Siemens Gamesa 10 Megawatt Wind Turbine Set For World’s 1st Zero-Subsidy Offshore Wind Farm

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Spanish wind turbine giant Siemens Gamesa Renewable Energy is in final talks to supply its 10 megawatt offshore wind turbines to the four offshore wind farms being built in the Hollandse Kust Zuid Wind Farm Zone which, upon completion, could have over 1,400 megawatts worth of capacity.

Siemens Gamesa announced on Monday that it was in “final negotiations” to supply its new SG 10.0-193 DD offshore wind turbines to the 350 MW Hollandse Kust Zuid 1 & 2 (‘Hollandse Kust Zuid’ is Dutch for Holland Coast South) which was awarded to Swedish power company Vattenfall in March of 2018 at zero subsidy — a world first.

Located 22 kilometers off the west coast of the Netherlands and with a maximum capacity of 750 MW, Hollandse Kust Zuid 1 & 2 is expected to generate enough power enough for the equivalent of up to 1.5 million households. Offshore works have already begun and construction must be completed in 2023.

While Hollandse Kust Zuid 1 & 2 was not the first offshore wind farm to be awarded a zero-subsidy contract — an honor that is believed to have been won in 2017 by Ørsted for the 240 MW OWP West and the 240 MW Borkum Riffgrund West 2 — it will nevertheless be the first to completion, as the formerly awarded projects are set for completion in 2024.

“This news shows zero-subsidy bids are possible for some developers in some markets not least where Governments take on and manage a share of the project risk,” said Giles Dickson, CEO of the European wind energy trade body WindEurope, in 2018. “In this instance the Dutch Government taking care of the grid connection is a significant factor. Plus the Dutch Government has successfully minimised the risk linked to offshore wind by giving clear visibility about future market volumes. And the new Dutch Government has committed to bring in a carbon floor price at national level which will help the business case for offshore wind.

“Wind energy is showing again and again that it can deliver ever more capacity for less cash. That’s the key message other governments should take from this: they should revise their ambition upwards in their national energy plans and offshore wind is a great way to help them do this.”

On top of the contract for Hollandse Kust Zuid 1 & 2, Siemens Gamesa and Vattenfall are also looking to sign a supply contract for Hollandse Kust Zuid 3 & 4, if Vattenfall is successful in the tender.

“We look very much forward to increasing our collaboration and teamwork with Vattenfall through these projects. Vattenfall once again demonstrates their confidence and interest in our products,” said Andreas Nauen, CEO of the Siemens Gamesa Offshore Business Unit.

“This is a very important development for us,” added Gunnar Groebler, Head of Business Area Wind at Vattenfall. “We are proud to have teamed up with Siemens Gamesa, the company has been a strong and reliable partner in other projects and we’re happy to extend our collaboration to Hollandse Kust Zuid.”

However, competition is strong for this project, and Danish offshore wind giant Ørsted announced last month that it had already made a Final Investment Decision to proceed with the development of the project if it were to be awarded the contract by the Dutch Government.

“We’re strongly committed to the Netherlands, and we believe that our bid for Holland Coast South 3 & 4 offers significant benefits for the Dutch society in terms of clean and cost-competitive energy as well as industrial development,” said Henrik Poulsen, CEO and President of Ørsted, speaking in March. “By bringing our more than 25 years of experience in developing, constructing and operating offshore wind farms, we are a highly reliable partner for the Dutch government in taking the next step towards reaching the Netherlands’ ambitious target of 11.5 GW offshore wind by 2030.”

Regardless of which developer wins the contract for Hollandse Kust Zuid 3 & 4, it would not be surprising to see Siemens Gamesa’s new SG 10.0-193 DD offshore wind turbines used. Unveiled earlier this year, the SG 10.0-193 DD offers 30% more annual energy production than its predecessors, the SG 8.0-167 DD (an 8 MW turbine), and measures in with a rotor diameter of 193 meters and blades measuring in at 94 meters.