Vattenfall COVID-19
Image credit: Vattenfall

Swedish energy giant Vattenfall has retraced its bid in the tender for the 700MW Hollandse Kust North offshore wind zone in the Netherlands, over uncertainties surrounding the COVID-19 epidemic.

The company, arguably one of the front-runners for the tender, set to open on 02 April, put the retraction down to potential supply chain issues resulting from the coronavirus epidemic, as well as lower power prices.

Related Stories:
Coronavirus to infect China’s wind market – report
IEA: COVID-19 crisis highlights the need for energy security
US: Five ways COVID-19 could derail renewables

A company representative told news site reNEWS that the decision as a difficult one not taken lightly, but the company will focus efforts on existing projects in development. “We have decided to pull out due to COVID-19.”

“We think there is a lot of uncertainty right now and feel it better to focus on our core activities, the assets we have got and to deliver the projects that we have in the pipeline.”

The possibility of delaying the zero-subsidy tender is up to the government, he noted, but recommended that the round should be pushed back by at least six months.

The company, the spokesperson added, remains committed to building the 1.5GW Hollandse Kust Zuid project, after winning rights in previous rounds.

Utilities in the power and energy sector have had to rapidly implement coping mechanisms and strategies to protect staff, customers and their bottom line.

Join our series of live virtual discussions where we bring you the best insights from key utilities around the world who are dealing with the challenge of COVID-19 in an age of social distancing and isolation.