FEATURE SPONSOR
LEGAL EAGLES FRANCE – OFFSHORE WIND FARMS CALLS FOR TENDER
A second call for tender for offshore wind farms totalling up 1 GW of new capacity is currently ongoing in France.
The bids for the two projects located in Normandy (Le Tréport) and on the Atlantic coast (near the islands of Noirmoutier and Ile d’Yeu) are to be submitted by 29 November 2013 and the winning bidders should be selected in the first semester of 2014. The two projects are expected to be commissioned in 2021-2023.
FURTHER STEP FORWARD
This second call for tender is a step forward towards the achievement by France of its 2020 target of 6 gw offshore wind farms installed capacity. Given this target, its technically less challenging sites and a long term PPA with EDF, which compensates against the lower wind speed average, France is seen by some players as the only European offshore wind market offering tangible growth opportunities at the moment with genuine opportunities for diversification.
CONDITIONS
The conditions for this second call for tender are quite similar to the ones used by the French government for the first call for tender, although some lessons were learned from the first experience. By way of background, four projects are currently being developed as a result of the first call for tender. Three of them were awarded to the consortium composed of EDF En and Dong Energy (Courseulles, Fécamp and Saint nazaire, totalling up approx. 1,500 MW) and one to a consortium led by Iberdrola (Saint Brieuc).
TENDER SYSTEM DETAILS
Under the French offshore wind farms calls for tender system, the winning bidder is granted the right to develop a project and to enter into a 20-year term PPA with EDF, at a fixed price, determined in its bid. The requirements in relation to the bids are extremely complex, as bidders have to provide the intended
Such studies should allow the winning bidders to confirm their technological choices and their bid price. The State can withdraw the project if it determines at this stage that the winning bidder is no longer able to implement the project for the price proposed in its bid. Selected bidders can also withdraw in limited circumstances.
King & Spalding
industrial agreements with the main suppliers, showing that they have secured the supply of the main components and describe in detail the conditions for implementing the projects. Securing such commitments from the suppliers and giving such details in the implementing process at the bid stage proves difficult in practice.
CRITERIA
The criteria for rating the bids are the following: industrial organisation (40 pts/100), electricity purchase price (40 pts/100) and environment and social impact (20 pts/100). A maximum electricity purchase price is provided and bidders may try to reduce the price by submitting combined bids for the two projects.
TENDER SPECIFICATIONS
The Tender Specifications provide for an original feature, a 24- month period after the award (the ‘risk mitigation period’) (18 months in the first tender) during which the winning bidders shall carry out various studies (meteorological, geotechnical, geological, topological surveys, UXO assessment, etc).
www.windenergynetwork.co.uk
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