UPDATED: Denmark ‘working quickly’ to re-launch offshore wind tenders with ‘better terms’ 

The announcement comes after a failed tender for 3 GW of capacity at the end of 2024, the deadline for which expired on 5 December 2024 without any bids being received for any of the three offshore windfarms in the North Sea that were put out to tender.

In a statement, the Danish Government said it “is ready to look at state support to secure 2-3 GW of offshore wind and state financing for the construction of a hydrogen pipeline that will run from Esbjerg to the border and be operational in 2030.” It is ending ongoing tenders for offshore wind whilst better terms are drawn up, and the plan for the Bornholm Energy Island has been postponed.

Denmark Minister for Climate, Energy and Utilities Lars Aagaard said, “When a wind turbine at sea spins, it not only provides us with green energy and a greener future. It also helps to create a safer and stronger Europe.

“Europe is under pressure. There is war on our continent, competitiveness is challenged and the EU is far too dependent on imported energy. We will have to produce more energy ourselves. And it must be green. The government is ready to invest massively in new offshore windfarms and in green hydrogen.”

The Minister said the offshore capacity that will be re-tendered “corresponds to approximately a doubling of the amount of offshore wind Denmark has today.” He said Government must “change gear” and there must be more flexibility for bidders. He said the government is “opening up to provide state aid so that it becomes more attractive to build offshore windfarms. This is the new reality we are facing if we are to ensure more offshore wind.”

Responding, Green Power Denmark said, “The decision to cancel ongoing tenders is a natural consequence of the fact that no one bid for the three areas in the North Sea late last year.

“It is good that the government is canceling these tenders, so that we can move forward and restart the expansion of offshore wind turbines.

“The government will present a model for how we can get more wind turbines in the seas around Denmark later this spring, but new tender will not be completed until 2026. It is a long delay, but it is absolutely crucial that the government gets it right next time.”

Also responding, Vestas chief executive Henrik Andersen said, “Of course, we need more offshore wind in Denmark. It is therefore good that the government is now working on a rapid re-tender, with the first projects to be  installed by 2030 at the latest, and preferably earlier.

“It is right to cancel tenders for offshore wind projects with terms that are not up to date. Denmark needs safe, green energy and Vestas supports a new tender in 2025 with less risk for those who want to set up offshore wind. The Danish wind turbine industry is ready to deliver.

“With today’s announcement, the market and not least the value chain will have more clarity about new projects for 2-3 GW offshore wind.

“But we must move away from taking one tender at a time. The wind turbine industry needs clarity in the long term with annual offshore wind tenders of at least 1 GW. In other words, tracks must also be laid for a continued stable expansion of green power both on land and at sea.”