Vattenfall won a tender awarded by the Dutch Government to develop the world’s first commissioned offshore wind farm without public subsidies, WindEurope announced on Tuesday
The twin 350-megawatt Hollandse Kust Zuid offshore wind farms will be built by 2022.
According to the announcement, the costs of offshore wind in Europe have been falling dramatically in recent years as manufacturers bring even larger turbines to the market.
"Going zero-subsidy means the wind farms will sell their electricity on the wholesale power market instead of relying on a revenue stabilization scheme, e.g. a Contract for Difference, that locks in a fixed revenue," WindEurope explained in the statement.
The news follows the zero-subsidy offshore wind tender in Germany last year that was a landmark for the industry.
The German offshore tender was the first to attract zero-subsidy winning bids.
"But the projects will only be built in 2024-25, so after Hollandse Kust Zuid is commissioned," the statement read.
Following the German tender, the Dutch Government accepted offers from any developer prepared to submit a zero-subsidy bid.
WindEurope CEO Giles Dickson said this news shows zero-subsidy bids are possible for some developers in some markets not least where governments take on and manage a share of the project risk.
"Wind energy is showing again and again that it can deliver ever more capacity for less cash. That’s the key message other governments should take from this: they should revise their ambition upwards in their national energy plans and offshore wind is a great way to help them do this," he stated.
(Anadolu Agency)
