Dong gets green light for 400MW  Anholt despite high prices Dong built the Horns Rev wind farm off Denmark at lower cost than Anholt

Dong gets green light for 400MW Anholt despite high prices

Denmark’s Dong Energy has been given the green light to build a 400MW offshore wind farm at Anholt despite its high $1.65bn cost. Siemens will supply the turbines.

Siemens will deliver 111 of its 3.6MW turbines which will be produced at its factory at Brande in Denmark.

But the cost of building Anholt will be far higher than other Danish offshore wind farms such as Horns Rev and Rødsand.

Dong will be paid Dkr 1.05/KwH ($0.17/KwH) – around 50% more than the company gets at Horns Rev, the wind farm off the coast of Jutland that was opened last year.

Construction of the wind farm will represent a total investment of approximately DKr10bn ($1.65bn).

Anholt, located in the Kattegat - an area between Sweden and Denmark, will deliver green power to 400,000 Danish households. It will start producing electricity in 2012/13.

A broad majority in the Danish Parliament has accepted Dong’s plans - all the main opposition parties are backing the government. Dong was the only company to bid for the Anholt wind farm.

“With this decision we have taken another big step towards a transformation of the Danish energy supply to the benefit of both of the climate and the security of supply”, says Minister of Energy and Climate, Lykke Friis.

Accountants Ernst & Young’s independent assessment of Dong’s plans concludes that the price is reasonable in the light of the current market situation and the conditions of the tender.

“Building Anholt offshore wind farm is an important milestone in the expansion of green energy production in Denmark,” says Anders Eldrup, chief executive officer of Dong.

Siemens Energy chief executive Wolfgang Dehen adds: "The new order for the Anholt offshore wind farm further strengthens our position as the global leader in offshore wind power.”

Published: Tuesday, June 22 2010

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