Denmark to press ahead with 3-GW offshore wind tenders supported by CfDs

A political agreement reached by the parties in Denmark will see the tender make use of a two-sided Contract for Difference, a development industry has been lobbying for since the failure of what would have been the country’s largest offshore wind tender in late 2024.

Under the terms of the agreement, developers will also have greater flexibility around the timeframe for installation, which is expected to relieve pressure on the supply chain. 

Penalties will remain in place for delays, but have been relaxed to accommodate realistic project timescales, and the costs of the site investigations and site surveys for the projects will be borne by the state.

The agreement between the government and other parties in Denmark will result in a significant increase in Denmark’s offshore wind capacity. The government said this is crucial at a time of growing demand for electricity for electric cars, data centres and producing hydrogen, and is “crucial at a time when Denmark must be able to manage itself with secure green energy independent of other countries.”

In a statement, the government said the parties to the agreement “have chosen to listen to developers and to the market, which has been characterised by uncertainty and rising costs.” The statement said the market “has demanded greater flexibility and for the state to assume the risk of electricity price developments.

“Therefore, the parties to the agreement are united in providing more attractive terms for Danish offshore wind and have agreed to provide state support so the offshore wind turbines can be built.”

A total of 3 GW of capacity is being offered across three offshore windfarms in Eastern and Western Denmark. It is anticipated around 150 turbines, each of 20 MW will be installed across the projects. 

The tenders for all three windfarms will open in autumn 2025. Nordsøen Midt and Hesselø are expected to have a bidding deadline in spring 2026, and Nordsøen Syd in autumn 2027.

The first two windfarms are being offered with an establishment deadline of 2032 and the third with an establishment deadline of 2033.

Minister for Climate, Energy and Utilities Lars Aagaard said, “We need more secure green power and energy to make Denmark and Europe independent of Russia. We are taking a big step towards that now. 

“There have been global ‘bumps in the road’ in getting offshore wind built in recent years and that is why we have also agreed the state will lend a helping hand to the projects, if necessary.”

The government said other areas investigated in connection with the failed 6-GW tender in late 2024 will be put into play at a pace the market can bear, in a way that will support Denmark becoming a net exporter of green electricity.