Offshore wind tender creates huge opportunities for Denmark, if successful

The Danish Energy Agency has today issued a tender for six offshore wind farms. Three are to be located in the North Sea, two in the Kattegat, and one in the Baltic Sea near the existing Kriegers Flak wind farm. In total, 6 GW of offshore wind turbines will be offered, which will supply electricity to the grid. However, wind farm developers have the opportunity to install even more turbines (so-called overplanting), where the energy can be used, for example, to produce hydrogen and other green fuels.

"It's big, it's ambitious, and we must succeed. If the offered sea areas end up being fully developed, they will produce more green electricity than is needed to cover Denmark's current electricity consumption. The production and construction of the wind farms will create plenty of jobs in the industry and for subcontractors. And all the ambitions we have of becoming a major producer of green fuels depend on these tenders," says Kristian Jensen, CEO of Green Power Denmark.

Green Power Denmark has actively participated in the market dialogue that the Danish Energy Agency has conducted with the industry in recent months. The purpose of the market dialogue has been to synchronize political desires for the tenders with market perspectives and expectations to ensure a smooth process where as many as possible are interested in bidding.

Green Power Denmark has pointed out significant areas that will pose a risk for the companies constructing the wind farms. This includes the state's 20 percent ownership of the wind farms and the interaction with the upcoming hydrogen pipeline.

The final tender criteria will be published in a few days on the EU’s procurement portal.

"The tender is gigantic—also by international standards. Combined, the wind turbines will cover a sea area larger than the Danish island of Lolland. But there is a strong indication that it will also be an extremely complicated tender, containing significant risks." says Kristian Jensen.

The winners of the tenders will be the developers who will pay the most to the state to build the parks.

The tender for the Thor wind farm in the North Sea off the coast of Denmark ended three years ago with an income of 2.8 billion Danish kroner to the state. Since then, the costs associated with offshore wind farms have risen significantly with major price increases on materials, transport, and particularly capital due to higher interest rates.

Green Power Denmark therefore warns against believing that the upcoming tender will end with huge revenues for the state.

"This tender is about much more than creating revenue for the state. There are many savings to be had for the Danish society by becoming independent of imported oil and gas. Thousands of green jobs await, and it will create enormous value for all of us once we get started with hydrogen and other green fuels," says Kristian Jensen.