DONG Energy, one of the world’s leading offshore wind developers, announced Monday that it had officially inaugurated the German Gode Wind 1 and 2 offshore wind farms, together amounting to 582 megawatts of capacity.
The Gode Wind farms have been under development since the final investment decision for the 582 megawatt (MW) projects was made back in 2013. Not long after, Siemens was awarded the contract to supply 6 MW wind turbines, with construction expected to be completed in 2016. Along the way, DONG Energy divested 50% ownership of Gode Wind 1 to Global Infrastructure Partners. DONG Energy still remains 50% owner of both Gode Wind 1 and 2, while four Danish pension funds own a total of 50% of Gode Wind 2.
Situated 45 kilometers off the German coast in the North Sea, Gode Wind 1 and 2 consists of 97 of Siemens’ 6 MW wind turbines, with the last turbine installation completed nearly a year ago. Together, the two wind farms will provide the equivalent electricity to supply 600,000 German households.
“We’re proud to officially inaugurate our latest German offshore wind farms today,” said Samuel Leupold, member of DONG Energy’s Executive Committee and CEO of Wind Power, at the inauguration of the projects. “The wind turbines at Gode Wind 1 and 2 are already generating clean power off the coast of Norddeich, and our next German offshore wind farm, Borkum Riffgrund 2, is well underway. These large-scale projects are testament that offshore wind has become a reliable, predictable and cost effective technology which will contribute significantly to Germany’s energy transition.”
DONG Energy isn’t done in the German North Sea, however, having recently been awarded the right to build three new offshore wind projects under Germany’s most recent and historic competitive auction for offshore wind projects. DONG Energy will aim to build the 240 MW OWP West, the 240 MW Borkum Riffgrund West 2, and the 110 MW Gode Wind 3. All three projects are expected to be commissioned in 2024, awaiting confirmation of final investment decision by DONG Energy.
The historic nature of the auction was due to the fact that three of the projects awarded — including OWP West and Borkum Riffgrund West 2 for DONG Energy — will be built with no subsidy, the first time this has ever happened in the world.
“Price levels are dropping quicker than anyone thought,” said Giles Dickson, the CEO of the European wind energy trade body WindEurope, in the wake of the auction announcements. “These deals have completely changed the picture for offshore wind. Now they should also change the perception of policy makers. Offshore wind is no longer an expensive niche technology. It is a strategic industrial sector for Europe that can deliver competitive energy for its citizens and businesses.”
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