Denmark initiates market dialogue for next offshore wind auction

The dialogue will enable developers to engage directly with the agency and help shape the strategy for the auction, which will take the form of a two-way Contract for Difference.

The new approach and decision to use CfDs comes after no bids were received in response to an auction for offshore wind capacity held in late 2024. 

In the aftermath of the disastrous auction, Denmark’s Minister for Climate, Energy and Utilities Lars Aagaard asked the Danish Energy Agency to ‘engage in dialogue’ with the market to find out why there were no bids.

In a January 2025 statement, the Danish government said it was “ready to look at state support to secure 2-3 GW of offshore wind and state financing.” It also decided to end ongoing tenders for offshore wind while better terms were drawn up.

Draft tender documents for 3 GW of offshore wind are now available on EU-Supply, and stakeholders are being encouraged to provide input to the ongoing market dialogue. Potential bidders and other economic operators are being encouraged to send comments on the tender documents to the Danish Energy Agency via EU-Supply. 

The market dialogue will be a two-stage process. The first concerns a report regarding the proposed method for collecting relevant data and estimating potential production in a capability-based two-way CfD scheme, which will apply in the new procurement procedures. The report is accompanied by a questionnaire for participants in the market dialogue. The report and the questionnaire will be published by the agency in EU-Supply, simultaneously with the initiation of the market dialogue.

The second phase concerns the draft procurement material as a whole. This phase will be initiated by the agency through the ’Messages’ module in EU Supply. The agency said it expects to initiate the second pjease of the market dialogue in July/August. 

The deadline for submitting comments and observations on the tender documents is 6 August 2025. The agency will then complete the final tender documents with a view to publication in the autumn. 

Earlier this year, an agreement was reached between the government and other political parties in Denmark on a framework for new tenders for 3 GW of offshore wind three offshore windfarms. A key part of the agreement was about providing more attractive terms for offshore wind in Denmark. The three areas assigned to the windfarms to be tendered later this year are: North Sea I – Mid; North Sea I – South; and Hesselø.