The Danish government along with the parties Danmarksdemokraterne, Socialistisk Folkeparti, Det Konservative Folkeparti, Enhedslisten, Radikale Venstre and Alternativet has agreed on new procurement procedures of 3 GW offshore wind distributed on three offshore wind farms. The projects will more than double the Danish offshore wind energy production.
With the new agreement the need for clean energy in Denmark can be covered well into the future even as demands increase due to more electric cars, data centers and hydrogen production. It is crucial at a time when Denmark must be able to rely on secure, clean energy independent of other countries.
The political parties have listened to the offshore wind developers and the offshore wind market, which has been characterized by uncertainty and rising costs. The market has requested more flexibility and that the state mitigates the price risk for investors.
Therefore, the political parties stand united in improving the terms of Danish offshore wind and have agreed on providing state support. The bid price and the electricity price trends will decide if state support will be necessary.
“We need more secure clean energy and electricity to make Denmark and Europe independent of Russian energy. We are now taking a huge step in that direction. Globally, there have been bumps on the road in recent years when it comes to developing offshore wind. That is why we have agreed that the state will support the projects if necessary. We have selected locations for the offshore wind parks in both Eastern and Western Denmark so the wind farms will benefit electricity prices across the country and create jobs and business opportunities in both Western and Eastern Denmark. The political parties behind the agreement have chosen to act responsibly in uncertain times, and I want to thank them for that,” says the Minister for Climate, Energy and Utilities Lars Aagaard.
Facts
- A total capacity of 3 GW will be tendered out across three offshore wind farms, located in both Eastern and Western Denmark. Together, the offshore wind farms will be able to supply electricity to three million households.
- The political agreement allocates DKK 27.6 billion in state support, with an insurance framework of up to DKK 55.2 billion through a 2-sided, capability-based Contract for Difference (CfD) model.
- Whether support is needed - or whether the state instead receives revenue - depends on the bid price and the development of electricity prices.
- Private companies are expected to invest DKK 57 billion in building the three offshore wind farms.
- The procurement procedures will include a set of requirements aimed at raising the bar for environmental sustainability and social responsibility.
- The procurement procedures for all three sites will open in autumn 2025. Nordsøen Midt and Hesselø are expected to have tender submission deadlines in spring 2026, while Nordsøen Syd is expected to have a tender submission deadline in autumn 2027.
- The first two offshore wind farms will have a completion deadline in 2032. The third offshore wind farm will have a completion deadline in 2033.
- The remaining pre-surveyed areas from the 6 GW procurement procedures will be brought into play over time - at a pace the market can absorb and in a way that supports Denmark becoming a net exporter of green electricity.
Contact the press offices of the Ministry for Climate, Energy and Utilities on +45 41 72 38 05