The Swedish energy group Vattenfall has signed its final agreement with the Danish Energy Agency for two offshore wind projects with a total capacity of at least 1.8 gigawatts.
Project Details
The agreements include the 800 megawatt Hesselø project in Kattegat and the 1 gigawatt Holmsland project in the North Sea, both of which are expected to be operational by 2032.
The Holmsland project was previously known as North Sea I Mid and its name has been changed to reflect its location off the coast of Denmark near Hvide Sande.
Financial Terms and Impact on Renewable Energy Capacity
The agreements follow Vattenfall's successful bids for both projects in the Danish offshore wind auction in August. The company secured the North Sea project with a bid of 504 Danish kroner ($78) per megawatt hour and its successful bid for Hesselø at 542 Danish kroner ($84) per megawatt hour. The agreed prices are guaranteed for twenty years after the completion of the developments.
Hesselø is located about 30 kilometers off the coast of Denmark, while Holmsland is planned to be about 20 kilometers from shore. Together, these projects are expected to significantly increase the country's offshore renewable energy capacity.
Vattenfall emphasized that the construction of both wind farms still depends on final investment decisions and necessary regulatory approvals.
Vattenfall currently manages five offshore wind farms in Denmark, generating approximately 6.5 terawatt hours of electricity annually. The company is also developing large offshore wind projects in other parts of Europe, including Nordlicht in Germany and Zeevonk in the Netherlands.
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