This week, the Dutch Enterprise Agency published the final version of the Project and Site Description for Borssele Wind Farm Sites I and II, as well as the application forms for the tenders opening on 10 April. The application deadline is 12 May 2016 at 05:00 PM (17.00) Dutch time.
Parties interested to participate in the SDE+ subsidy and permit tender for Borssele Wind Farm Sites I and II can submit a single application covering both sites or one separate application for each individual site.
The party meeting all requirements and making the lowest bid will receive both the subsidy and the permit to build and operate a wind farm. Important conditions of the tenders are set out in the Ministerial Order for Offshore Wind Energy 2015 (Regeling windenergie op zee 2015). These are:
- The equity of the party requesting the SDE+ subsidy and permit shall be no less than 10% of the total investment costs. In the event the equity shall be less than 20% of the investment, the request will have to be accompanied by aletter of intent by a financial institution financing the difference between 20% and the equity.
- The subsidy amount is capped at € 2,500,000,000 per site. The tender amount shall not exceed € 0.124 per kWh.
- The applications will be ranked on the basis of the tender amount.
- The SDE+ subsidy will be granted under the conditions precedent that:
- the winner of the tender and the Dutch State will enter into a realisation agreement within 2 weeks;
- the winner of the tender will provide a bank guarantee of € 10,000,000 within 4 weeks; and
- the winner of the tender will provide a second bank guarantee in an amount of € 35,000,000 within 12 months.
- The SDE+ subsidy will be granted for a 15-year period.
- The wind farm must be commissioned by the later of (i) 5 years as from the date the subsidy is granted, and (ii) 5 years as of the date on which the Wind Farm Site Decision has become irrevocable.
- The base electricity price shall be equal to € 0.029 per kWh, the maximum number of full load hours shall be equal to the net P50 value of the full load hours stated in the subsidy request.