In the first of two auction rounds, the Bundesnetzagentur (Germany’s Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway) awarded Danish company DONG Energy the right to build three offshore wind projects in the German North Sea. The three projects are planned to be commissioned in 2024, subject to Final Investment Decision by DONG Energy in 2021.
For two of the projects – OWP West and Borkum Riffgrund West 2 – DONG Energy made bids at zero EUR per MWh, i.e. these projects will not receive a subsidy on top of the wholesale electricity price. This is a symbolic first for the industry.
Samuel Leupold, Executive Vice President and CEO of Wind Power at DONG Energy, stated, “The zero subsidy bid is a breakthrough for the cost competitiveness of offshore wind, and it demonstrates the technology's massive global growth potential as a cornerstone in the economically viable shift to green energy systems. Cheaper clean energy will benefit governments and consumers – and not least help meet the Paris COP21 targets to fight climate change.”