Danish authorities have announced tenders for three areas enabling the construction of at least 2.8GW of offshore wind power.
The Danish Energy Agency said that the tenders were based on thorough market dialogues and include, among other things, state subsidies and greater flexibility for developers to increase the likelihood of qualified bids.
The three areas, named North Sea Mid – a minimum of 1GW, Hesselø in the Kattegat – a minimum of 800MW, and North Sea South – a minimum of 1GW, will be able to power around three million homes. Completion for the first two areas is set for the end of 2032, while the completion of North Sea South is set for the end of 2034.
The three offshore wind farms are being offered with a support scheme known as a two-sided capability-based contract for difference. Under this scheme, the state guarantees offshore wind producers a fixed price for their electricity.
This reduces the risk of low electricity prices for developers, an element requested by the market. In total, a payment cap of DKK 55.2bn ($8.5bn) has been set for the state.
The tenders contain requirements relating to sustainability and social responsibility, including those concerning the recyclability of the turbine blades, social dumping, and the winning bidder for Hesselø must establish the offshore wind farm with a nature-inclusive design.
The tenders are a follow-up to the offshore wind tenders from 2024, where six areas were put up for tender. However, no bids were received. The new 2.8GW offshore wind tenders have different rules as certain modifications were made in consultation with the offshore wind market.
The deadline for submission of tenders for North Sea Mid and Hesselø is spring 2026. The deadline for North Sea South is autumn 2028. The tenders will further enable the winning bidders to establish overplanting capacity.
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