Denmark tenders 6 GW of offshore wind power

The plan outlines the ‘largest offshore wind tender in Denmark’s history.’ The Danish Energy Agency has published 6 GW in tenders in 6 offshore wind farm areas.

He said this is the largest offshore wind tender in Denmark’s history.

The green energy produced will be used not only for Danish consumption, but also for export to neighboring countries and for the production of green hydrogen.

The wind farms tendered are located in the zones: North Sea I, Kattegat, Kriegers Flak 2 and Hesselø.

The tenders follow the political agreement on tender frameworks from spring 2023.

Offshore wind farms will have to produce at least 6 GW and, as a new element, there will be freedom to install as much offshore wind energy as possible in the tendered areas (with the exemption of Hesselø with a maximum capacity of 1.2 GW).

The DEA said that if the market uses this freedom to optimize the use of areas, it could result in the construction of 10 GW of offshore wind or more.

    A series of requirements will be implemented to guarantee greater sustainability and social responsibility in the projects.
    The 6 GW will be tendered without state subsidies and with an annual concession
    pay. This means that bidders will participate in the tenders by offering a
    annual concession payment to the Danish State over a period of 30 years, for the right
    to use the seabed.
    The concession payment is combined with the Danish State's co-ownership of each of the
    tendered offshore wind farms with a minority stake of 20%.

When the wind turbines are operational, Denmark’s entire energy consumption will be covered by green electricity and could also produce hydrogen and green fuels for ships and planes.

Climate, Energy and Utilities Minister Lars Aagaard said: “We have paid close attention to market input before the tenders.

“Now it is up to the market to tender and execute the projects.

“Companies have to submit their offers for wind farms at the price of what they are willing to pay each year to the Danish state for a period of 30 years.

“Each winner will win the right to build offshore wind in designated areas.

“In addition, the Danish State will be co-owner of 20% of the established offshore wind farms.

“Now it is the market’s turn to participate in Denmark’s next big wind adventure.

“Therefore, the next chapter will be written and executed by the market; It is the market that must take these tenders to the finish line.”

Building an offshore wind farm of this scale generates huge investments and thousands of green jobs.

An offshore wind farm with a capacity of 1 GW is expected to require capital investments of around 16 billion Danish crowns (2.1 billion euros) and, according to calculations by market players as of 2020, approximately 9,500 workers.

Not all of these jobs will be in Denmark, but the 6 GW offshore wind can contribute substantially to employment throughout Denmark, especially in the construction phase.