Denmark Launches Tender for Its Largest Offshore Wind Farm

Denmark on Friday launched the tendering process for what will be its largest offshore wind farm - Thor.

Thor will have a capacity of 800-1000 MW when it is fully installed and connected to the grid, which is expected to happen by 2027, at the latest.

"The publication of the contract notice and the tender material kick-starts the tender process for Thor Offshore Wind Farm. The process initially includes a pre-qualification phase where the Danish Energy Agency identifies the companies with sufficient financial and technical capacity to participate in the tender. This is followed by a negotiation phase with the pre-qualified bidders that potentially may lead to adjustments in parts of the tender with an aim to lower the bid price," the Danis Energy Agency said Friday.

The tender model for Thor follows the same process as previous Danish offshore wind tenders which have achieved historically low prices internationally, the DEA said.

As something new, the agency said, the tender includes the offshore grid connection, including the offshore substation, landing cables and a high-voltage onshore substation as well as flexible size of the park between 800-1000 MW. This will allow bidders to optimize the dimensions of export cables and wind farm capacity, making the overall solution as cost-effective as possible.

The deadline for application for prequalification is no later than December 1, 2020, and potential bidders will in the period from October 1 to November 16, 2020, be able to ask questions in writing to the Danish Energy Agency about the tender. 

The final tender deadline for the tender is expected to be November 8, 2021.  

Thor is the first of the three offshore wind farms agreed to be established in the Danish Energy Agreement from 2018. It will be located in the North Sea at least 20 km from the coast. Thor must be fully established and connected to the grid by the end of 2027 at the latest.
The authorization for the operation of the wind farm will be given for 30 years with the possibility of extension for 5 years. 

The total investment costs for Thor are estimated at a total of DKK 15.5 billion (USD 2,4 billion). Thor will be able to supply electricity to around 800,000 Danish households.