In a recent move, Denmark has formally gone ahead and launched tenders for three new offshore wind farms, thereby targeting a combined minimum capacity worth 2.8 GW.
The new offshore wind farms tender launch by Denmark goes on to mark a renewed attempt so as to award the capacity post a previous 3-GW tender that failed, with a fresh framework providing much greater agility in order to improve chances of attracting the qualified bids.
The designated sites go on to include the two in the North Sea, especially the North Sea Mid as well as North Sea South of 1 GW each, and one near the island of Hesselo, which is located in the inner Danish waters of the Kattegat, thereby targeting 800 MW. The tender framework enables the developers to go ahead and build more than the minimum capacity.
The projects within the ambit of new offshore wind farms tender launch by Denmark are also eligible for state subsidies of almost DKK 55.2 billion, which is equivalent to USD 8.56 billion or EUR 7.39 billion inclusive of VAT, provided by way of a two-sided Contract for Difference – CfD spanning 20 years. This scheme makes sure of a fixed electricity price and also decreases the exposure of developers to lower market prices, which, by the way, is a feature that’s needed by the industry.
Apart from this, the additional changes in order to encourage bidding go on to include a relaxed penalty regime, which is aimed at easing the pressures on the potential supply chain. The state also directly covers some of the expenditures that in the past were borne by the concessionaire. In order to widen the competition, there are no financial eligibility requirements that are going to be applied.
As far as the tender rules are concerned, there are minimum needs so as to promote sustainability along with social responsibility, including the usage when it comes to recyclable turbine blades and also measures in order to ensure responsible supply chains.
Developers must also go on to meet strict benchmarks for resilience against the potential threats, with a robust focus on in-depth supplier risk evaluations.
Notably, the call is indeed open to both local as well as international developers. Bids pertaining to North Sea Mid as well as Hesselo offshore wind farms are going to be due by spring 2026, whereas the submissions for the North Sea South farm are going to be due in autumn 2028.
Interestingly, Denmark at present has 2.7 GW of offshore wind that is in operation; there is an additional 1 GW that is under development at the Thor Offshore Wind Farm. If executed, the three new projects are going to produce enough power in order to meet the energy requirements of almost three million Danish as well as European homes.
