RWE Thor

Danish Energy Agency Re-Rejects Applications for Feasibility Study Permits Under ‘Open-Door’ Scheme

Authorities

The Danish Energy Agency (DEA) has revised the applications for feasibility study permits under the open-door scheme, for which the process was suspended in 2023 and reactivated last year. The DEA has now made new decisions in the cases and maintains the rejection of all 37 applications.

The DEA put the processing of cases under the open-door scheme on hold in February 2023, saying the granting of permits for offshore wind and other renewable energy projects under this scheme may be in breach of EU law.

At the beginning of March 2023, the DEA resumed the processing of the Aflandshage and the Frederikshavn offshore wind farm projects as the Danish Ministry of Climate, Energy and Utilities assessed that the establishment permits issued for Aflandshage and Frederikshavn in the autumn of 2022 were not in violation of EU law. The projects were granted feasibility study permits in 2019 and 2018, respectively.

Later that same month, the DEA resumed the assessment of the Jammerland Bugt, Lillebælt South, Omø South, and Nordre Flint offshore wind farms and, in July 2023, case processing of three offshore wind farms laid out in the then-new Marine Plan and all pending applications for test projects under the open-door scheme.

In May and June 2024, the Energy Complaints Board overturned a number of decisions rejecting applications for feasibility study permits under the scheme and forwarded the cases to the Danish Energy Agency for reconsideration. 

The Danish Energy Agency has now made new decisions in these cases and, on 1 September 2025, issued decisions to 37 applicants, including for three applications for offshore wind projects with elements of testing. The applicants have all had their applications for feasibility study permits for offshore wind projects under the scheme rejected.

“It would be illegal state aid to grant a preliminary exploration permit that gives the applicant exclusive rights to a given sea area if the permit has value for the applicant and there has been no competition for the area. Ultimately, it is about complying with EU state aid rules,” said Stig Uffe Pedersen, Deputy Director General of the Danish Energy Agency.

With a feasibility study permit under the open door scheme, the applicant obtains a royalty-free exclusive right to investigate the possibilities for and subsequently apply to establish an offshore wind farm in the same sea area.

The DEA assessed that free feasibility study permits for new commercial offshore wind projects under the open-door scheme have a value and that the permit would therefore entail a waiver of state funds and constitute illegal state aid in the current offshore wind market.

The assessment is based, among other things, on the bidders’ willingness to pay in connection with the tender for the Thor offshore wind farm in 2021 and the subsequent sharply increasing interest in the open-door scheme, according to the DEA. The Agency said that in addition to this, there had been several postponements of competitive tenders in other countries in Europe in recent years, which have ended with payment from the proponent to the state.

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