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Fri January 28 2022

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Denmark draws lots for largest offshore wind contract

30 Nov 21 Lots will be drawn to identify the developer of Denmark’s largest offshore wind farm after the bidding turned out to be very close.

The Danish Energy Agency is seeking to award the contract for the Thor Offshore Wind Farm, which will be located in the North Sea at least 22km from the coast. It will be able to supply electricity to about 800,000 Danish households.

More than one bidder has offered the minimum price per kWh and largest wind farm capacity and so the contract award will, in accordance with the tender conditions, be decided by drawing lots. The drawing of lots will take place tomorrow (1st December) at the Danish Energy Agency.

The involved bidders are being invited to participate in the lottery process in order to ensure full transparency.

The lottery process will be supervised by an independent auditor and the states’ legal advisor, Kammeradvokaten, in order to ensure that the lottery process meets the procurement rules.

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Once the lottery process has been carried out, the bid winner will be announced by a press release from the Ministry of Climate, Energy & Utility and the Danish Energy Agency

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click to enlarge

According to the tender conditions, the concession is awarded to the bidder that offers the lowest bid price. If there are several bidders with the same low bids, the bidder with the largest wind farm capacity wins. If both bid price and wind farm capacity are equal, the tender will be decided by drawing lots.

The wind farm has been tendered with a flexible capacity of 800-1,000MW and the landing of cables is included in the tender. Thor must be fully established and connected to the grid by the end of 2027 at the latest. The authorisation is given for 30 years with the possibility of extension for five years. The total investment costs for Thor are estimated at a total of DKK15.5bn (£1.8bn).

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