January 26 (Renewables Now) - German energy major RWE AG (ETR:RWE) has signed a concession agreement with the Danish Energy Agency for the construction of the 1-GW Thor wind project off the Danish west coast.
Under the concession, RWE is entitled to build and operate Denmark's largest offshore wind farm so far for a period of 30 years, the energy group said on Tuesday.
Once up and running in 2027, the wind farm is expected to generate enough electricity to cover the energy needs of over one million Danish households. It will be built without state aid with investment costs estimated at about DKK 15.5 billion (USD 2.34bn/EUR 2.08bn).
The Essen-based group secured the concession in a lottery draw at the beginning of December after more than one bidder offered to build the project at a minimum price of DKK 0.01 (USD 0.0015/EUR 0.0013) per kWh.
This is the second offshore wind project for RWE in Denmark after its 20% participation in the Rødsand 2 offshore wind farm south of the Danish island of Lolland. The 207-MW park has been in operation since 2010.
"Scandinavia, and Denmark in particular, is an important strategic growth market for us. Denmark not only has very favourable wind conditions, the country also has ambitions to deploy even more offshore wind power," said Pal Coldevin, Executive Vice President for Offshore Development Nordics, Poland and Baltics at RWE Renewables.
The Thor project supports RWE's efforts to triple its offshore wind output to 8 GW by the end of the decade from 2.4 GW currently.
(DKK 1 = USD 0.151/EUR 0.134)