The Government of the Netherlands has announced recently through a press release that it will be building the largest and cheapest wind farm in the world.
The first phase of the Borssele offshore wind farm will be 700MW, and generate 22.5% more electricity than anticipated, enough power for 1 million homes. The government would like to expand the initial wind farm from 700MW to 3,500MW with the addition of 4 more wind farms. To give some perspective, the largest wind farms built in Europe last year, on average, was roughly 337.9MW.
According to the press release:
‘Under the Dutch system, interested market parties could bid in the subsidy and permit tender, with a maximum price cap set at 12.4 Euro cent per kilowatt hour. Dong Energy submitted the lowest bid with an average of 7.27 Euro cent per kilowatt hour. This is 5.1 Euro cent less than the originally estimated compensation. This results in a cost reduction of Euro 2.3 billion over the 15-year period that the SDE+ subsidy compensation is available. Until now the lowest auction price for constructing and operate a wind farm was 10.3 Euro cent per kilowatt hour, for a wind farm off the coast of Denmark.’
The Minister of Economic Affairs, Henk Kamp, said:
“Worldwide it has never happened before that an offshore wind farm can be built at such low cost. The Dutch system in which companies have to compete with each other while the government regulates all conditions for building the wind farm has proved to be very successful. This reduction of cost represents a major breakthrough in the transition to more sustainable energy.”
“Over the next few years the five largest wind farms in the world will be built in the Netherlands. With the development of offshore wind farms we are building a new economic sector. The development of offshore wind farms has already created around 4,000 jobs in the Netherlands, such as in manufacturing, construction and research. This is expected to grow to 10,000 jobs by 2020.”
This offshore wind farm will help to contribute to the Government of the Netherlands’ goal of achieving 16% sustainable energy by 2023.