Bidders Return to Denmark After CfD Switch

Denmark has received bids for both the Nordsøen Midt and Hesselø offshore wind areas, the Danish Energy Agency (DEA) confirmed after the deadline for bids for the first two of the three areas that the government is auctioning expired on 20 May.

The DEA launched tenders based on a Contract for Difference (CfD) model with a fixed strike price in November 2025 for three offshore wind areas: Nordsøen Midt (North Sea Central), Hesselø, and Nordsøen Syd (North Sea South). The deadline for bids for the third area, Nordsøen Syd, is set to close in the autumn of 2028.

The first two sites being offered have net subsidy caps, with Nordsøen Midt capped at DKK 15.7 billion (around EUR 2.1 billion) and Hesselø at DKK 21.9 billion (around EUR 2.9 billion).

According to the Danish Energy Agency, the two offshore wind farms are expected to deliver a combined capacity of at least 1.8 GW. The third offshore wind area, which will be awarded later, will add a minimum of 1 GW.

The agency has now started evaluating the bids for Nordsøen Midt and Hesselø, with the final results expected by January 2027.

Industry association Green Power Denmark described the outcome as a “much-needed success” after several years of stalled offshore wind tenders.

According to the organisation, the two offshore wind farms would increase Denmark’s installed offshore wind capacity by around 70 per cent compared to current levels, excluding the 1 GW Thor offshore wind farm, which is under construction.

Denmark relaunched the offshore wind tender in 2025 after the country’s previous 3 GW procurement round failed to attract any bids in late 2024. The revised framework introduced state aid and more flexible conditions aimed at improving project bankability.

The winning bidders will be selected based on the lowest guaranteed electricity price offered, subject to screening requirements related to foreign ownership and state aid, according to Green Power Denmark.

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