Denmark has paused all current offshore wind tenders as the existing no-subsidy model proves ineffective amid market conditions, announced Lars Aagaard, Minister for Climate, Energy and Utilities. The government is also preparing to retender up to 3 GW of offshore wind this year.
This decision comes after a failed tender for 3 GW of offshore wind capacity last year. In December, the Danish Energy Agency reported no bids for the three planned offshore wind farms in the North Sea.
The tender for the Hesselø, Kattegat II, and Kriegers Flak II projects has been canceled. In April 2024, Denmark launched its largest-ever offshore wind tender, offering at least 6 GW of new capacity across six sites, with potential for overplanting up to or beyond 10 GW.
The government plans to prepare this year for a new offshore wind tender of 2-3 GW, possibly including state subsidies, Aagaard stated.
“The Danish Government intends to establish conditions enabling a rapid scale-up of Danish offshore wind to support green electricity consumption and contribute to a greener, secure Europe,” Aagaard said.
“Final details require further discussion with the industry and political parties. I hope Parliament agrees on the need for potential state subsidies to ensure a green Danish energy supply.”
According to a press release, the new tender, slated for completion in spring 2026, will offer more favorable terms, including possible state subsidies and greater flexibility for bidders.
Henrik Andersen, president and CEO of Vestas, a Danish offshore wind turbine manufacturer, remarked, “We need more offshore wind in Denmark. It’s promising that the government is working on a rapid re-tender of projects with installation by 2030, or earlier.”
“Today’s announcement provides the market and value chain, with thousands of employees in Denmark, clearer insights into the first new 2-3 GW offshore wind projects. However, we must ensure long-term clarity with annual tenders of at least 1 GW to sustain stable green power expansion on land and at sea.”
The government also notified parties involved in the political agreement that the legal framework for the next stage of the Bornholm Energy Island is incomplete. Negotiations will resume following the formation of a new German government.
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