Danish Energy Agency Running Market Dialogue Ahead of 3 GW CfD-Based Offshore Wind Tender

The Danish Energy Agency (DEA) has invited potential bidders in Denmark’s relaunch of the 3 GW offshore wind tender to participate in the market dialogue on procurement procedures.

The draft procurement material for the upcoming tender is largely based on the material of the procurement procedures of the 6 GW tender the Danish government opened last year, which saw no bids placed for the three North Sea I areas by the closing of the application deadline in December 2024.

In January, the Danish government suspended all ongoing offshore wind tenders, saying the current no-subsidy model was not working under current market conditions, and initiated preparatory work to retender up to 3 GW of offshore wind this year.

Last month, the government announced plans to relaunch a 3 GW offshore wind procurement this autumn.

This time, instead of a zero-subsidy tender, Denmark will be providing support through two-sided Contracts for Difference (CfD).

The tender will cover three areas, two in the Danish North Sea, Nordsøen Midt and Nordsøen Syd, and the Hesselø area between Denmark and Sweden. The bid deadline for Nordsøen Midt and Hesselø is scheduled for spring 2026, with Nordsøen Syd expected in autumn 2027.

According to the DEA’s invitation to market dialogue posted on 28 May, thorough new analyses have been made based on dialogues with the market in December 2024 and January 2025 to determine which changes could be made to the procurement procedures to ensure market response to a potential retender.

Following the political agreement about the retender from 19 May 2025, the original procurement procedures have been amended to include changes in several stipulations, including the amount of sites tendered out simultaneously and the timeline, both regarding the procurement process and the construction process of the offshore wind farm, the minimum requirements for eligibility, the payment structure, constituting subsidy through a capability-based CfD, and the sanction regime.

The market dialogue is being carried out in two steps. The first step involved a report on the proposed method for collecting relevant data and estimating potential production in a capability-based two-sided CfD scheme, which will apply in the new procurement procedures for the three offshore wind areas. The report is accompanied by a questionnaire for the participants in the market dialogue.

The DEA is now initiating the second step of the market dialogue, which concerns the draft procurement material as a whole and will be conducted during June/July-August.

The agency has invited participants in the market dialogue to submit their written inputs to the DEA regarding both the first step and the second step of the market dialogue by 6 August 2025, at the latest. As part of the finalisation of the procurement documents for the upcoming procurement procedures, the DEA is currently still assessing the appropriate legal basis for the procurement procedures, the agency said in the market dialogue invitation notice.

ADVERTISE ON OFFSHOREWIND.BIZ

Get in front of your target audience in one move! OffshoreWIND.biz is read by thousands of offshore wind professionals daily.

ADVERTISING OPTIONS

Follow offshoreWIND.biz on: