Denmark has suspended all ongoing offshore wind tenders as the current no-subsidy model is not working under current market conditions, said Lars Aagaard, Minister for Climate, Energy and Utilities on Friday. Additionally, the government has initiated preparatory work to retender up to 3 GW of offshore wind this year.
This follows an unsuccessful tender for 3 GW of offshore wind capacity at the end of last year. In December, the Danish Energy Agency (DEA) announced that there were no bids for any of the three offshore wind farms in the North Sea.
Now, the ongoing tender for the Hesselø, Kattegat II, and Kriegers Flak II projects has also been cancelled. In April 2024, Denmark opened the country’s largest-ever offshore wind tender, offering a minimum of 6 GW of new capacity across six wind farm sites, with the overplanting option allowing for 10 GW or more of new capacity to be added.
The government will begin preparations this year for a new offshore wind tender of 2-3 GW, which may include state subsidies, according to the minister.
“ The Danish Government will go all in to establish the conditions that can enable a rapid scale-up of Danish offshore wind. We must be able to power a green electricity consumption as well as contribute to a more green and secure Europe ,” said Aagaard .
“It is not an easy maneuver, and the final details await further discussions with the industry and parties behind the former political agreements. I hope that the parties of the Parliament will agree on the reasoning behind the possibility of bringing state subsidies back, so we can ensure a green Danish energy supply.”
According to the press release, the new tender, which is planned to be completed in the spring of 2026, will present more attractive terms, including the option of state subsidies and more flexibility for the bidders.
Henrik Andersen , president and CEO of the Danish offshore wind turbine maker Vestas, said, “Of course, we need more offshore wind in Denmark. It is therefore good that the government is now working on a rapid re-tender of the first projects with installation initiated by 2030 at the latest, and preferably earlier.”
“With today’s announcement, the market and not least the value chain with thousands of employees in Denmark will have more clarity about the first new projects of 2-3 GW offshore wind. But we must move away from taking one tender at a time. The wind turbine industry needs clarity in the long term with annual offshore wind tenders of at least 1 GW. In other words, tracks must also be laid for a continued stable expansion of green power both on land and at sea.”
The government has also informed the parties behind the political agreement that the legal framework to execute the next stage of the Bornholm Energy Island is not in place. Restarting negotiations will depend on the formation of a new German government, according to the press release.