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Shell-led team wins 700MW Dutch offshore wind tender

The consortium, also formed by Van Oord, Eneco and Mitsubishi, bid at a reduced price and could operate the projects without subsidies after seven years.

A group led by Dutch oil major Shell has emerged as the winner to develop 700MW of offshore wind in the Netherlands.

Shell was joined by contractor Van Oord, energy firm Eneco and Diamond Generating Europe, a subsidiary of Mitsubishi Corp. The consortium produced a bid of €54.50 per MWh, even lower than the €72.70 per MWh winning bid from Dong in the Netherlands in July, a world record at the time.

The consortium was an unsuccessful bidder in the previous tender but Shell said at the time it was determined to compete again.

The group fended off bids from 25 other parties to develop the Borssele III and IV sites which are expected to be operational by 2023. The projects will receive subsidies of €300 million, far below the €5 billion originally anticipated when the policies were first drawn up. The Dutch government said they could operate without subsidies in the near future.

“If the electricity price develops as we expect, in seven and a half years’ time subsidies will no longer be required for the production of electricity from offshore wind farms,” said Henk Kamp, Dutch Minister of Economic Affairs. “That brings the government's aim for renewables to compete with fossil fuels without subsidy within reach.”

Kamp added that the tender results prove that offshore wind can provide economic value in addition to being part of an energy transition.

Meanwhile, Mitsubishi also announced it has joined Eneco as a shareholder in the 370MW Norther offshore wind farm in Belgium, with a joint venture between Diamond Generating Europe and Eneco holding 50 percent of the project. The project is slated to begin construction early next year and will cost about €1.2 billion.