Denmark launches $14 billion offshore wind tender for at least 6 GW

Denmark has launched the biggest offshore wind tender in its history, seeking at least 6 GW and potentially up to 10 GW, the energy ministry said April 22.

The tender involves six offshore wind concessions at Nordsoen I (three sites with 1 GW each), Kattegat, Kriegers Flak II and Hesselo, with the Danish Energy Agency describing the process as "a massive investment in the green transition."

"We can now give the market the green light to bid and take part in Denmark's next big wind adventure," said energy minister Lars Aagaard.

The Danish authorities estimate average capital invest for a 1 GW offshore wind farm at around DKK 16 billion (Eur2.1 billion; $2.3 billion), the statement said.

This would result in around $14 billion investment across the six concessions assuming only the minimum 6 GW awarded.

The Danish state will have co-ownership of 20% of the six projects that will be developed without direct subsidies.

The sites are offered with an annual concession payment as a payment model.

This means that bidders offer a fixed annual concession payment to the state over 30 years for the right to use the marine space, the ministry said.

The concession payment is combined with the state co-ownership, which means that the state becomes a minority owner in each of the tendered offshore wind projects.

The concessions allow for up to 10 GW of installed capacity allowing for so-called overplanting with surplus electricity expected to be used for hydrogen or other power-to-x products, the agency said.

The six projects are expected to be online by 2030, the ministry said.

Details for the six tenders will be published via the EU Official Journal TED within the next 48 hours, the agency said.

Entry requirements ensure increased sustainability and social responsibility in the projects, it added.

Denmark currently has 2.7 GW offshore wind power, with the 1-GW Thor facility under construction and scheduled for completion in 2027.

Europe is to tender over 40 GW of offshore wind this year. In March, Norway awarded the 1.5-GW Sorlige Nordsjo II.

Power for 2030 delivery in Denmark's DK1 bidding zone -- linked to Great Britain, Germany, the Netherlands and Norway -- settled April 18 at Eur67.09/MWh, EEX data show.

Capture prices for German offshore wind – a close proxy for Denmark's DK1 – averaged Eur86.28/MWh in 2023, but fell below Eur60/MWh in March, according to Platts Renewable Energy Price Explorer.