A Major Setback for Denmark’s Green Ambitions

The three tendered sites in the Danish part of the North Sea are among the best globally for offshore wind development. These areas benefit from constant winds and shallow waters, making turbine installation relatively straightforward. Despite these advantages, no bids were submitted.

- One major factor is the rising cost of wind turbines due to inflation, higher raw material prices, and significantly increased interest rates compared to just a few years ago. These conditions strain the financial viability of such projects, explains Kristian Jensen, CEO of Green Power Denmark.

However, market conditions alone do not account for the lack of bids. Countries like the UK, Poland, and the Netherlands have seen successful tenders for offshore wind farms. In these cases, governments often fund grid connections and provide subsidies, creating more favorable conditions for investors.

- In Denmark, investors face uncertainty about whether they can sell wind-generated electricity at a reasonable price. Progress in transitioning our heating systems and industrial processes to electricity has been too slow. Furthermore, there is still considerable uncertainty about the feasibility of selling electricity in the form of hydrogen, says Kristian Jensen.

The absence of bids for offshore wind farms in the North Sea poses a critical challenge to Denmark’s wind energy sector. It is a significant setback for the country’s green ambitions, prolonging dependence on fossil fuel imports and undermining efforts to deliver competitively priced electricity to businesses and consumers.

- The green transition will move forward, with or without Denmark. I had hoped this tender would mark a giant leap toward a society with renewable energy covering 100% of the electricity consumption. Now, we no longer have certainty of achieving this goal by 2030. Unfortunately, this means we’ll need to rely on imported energy longer than anticipated, says Kristian Jensen.

The North Sea tenders represent the first phase of a broader initiative to develop at least 6 GW of additional offshore wind energy. The remaining 3 GW has been tendered in Danish inner waters, with bids due by April 1. Green Power Denmark urges the government and Parliament to take swift action both before and after the results of the tenders in the inner waters are known.

- Denmark’s green transition has stalled. Too few wind turbines are being installed both onshore and offshore. Without urgent action, we will remain reliant on fossil fuel-based electricity. Politicians need to recognize that wind turbines are not cash cows—they are tools for securing energy independence from fossil fuels and hostile powers, says Kristian Jensen.