Read News Magazine (pdf) - Offshore Center Danmark
Read News Magazine (pdf) - Offshore Center Danmark Read News Magazine (pdf) - Offshore Center Danmark
Sweden opts out Swedes drop Offshore Wind Farm Increasing costs delay Roedsand II with at least one year. Shortly before the publication of the ON/OFF Yearbook 2008 the Swedish energy company E.ON Wind Sweden informed that the company does not wish to be committed to build Roedsand II Offshore Wind Farm planned to be established in the waters of Lolland-Falster in the southern part of Denmark. E.ON estimates it unprofi table to carry out the project, as the costs have increased considerably since the invitation to tender was put forward – and consequently rejects to continue. - We agreed to enter the project in the hope that we, as one of the world’s largest companies within the industry, had the possibility to infl uence the price development. Despite the fact that we from the beginning were willing 30 Offshore Center Danmark Yearbook 2008 to undertake a larger risk during the preliminary phase, the project seems to bee too expensive, the managing director of E.ON Wind Sweden, Lennart Fagerberg, informs in a press release. - We regret the decision we had to make, however, we have to realize that there is no other alternative. As early as in May 2007 we realized that Roedsand II was a risky project as the budget and the economy were close to the impossible, however, due to the increased costs the project is no longer fi nancially justifi able, Lennart Fagerberg states. Roedsand II will be built The permission to build Roedsand II is a result of a political energy agreement of March 2004 entered between the government and a majority in the Danish Parliament, where it was agreed to invite to tender for 2 offshore wind farms, each with a capacity of 200 MW. The tender, however, was drawn up in a way that it only gave the consortium the right to build the wind farm – and not the duty. - It is of course unsatisfactory that a company of E.ON‘s size drops the project, and I have consequently asked the Danish Energy Authority to investigate the possibility that at future offshore wind farm tenders the companies will be committed to their bids, so that we will not face the same situation again, the Danish Minister for Climate and Energy, Mrs Connie Hedegaard, informs, as she continues: - There is no doubt that Roedsand II will be built. The fact that E.ON is no longer of the opinion that the company can live up to the bid and consequently has withdrawn the commitment is very unsatisfactory. However, we need to move forward very fast. 36% increase of costs Upon an invitation for tender, May 31 2006 the Danish Energy Authority granted Energy
E2, DONG Wind A/S (today DONG Energy) and E.ON Sweden the right to carry out preliminary studies for Roedsand II Offshore Wind Farm. As a part of the tender a fi xed accounting price of electricity from Roedsand II at DKK 0.499 kWh for 10 TWh was set. Later, E.ON Sweden AB assumed the entire concession, and May 31 2007 the company fi led an application for permission to build, including an Environmental Impact Assessment. In accordance with the bid, October 31 2007 the Danish Energy Authority granted permission to build the offshore wind farm. According to the calculations made by Offshore Center Danmark the costs to install 1 MW in 2002 amounted to approx. EUR 1.75 millions, when Horns Reef at the North Sea was built, whereas the costs today amount to approx. EUR 2.75 millions. This equals an increase of 36% in 5 years. - The increasing costs for establishment of offshore wind farms represent a big challenge for the wind power industry, and for the same reason, countries like Germany have chosen to increase the government’s accounting price in order to secure that energy companies and operators assume the large preliminary costs. This decision has almost immediately caused a signifi cantly larger interest to take on new projects, the coordinator of the offshore wind segment within Offshore Center Danmark, Morten Holmager informs. As a result of E.ON Wind Sweden’s decision, the Danish Energy Authority estimates a delay of Roedsand II of at least one year. The wind farm was planned to be built by 2010. The fi rst phase of the Roedsand I Offshore Wind Farm was built by July 2003, with a power output of 166 MW. ■ Danish-German Offshore Wind Network Event Windenergie Agentur Bremerhaven/Bremen e.V. meets Offshore Center Danmark Hotel Britannia, Torvegade 24, Esbjerg April 22-23, 2008 The German offshore wind market is expected to take off already this year. Offshore Center Danmark offers all members a possibility to gain knowledge about the market and contacts in Germany. Offshore Center Danmark invites all members to join us for an exciting offshore wind network event in April. The event is an excellent opportunity to meet and network with major Danish and German players on the offshore wind market. The event will feature presentations, one2one meetings with other companies as well as general networking opportunities. Contact Offshore Center Danmark for further information. Niels Bohrs Vej 6 • 6700 Esbjerg E-mail: info@offshorecenter.dk • Tlf. 36973670 www.offshorecenter.dk Offshore Center Danmark Yearbook 2008 31
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- Page 3 and 4: Cont. from page 1 The Yearbook 2008
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- Page 9 and 10: Offshore Wind • No. of employees
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- Page 15 and 16: Maersk goes horizontal in Qatar Hor
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Sweden opts out<br />
Swedes drop <strong>Offshore</strong><br />
Wind Farm<br />
Increasing costs delay Roedsand II with at<br />
least one year.<br />
Shortly before the publication of the ON/OFF<br />
Yearbook 2008 the Swedish energy company<br />
E.ON Wind Sweden informed that the company<br />
does not wish to be committed to build<br />
Roedsand II <strong>Offshore</strong> Wind Farm planned to<br />
be established in the waters of Lolland-Falster<br />
in the southern part of Denmark. E.ON<br />
estimates it unprofi table to carry out the<br />
project, as the costs have increased considerably<br />
since the invitation to tender was put forward<br />
– and consequently rejects to continue.<br />
- We agreed to enter the project in the hope<br />
that we, as one of the world’s largest companies<br />
within the industry, had the possibility to<br />
infl uence the price development. Despite the<br />
fact that we from the beginning were willing<br />
30 <strong>Offshore</strong> <strong>Center</strong> <strong>Danmark</strong><br />
Yearbook 2008<br />
to undertake a larger risk during the preliminary<br />
phase, the project seems to bee too<br />
expensive, the managing director of E.ON<br />
Wind Sweden, Lennart Fagerberg, informs<br />
in a press release.<br />
- We regret the decision we had to make,<br />
however, we have to realize that there is no<br />
other alternative. As early as in May 2007 we<br />
realized that Roedsand II was a risky project<br />
as the budget and the economy were close to<br />
the impossible, however, due to the increased<br />
costs the project is no longer fi nancially<br />
justifi able, Lennart Fagerberg states.<br />
Roedsand II will be built<br />
The permission to build Roedsand II is a result<br />
of a political energy agreement of March<br />
2004 entered between the government and a<br />
majority in the Danish Parliament, where it<br />
was agreed to invite to tender for 2 offshore<br />
wind farms, each with a capacity of 200<br />
MW. The tender, however, was drawn up in a<br />
way that it only gave the consortium the right<br />
to build the wind farm – and not the duty.<br />
- It is of course unsatisfactory that a company<br />
of E.ON‘s size drops the project, and I<br />
have consequently asked the Danish Energy<br />
Authority to investigate the possibility that at<br />
future offshore wind farm tenders the companies<br />
will be committed to their bids, so that<br />
we will not face the same situation again, the<br />
Danish Minister for Climate and Energy, Mrs<br />
Connie Hedegaard, informs, as she continues:<br />
- There is no doubt that Roedsand II will be<br />
built. The fact that E.ON is no longer of the<br />
opinion that the company can live up to the<br />
bid and consequently has withdrawn the commitment<br />
is very unsatisfactory. However, we<br />
need to move forward very fast.<br />
36% increase of costs<br />
Upon an invitation for tender, May 31 2006<br />
the Danish Energy Authority granted Energy