Denmark launches biggest offshore wind tender in its history

LONDON

Denmark on Monday launched its biggest ever offshore wind tender offering a combined capacity of up to 10 gigawatts, the energy and climate ministry said.

The new initiative is offering a minimum of 6 GW of new capacity spread over six wind farms with a further 4 GW or more of new capacity that could be added through “overplanting.”

“Finally, we are able to publish the biggest offshore wind tender in Danish history. With hundreds of wind turbines, we are insuring ourselves against (Russian President Vladimir) Putin’s black gas,” Lars Aagaard, Denmark’s climate, energy, and utilities, said in a statement.

According to him, Denmark is now much closer to becoming “Europe’s green powerhouse.”

Wind farms located in the North Sea I, Kattegat, Kriegers Flak II, and Hesselo areas aim to cover all of Denmark’s power consumption with green electricity producing hydrogen and green fuels for ships and planes.

However, green power could be exported to neighboring countries also.

“It is projects of this scale that can make a big, green difference for the climate and our security. Not just for Denmark, but for all of Europe,” said Aagaard.

The wind farms project hopes to meet its target to reduce CO2 emissions by 70% from 1990 levels by the end of this decade.

To win the right to establish the wind farms, developers must participate in the tenders by bidding a yearly concession payment to the Danish state across a 30-year period.

The state would own a 20% stake in each of the tendered offshore projects.

“Now it is up to the market to take part in Denmark’s next big wind adventure. The next chapter will thus be written and carried out by the market – it is the market that must bring these tenders across the finish line,” said Aagaard.

In 2020, Danish lawmakers decided to stop issuing new licenses for oil and gas exploration and to phase out the production of fossil fuels by 2050.

The Nordic country’s energy and climate ambition in sectors such as offshore wind, biomethane and district heating are transforming the country’s energy system and reinforcing its image as a clean energy leader toward net zero emissions by 2050, according to a review by the International Energy Agency (IEA).

In 2022, Denmark had the highest share of wind electricity (54%) in the IEA, which together with bioenergy and solar photovoltaics (PV) account for around 80% of the power mix, according to IEA.

In the same year, almost 40% of Denmark’s gas consumption came from biomethane, the agency added.

The Danish offshore wind initiative follows last year’s political agreement on tender frameworks.