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Offshore wind costs hit record low in new Dutch Project

Two new massive 350MW arrays in the Netherlands will supply power to Dutch people at €87/MWh, which translates into under 10 cents/kWh.

Mihai Andrei
July 7, 2016 @ 2:55 pm

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Two new massive 350MW arrays in the Netherlands will supply power to Dutch people at €87/MWh, which translates into under 10 cents/kWh.

Princess Amalia Wind Farm in the North Sea, photo by Ad Meskens

Dong Energy, a Danish company aims to supply electricity at €72.70/MWh (US$80.40), not including transmission costs. The cables will add about €14/MWh according to estimates. This really sets a new industry standard, because until now, the best price for wind energy was €103/MWh by Vattenfall in Denmark last year.

“It was a result that was well beyond anyone’s expectations,” said Oliver Joy, spokesperson for the European Wind Energy Association.

Dong will build 700MW worth of offshore turbines, taking advantage of relatively low steel prices. They also took advantage of low oil prices to get a bargain on installation vessels which would otherwise be used for drilling rigs. All in all, it seems like oil’s decline coincides with a great increase in renewable energy. In the Netherlands, household consumers can choose to buy renewable electricity. The country also imports renewable energy from Norway.

Of course, the Netherlands, like many Western and Northern European countries has very suitable conditions for wind energy. As a result, emissions from energy have dropped significantly, from 186 megatonnes in 2004 to just 156 ten years later.

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