The Danish Energy Agency (DEA) has announced the publication of tender frameworks totaling 6GW across six offshore wind farm areas, marking the largest offshore wind tender in Danish history.
The green power generated from these projects will not only cater to Danish consumption but also be exported to neighboring countries and utilized for green hydrogen production. The tendered wind farms are situated in strategic areas including North Sea I, Kattegat, Kriegers Flak 2, and Hesselø.
These tenders align with the political agreement on tender frameworks reached in the spring of 2023. The offshore wind farms are mandated to deliver a minimum of 6GW, with the added provision of flexibility to establish even more offshore wind capacity, except for the Hesselø area, which has a maximum capacity limit of 1.2GW.
The DEA anticipates that leveraging this flexibility could result in the construction of 10GW or more of offshore wind capacity. To ensure sustainability and social responsibility, a set of requirements will be implemented in the projects.
Remarkably, the 6GW will be tendered without state subsidies but with a yearly concession payment. Bidders will bid for the right to construct offshore wind farms by offering a yearly concession payment to the Danish state over a 30-year period. Additionally, the Danish state will hold a minority ownership of 20% in each of the tendered offshore wind farms.
Minister for Climate, Energy, and Utilities, Lars Aagaard, emphasized the importance of market participation in realizing these projects. He highlighted that companies will bid on wind farms based on the price they are willing to pay annually to the Danish state and that winners will gain the right to construct offshore wind projects in the designated areas.
Moreover, Aagaard noted the significant investments and job creation potential associated with offshore wind farm construction. A project with a 1GW capacity is estimated to require capital investments of approximately DKK16bn (€2.1bn) and could create around 9,500 jobs, contributing substantially to employment across Denmark, particularly during the construction phase.
