Posted on December 9, 2024
The Danish Energy Agency has announced the closure of the first round of its North Sea offshore wind tender – including three offshore wind parks with a combined capacity of 3 GW, namely North Sea I A1, A2 and A3 – since it failed to receive any bids. The offshore wind tendering procedure offered six offshore wind projects with a total capacity of 6 GW, including three in Denmark’s North Sea I sub-area that were put out to tender with a deadline for submitting bids on 5 December 2024 and three located in Danish coastal waters, namely Hesselø, Kattegat and Kriegers Flak II (3 GW), with a bidding deadline on 1 April 2025.
The tender offered the possibility of overplanting by installing as much as 10 GW in the area; however, the projects were offered without subsidies and with an annual concession payment for the right to use the marine area over a 30-year period combined with 20% state co-ownership, making the Danish state a minority owner in each project. The DEA plans to engage in dialogue with the market to identify reasons for the lack of bids, given the interest in the tendering procedure expressed during the initial market dialogue.
The Danish government targets to reach 12.9 GW of offshore wind by 2030. At the end of 2023, the country had a total installed capacity of 17.6 GW, of which 2.6 GW came from offshore wind (2.7 GW currently, according to preliminary estimates). price”, sets a price cap and offers a variable premium over the market price (maximum premium – spot price); it is capped at 58 øre/kWh for onshore wind parks.
