Before Christmas, the government had to face a major failure, as no one had bid to establish offshore wind farms in the North Sea. Now comes the reaction. A model with state support must now be prepared for new tenders for 2-3 GW of offshore wind.
At the same time, a large tender in progress in inland Danish waters is being cancelled. This lowers the ambitions, which were previously called nine GW of offshore wind in 2030. This was stated by Minister of Climate, Energy and Utilities Lars Aagaard (M) on Friday.
- If wind energy is a Christmas tree, it was a Christmas tree where all parties to the agreement had an expectation that we would be able to pick banknotes. But now we have to hang some notes on the tree, said Lars Aagaard at the presentation of the news on Friday.
The minister does not put a figure on the amount.
- But we are ready to cross the very crucial line (regarding state aid, ed.).
Rejects overoptimism
There has been talk of state aid for a long time, but it is a decisive shift in the government's approach to offshore wind. In recent years, the government has wanted the companies behind the offshore wind farms to pay the state to a greater extent for building and operating the turbines, because wind energy had become a good business. Since then, the market has declined significantly.
The requirement for payment contributed to no companies bidding on the large tender for the establishment of offshore wind at the end of 2024. Asked whether there has been overoptimism when it comes to wind expansion, Lars Aagaard Ritzau replies:
- I do not want to point fingers at previous governments and other parties, and I do not want to point fingers at the industry either. It was a collective expectation that we could expand offshore wind at an enormous pace, without the state having to assume financial risks, he says.
The prospect of state aid is not the only new thing the government is bringing forward. The conditions for a hydrogen pipeline to Germany are to be relaxed, and billions in aid are to be provided so that construction can take place a year earlier than planned. The government expects exports to Germany in 2030, although the last year was postponed to 2031.
In addition, the project with Energiø Bornholm is being put on hold. The necessary framework to "launch the next phase" of construction has not been put in place in time, the ministry says.
DI: Green political hat trick
In a press release, Danish Industry calls Friday's news a "green political hat trick" and welcomes a "boost to the entire green industry".
The interest organization Green Power Denmark praises the plans for the hydrogen pipeline. When it comes to offshore wind supply, however, there are several reservations. Director Kristian Jensen calls it a long delay and says that "it is absolutely crucial that the government gets it right next time".
- With the government's decision, it is now certain that new offshore wind farms will not be ready to produce electricity until after 2030. Therefore, it is crucial that we build more solar cells and wind turbines on land.
There are many projects waiting for reasonable conditions to be set for building more renewable energy on land. The government can do a lot to help the projects on the way, he says.
Energy news poured in on a Friday that also featured a significant change at the top of one of the country's largest energy companies. A company that deals with offshore wind. Ørsted is changing its CEO. Mads Nipper, who has been at the helm of the company since 2021, is finished after a bad period for Ørsted.
As late as the fourth quarter of last year, Ørsted made an impairment loss - yet another in a row - of DKK 12.1 billion on, among other things, offshore wind projects in the USA. The company's share has since fallen significantly. Rasmus Errboe, who has held other top positions at Ørsted until now, will take his place.
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