Denmark picks E.ON for 200 MW at Rødsand

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The Swedish arm of German electricity giant E.ON has won the contract to build a long-planned 200 MW extension to the 168 MW offshore wind plant at Rødsand, an area of shallow water in the Baltic Sea between Denmark and Germany, near the Danish town of Nysted. E.ON's bid, accepted by the Danish government, promises to deliver electricity for DKK 62.9/MWh (EUR 8.43/MWh) produced over a theoretical 50,000 hours of operation at full capacity, achievable within 12-14 years. The bid price is DKK 13/MWh (EUR 1.73) more than originally offered by Dong Energy and then E.ON. Both companies pulled out of the government-sponsored project at that price, citing higher than expected technology costs. They were the only companies to resubmit bids to build and operate Rødsand II by the April 21 deadline, despite being required to accept a DKK 435 million (EUR 8.3 million) fine should the project be abandoned again, for whatever reason. The offshore wind station must be in operation by September 30, 2011.

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