The Danish Energy Agency (DEA) has initiated tenders for three offshore wind areas, targeting a minimum of 2.8 GW installed capacity. The tenders use a Contracts for Difference (CfD) model, aimed at attracting qualified bids after the previous year’s tender failed to secure bids for the initial three of six sites offered.
The sites include North Sea Central (Nordsøen Midt), Hesselø in the Kattegat, and North Sea South (Nordsøen Syd). Bids for North Sea Central and Hesselø are due by spring 2026, while North Sea South has a deadline in autumn 2028.
The DEA offers a two-sided capability-based CfD for each project after industry consultation.
The CfD model ensures a fixed electricity price for producers, mitigating risks of low prices and enhancing security. The Danish government has set a budget limit of DKK 55.2 billion (EUR 7.4 billion), including VAT.
The tender also imposes sustainability and social responsibility criteria, such as using reusable wind turbine blades and preventing social dumping. The Hesselø site winner must develop a nature-inclusive offshore wind farm.
The North Sea Central site is expected to host a wind farm with at least 1 GW capacity, to be completed by 2032. The Hesselø project will have a capacity of at least 800 MW, also due by 2032, while North Sea South will support at least 1 GW, to be finished by 2034.
The tender permits overplanting capacity.
These tenders follow a 2024 offshore wind procurement where six areas were tendered. After no bids for the first three areas, the DEA conducted market dialogues, leading to two political agreements in 2025. The current 2.8 GW offshore wind tenders are based on these agreements.
Original Story at www.offshorewind.biz