Four vie for Denmark's Horns Rev 3

The Danish Energy Agency has received four applications for prequalification to bid for the concession to build and operate the 400MW Horns Rev 3 offshore wind farm.

Denmark's government welcomed the multiple applications for prequalification after its deadline for submissions passed yesterday.

When Denmark’s last concession was tendered – for Anholt in 2010 – there was only one bidder. That was Dong Energy, the Danish semi-state owned energy giant which brought that 400MW offshore wind farm online last year.

The Danish government has not yet named the pre-qualified bidders, expecting to do so in about a week.

Dong’s bid for involvement in Horns Rev 3 is a virtual certainty. Last year Recharge revealed that Germany’s E.ON and Vattenfall of Sweden had also shown preliminary interest in the new tender round.

Minister for climate, energy and buildings Rasmus Helveg Petersen said:  “We have worked hard to organise the tender in order to create as much competition as possible to build Horns Rev 3. It is therefore good news that four companies have applied to be prequalified to submit a bid.

“This will increase competition and ensure we get the offshore wind farm at the lowest possible price.”

Horns Rev 3 is the first of two offshore farms to be tendered within the framework of the Energy Act of 2012.

The prequalification is an important part of a new procurement model, which includes both a considerable amount of technical dialogue and negotiations with the bidders. The requirements are customised to create more competition and bring new players and financial institutions to the Danish market, according to the Danish Energy Agency.

Deadline for preliminary bids is in September, while the deadline for binding tenders is in February 2015. Soon after that concession contract and licenses will be awarded.