A coalition of Danish onshore wind developers — including European Energy and Eurowind — plans to file an official complaint to the European Commission over Denmark’s upcoming 3-GW offshore wind tender, and may take the case to the European Court of Justice, according to people familiar with the matter.
The developers intend to lodge the objection immediately after the Commission approves the tender rules, a decision expected in early December.
A person close to one of the companies said the proposed offshore contracts-for-difference (CfDs) would create an uneven competitive landscape. The individual said the scheme contains notable “design errors,” adding that “the offshore CfD being planned creates an uneven playing field between offshore, onshore and solar developers.”
The group argues that the CfD would grant state aid for electricity production during negative-price periods, a measure they say is inconsistent with the EU’s Clean Industrial Deal State Aid Framework. Correspondence seen by reNEWS cites three alleged design flaws.
“Two of these errors entail that production during negative price hours does, in fact, trigger the granting of additional aid. The last one actively incentivises the aid beneficiaries to produce during negative price hours,” the developers wrote. They said this would encourage operators of the North Sea South, North Sea Mid and Hesselø projects to continue generating power even when wholesale prices fall below zero.
According to the letter, such incentives would “undermine the economic viability of any operator on the energy markets and derail the development of unsubsidised renewable energy production.” A source added that “it will have huge consequences on an energy market which has had no subsidies for the last six years,” saying the group wants a technology-neutral auction that delivers “the lowest price for green electrons.”
The developers have already submitted three informal complaints to the Commission. If the CfD is approved, they are prepared to escalate the case to the European Court of Justice.
An industry analyst said onshore and solar developers face heightened uncertainty. “Onshore and solar developers are already nervous about their pipelines. Now they have 3 GW of subsidised offshore wind coming to the market which there isn’t the demand for,” the analyst said, adding that power purchase agreements would become less viable.
The new offshore tender carries a total support ceiling of €7 billion (DKK 55.2 billion) across three zones — the 800-MW Hesselø project and the 1-GW North Sea South and North Sea Mid sites — with bidding set to open in autumn 2025. The CfD framework was introduced after two subsidy-free 3-GW offshore wind auctions failed in December 2024 and April 2025.
The Danish Ministry of Climate, Energy and Utilities said it remains in discussions with Brussels. “We are in ongoing, constructive dialogue with the European Commission regarding the support scheme. The process for state aid approval is proceeding according to plan,” the ministry said.
