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Denmark Launches Largest Wind Tender Expecting to Become Green Exporter

Denmark offshore wind power
Denmark commissioned the world's first offshore wind farm 33 years ago (file photo)

Published Apr 22, 2024 6:42 PM by The Maritime Executive

 

After a year of preparation, Denmark today officially opened its largest ever offshore wind tender which when completed would ensure Denmark achieves its green goals and sets up the country to become an exporter of green power. With a minimum call for 6 GW, the tender would treble Denmark’s power generation from offshore wind and provide developers the option of further optimizing the sites to possibly realize 10 GW or more.

“Denmark is one large step closer to becoming Europe’s green powerhouse,” said Minister for Climate, Energy, and Utilities, Lars Aagaard. “When the wind turbines are operating, we can cover all of Denmark’s power consumption with green electricity – and we can produce hydrogen and green fuels for ships and planes…Now it is up to the market to take part in Denmark’s next big wind adventure.”

The Danish Energy Agency published the tender frameworks following the political agreement on the tender framework from the spring of 2023. They are designating six locations (North Sea I, Kattegat, Kriegers Flak II, and Hesselø) and took the unusual step of saying developers can optimize their projects within each lease. They are calling for a minimum of 6 GW but noted that by providing the opportunity to expand development on five of the sites, the total could reach 10 GW or more.

The minister notes that with tenders of this magnitude, Denmark enters a completely new chapter. Denmark commissioned the world’s first offshore wind farm 33 years ago and today has a current capacity of 2.7 GW, with an additional GW expected by 2027.

“The green power produced will be used not only for Danish consumption,” said Aagaard, “but also for export to our neighboring countries and green hydrogen production.” 

The framework for the tender does not provide state subsidies and instead requires a yearly concession payment. The leases are for 30 years and the Danish state will be co-owners of 20 percent of the offshore wind farms. They estimate that the cost of building each GW of capacity will be around $2.3 billion.

The tender calls for the commissioning of the new wind farms by 2030, which aligns with Denmark’s ambitious goal of cutting emissions by 70 percent from 1990 levels by the end of the decade.