Danish Government Released an EOI for Thor Offshore Wind Farm

On September 25, 2020, The Danish Energy Agency has initiated the tender process for the Thor Offshore Wind Farm. The Danish Government has floated the Expression of Interest (EOI) in the market, and the last date to apply for the pre-qualification is December 1, 2020.

Thor Offshore Wind Farm will be Denmark’s largest offshore wind farm to date, and it is envisaged to be completed and commissioned by the end of Q4, 2027. Upon completion of the project, it can provide electricity to 800,000 Danish households.

The estimated budget for the project is USD 2.4 billion (DKK 15.5 billion). The project is located in the North Sea west of Nissum Fjord, at a distance of min. 20 km from the shore, Denmark.

Conventional Tender Procedure and Tentative timeline

The tender process started with the Expression of Interest stage, where the Danish Energy Agency selects the potential companies with adequate financial and technical capacity to participate in the tender. For the pre-qualified companies, the main contract tender will be released, and upon the completion of the competition, the project will be awarded to the company with the lowest bid price.

The tender document contains the following:

 -Tender Conditions

 -Pre-qualification document

 -A draft concession agreement

 -All necessary licenses, etc.

- Ongoing preliminary studies of the area for the wind farm

New inclusion in the tender document:

The Danish offshore wind farm tenders include the offshore substation and the grid connection from the wind farm to the onshore point of connection. Previously, the Danish (Transmission System Operator)TSO Energinet has been responsible for constructing and operating the offshore substation and export cables and has hitherto financed the cost over the tariffs. Now this will be the responsibility of the winner as part of the project scope, and it will be financed together with the overall subsidies for establishing the wind farm.

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