Price of electricity from offshore wind fell to record low €54.5/MWh

Traditionally high price for offshore wind (primarily stipulated by expensive water installations and multiple additional risks) has almost halved during 2016 according to market monitoring done by the European Wind Energy Association (WindEurope).

The Dutch Government got the lowest ever price of €54.5/MWh when awarding the concession to build wind farms Borssele III and IV (700 MW of installed capacity).

Such an unprecedented price reduction was possible due to a consortium made up by Shell, Van Oord, Eneco and Mitsubishi.

The new price is about 25% lower than for Borssele I and II, which costed the Dutch budget €72.7/MWh (the contract was awarded to DONG Energy in July 2016).

WindEurope CEO Giles Dickson commented on the historic bidding: “This is yet another indication of the accelerated trend towards cost reduction in offshore wind. It is worth mentioning that the obtained results highlight the confidence of the industry in Dutch long-term offshore wind programme”.

WindEurope welcomes the government’s recently-announced intention to expand offshore wind capacity by 1 GW per year from 2023 and publication of the invitation to participate in open tender.

Association’s CEO explained that governments of the countries that are interested in the development of wind energy minimize administrative burdens and ensure the ease of grid connection.

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