wind

Denmark

Danish Energy Agency puts Horns Rev 3 wind project out to tender

The contract notice for the forthcoming 400MW Horns Rev 3 wind farm has now been published by the Danish Energy Agency as a first step in an effort to more than double Danish offshore energy by 2020
Danish Energy Agency puts Horns Rev 3 wind project out to tender

The 400MW Horns Rev 3 offshore wind farm will be able to generate enough electricity to supply some 400,000 households and will be the first such facility to be constructed as a result of the Energy Agreement of 2012. This agreement established a requirement to more than double Danish offshore power by 2020 and covers the 600MW ‘Krieger's Flak’ project in the Baltic as well as 450MW of coastal parks alongside Horns Rev 3. These additional facilities will be put out to tender in 2014. Pilot wind turbines with a capacity of 50MW will also be established.

In order to increase the level of competitiveness for the project, the Energy Agency has decided that the only criteria for selection will be price. The contract sets out the main principles for bidding and outlines the requirements necessary to become prequalified in order to participate in the tender, which will be conducted as a negotiated procedure. The prequalification ensures that only those who tender and are able to undertake the task, both financially and technically, can participate in the tendering procedure.

The agreement has received widespread support from other Danish political parties, with the exception of the Liberal Alliance. The requirements for prequalification have been customised to create more competition and bring new players and financial institutions to the Danish market. Among other things, there are now more relaxed requirements for financial and economic capacity in comparison to the last bidding process undertaken for an offshore wind farm in Denmark at Anholt in 2010. There is also an assurance that those prequalified are fit to handle the task. The technical requirements ensure the necessary experience in the installation and operation of offshore wind farms.

“The contract notice for Horns Rev 3 marks an important milestone in our efforts to create more competition to build Danish offshore wind farms and attract new capital for the green transition in Denmark” said Climate, Energy and Building Minister Martin Lidegaard, adding that the announcement was the result of an intensive dialogue with the market in order to create the right framework conditions.

Mr Lidegaard explained that the prequalification is an important part of a new procurement model that involves both a considerable amount of technical dialogue and subsequent negotiations with the bidders.

“It is an important departure from the last bid for the Anholt offshore wind farm in 2010 where we ended up receiving only one offer” he said. “Instead of sitting behind closed doors this time, we have chosen to implement some of the most open and transparent procurement measures the industry has ever seen. It has secured a massive interest in the Danish projects.”

The rest of the tender specifications will be published in early 2014 and will include among other things additional economic conditions for the establishment and operation of the park as well as a draft concession agreement. The deadline for applying for prequalification is the 23rd April 2014.

For additional information:

Danish Energy Agency

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