Denmark's Offshore Wind Tender Faces Major Setback

Denmark’s ambitious offshore wind energy goals have hit a significant roadblock, as the first phase of its 6GW North Sea tender failed to attract any bids.

The deadline for bids on the initial 3GW of the 6GW offshore wind tender passed on Thursday, with the Danish Energy Agency reporting no interest in the three North Sea wind farm projects offered.

Danish Minister for Climate, Energy, and Utilities Lars Aagard has called on the Danish Energy Agency to consult with industry stakeholders to understand why no bids were submitted, despite several companies showing interest during earlier market discussions.

“This is a very disappointing result. The circumstances for offshore wind in Europe have changed significantly in a relatively short time, including large price and interest rate increases,” Aagard commented.

In addition to the three North Sea projects, the tender process includes three more offshore wind farms in Danish waters—Hesselø, Kattegat, and Kriegers Flak II. The deadline for these projects is set for April 1, 2025.

The six sites were initially expected to generate at least 6GW of capacity, with potential expansion to over 10GW by allowing developers to install additional turbines. Currently, Denmark’s offshore wind farms have a combined capacity of 2.7GW.

This tender, Denmark’s largest to date, has faced challenges due to its structure, which offered no subsidies. Developers were expected to compete by proposing a fixed concession payment over 30 years for the right to utilize the sites, alongside granting the state a 20% minority ownership in each project.