Swedish state-owned energy firm Vattenfall has been awarded the permit to build the twin Hollandse Kust Zuid offshore wind farms, located 22km off the coast of the Netherlands. Upon completion in 2022, the two 350 MW wind farms will be the first in the world to be built without government subsidies.
The Hollandse Kust Zuid project is not the first to be given a subsidy-free tender. Last year, Germany held the first auction that was open to zero-subsidy bids, though the winning project is not scheduled for completion until 2024.
Following Germany’s tender, the Dutch government opened offers to any developer willing to submit a zero-subsidy bid — under the condition that the wind farm would be fully operational within five years.
“Winning the bid for Hollandse Kust Zuid is a result of our continuous cost reduction efforts along our entire value chain and the solid track record and portfolio approach of our company,” says Gunnar Groebler, Vattenfall senior vice president business area wind.
“We are very happy to enlarge our contribution in making the Dutch energy system more sustainable and support our customers, large and small, on their way to become climate smarter.”
The Hollandse Kust Zuid wind farm will ultimately produce enough energy to power 1.5 million homes.