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Analysis on the furthering of competition in relation to the establishment of large off-shore wind farms in Denmark. Main report; Analyse vedroerende fremme af konkurrence ved etablering af store havmoelleparker i Danmark. Hovedrapport

Abstract

The report, based on the 2010 tender for Anholt Offshore Wind Farm, is an analysis of how competition in the offshore wind power area can be increased, and a lower consumer price achieved. The study concludes that there is broad support for the Danish tender model among relevant parties, just as the process of working with Danish authorities and connecting to the power grid were viewed positively by potential investors in Danish offshore wind farms. But the report also found that inflexible guidelines in the Anholt Offshore Wind Farm tender contributed to a higher settlement price. One example singled out by the report was the threat of drastic fines and short deadlines. Moreover, the tender also occurred at a time when the production of wind turbines and foundations could not keep pace with increasing demand, particularly in Germany and the United Kingdom. Deloitte forecasts that the price for building and operating offshore wind farms, despite the increasing demand for offshore wind turbines, can be cut by between 25% and 30% by 2020, given the right framework guidelines and tender conditions. Applied to the planned Kriegers Flak Offshore Wind Farm, this calculation would result in a settlement price of between DKK  More>>
Authors:
Joergensen, Carsten; Enevoldsen, M [1] 
  1. Deloitte, Copenhagen (Denmark)
Publication Date:
Apr 15, 2011
Product Type:
Technical Report
Report Number:
NEI-DK-5648
Resource Relation:
Other Information: 70 figs., 29 tabs.
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; DENMARK; WIND TURBINE ARRAYS; OFFSHORE SITES; COST; CONSTRUCTION; CONTRACTS; CONTRACT MANAGEMENT; OPERATING COST
OSTI ID:
1035935
Research Organizations:
Klima- og Energiministeriet, Copenhagen (Denmark); Deloitte, Copenhagen (Denmark)
Country of Origin:
Denmark
Language:
Danish
Other Identifying Numbers:
TRN: DK1201081
Availability:
Also available at http://www.risoe.dtu.dk/rispubl/NEI/NEI-DK-5648.pdf; OSTI as DE01035935
Submitting Site:
DK
Size:
203 pages
Announcement Date:
Mar 09, 2012

Citation Formats

Joergensen, Carsten, and Enevoldsen, M. Analysis on the furthering of competition in relation to the establishment of large off-shore wind farms in Denmark. Main report; Analyse vedroerende fremme af konkurrence ved etablering af store havmoelleparker i Danmark. Hovedrapport. Denmark: N. p., 2011. Web.
Joergensen, Carsten, & Enevoldsen, M. Analysis on the furthering of competition in relation to the establishment of large off-shore wind farms in Denmark. Main report; Analyse vedroerende fremme af konkurrence ved etablering af store havmoelleparker i Danmark. Hovedrapport. Denmark.
Joergensen, Carsten, and Enevoldsen, M. 2011. "Analysis on the furthering of competition in relation to the establishment of large off-shore wind farms in Denmark. Main report; Analyse vedroerende fremme af konkurrence ved etablering af store havmoelleparker i Danmark. Hovedrapport." Denmark.
@misc{etde_1035935,
title = {Analysis on the furthering of competition in relation to the establishment of large off-shore wind farms in Denmark. Main report; Analyse vedroerende fremme af konkurrence ved etablering af store havmoelleparker i Danmark. Hovedrapport}
author = {Joergensen, Carsten, and Enevoldsen, M}
abstractNote = {The report, based on the 2010 tender for Anholt Offshore Wind Farm, is an analysis of how competition in the offshore wind power area can be increased, and a lower consumer price achieved. The study concludes that there is broad support for the Danish tender model among relevant parties, just as the process of working with Danish authorities and connecting to the power grid were viewed positively by potential investors in Danish offshore wind farms. But the report also found that inflexible guidelines in the Anholt Offshore Wind Farm tender contributed to a higher settlement price. One example singled out by the report was the threat of drastic fines and short deadlines. Moreover, the tender also occurred at a time when the production of wind turbines and foundations could not keep pace with increasing demand, particularly in Germany and the United Kingdom. Deloitte forecasts that the price for building and operating offshore wind farms, despite the increasing demand for offshore wind turbines, can be cut by between 25% and 30% by 2020, given the right framework guidelines and tender conditions. Applied to the planned Kriegers Flak Offshore Wind Farm, this calculation would result in a settlement price of between DKK 0.781 and DKK 0.979/kWh. The settlement price for Anholt Offshore Wind farm is currently DKK 1.051/kWh. The report recommends that the tender be altered to permit a greater dialogue with potential bidders, and to allow for information about the tenders to be spread internationally. Deloitte's report is based on interviews with individuals from a number of energy companies, investors, and public agencies, and takes into account other countries' experiences building offshore wind farms, as well as an evaluation of the competitive conditions within the offshore wind sector. (ENS)}
place = {Denmark}
year = {2011}
month = {Apr}
}