Denmark Launches Largest Offshore Wind Tender Without Subsidies

Denmark launched the largest offshore wind tender, offering zero subsidies to firms competing for the right to set up turbines on six sites with a capacity of up to 10 gigawatts (GW), the Energy and Climate Ministry reported on April 23, 2024.

The wind farms, to be completed by 2030, are critical if Denmark, home to industry leaders Orsted and Vestas, is to fulfil its target to minimize CO2 emissions by about 70% from the levels observed in 1990 by the end of the decade.

Participants must also offer the price they will pay to the state for more than 30 years to secure the right to establish wind farms.

The state would have a 20% stake in the tendered undertakings.

Lars Aagaard, the climate and energy minister, said in a statement that the following chapter has to be written first and then executed by the market.

Six sites will be available, making it possible to construct at least 6 GW possible.

The ministry informed that the winning projects will be permitted to have as many turbines as feasible, indicating that the capacity might be 10 GW or higher; such an amount of wind power would more than cover Denmark’s consumption, suggesting that green power could well be exported to neighbouring nations or used to deliver hydrogen, it added.

According to the ministry, the cost of building 1 GW of offshore wind, which can adequately power about a million European homes, is approximately 16 billion Danish crowns.

Denmark currently has 2.7 GW of offshore wind installed.

Reference: Reuters