriegers Flak covering its first 30TWh.
The option of splitting Kriegers Flak into two separate projects of 200MW and 400MW is also raised. This would be technically feasible and would "give more companies the possibility of entering the market and thus contribute to more competition in the long-term", notes the Danish Energy Agency. But the economies of scale of building one large project are also acknowledged and a final decision will be made after feedback from potential bidders.
Unless the draft tendering timetable is amended, the process will begin in earnest this September, with publication of a "contract notice" for 400MW Horns Rev 3. A contract notice for Kriegers Flak is tentatively scheduled for February 2014. Project award decisions are earmarked for the beginning and end of 2015.
Energinet's full suite of technical surveys for both sites will be available no later than the end of April 2014, with many reports due before that date. Draft technical descriptions for both projects have already been released. The description for Horns Rev 3 is here, while Kriegers Flak is here.
The 1GW of capacity must be fully online by 1 January 2020 and the Danish Energy Agency plans to introduce "milestone" deadlines to ensure projects remain on track. Financial incentives and penalties for complying – or failing to meet – the final deadline are also being considered.
