The prospect of 100 percent green electricity in Danish sockets has been postponed after the first part of the largest tender for offshore wind in Danish history ended with zero bids. This is what CEO of Green Power Denmark Kristian Jensen says.
- It is a huge disappointment. We had hoped for a result that could create more Danish-produced energy and free us from energy from other countries. We had hoped to be able to produce green and competitive electricity. And we must admit that this has been postponed with today's result, he says.
On Thursday at 2:00 p.m., the deadline for bidding on the first three out of a total of six GW of offshore wind expired. The three GW were distributed across three offshore wind farms in the North Sea. The last three GW are distributed across three farms located in Danish internal waters. Here, the deadline expires on April 1, 2025.
The six GW will be offered without support, and the energy companies must pay the state to produce the wind energy. It has also been decided that the state will own 20 percent of the parks.
Surprised by the lack of bids
Green Power Denmark represents the energy companies, and the organization has repeatedly expressed its concern about whether the conditions in the market were in line with the conditions in the Danish tender. Still, Kristian Jensen is surprised that no bids have been received at all.
- I'm not so interested in who is to blame. I'm more interested in what we can do going forward to look at the conditions that we can do something about as soon as possible, he says.
Rising commodity prices and higher interest rates have made it more expensive to build wind farms. And that's putting pressure on the economy of the projects. But high interest rates and raw material prices are difficult to do anything about in a tender. That is why Kristian Jensen points to the hydrogen pipeline that will transport hydrogen from Denmark to Germany.
- The government could do better to ensure that the hydrogen pipeline is put in place, so that there is greater certainty in relation to the sale of the electricity we can produce from the offshore wind farms, he says.
In October, Minister of Climate, Energy and Utilities Lars Aagaard (M) announced that the establishment of the hydrogen pipeline would be postponed from 2028 to 2031.
The six GW of offshore wind is tendered with the possibility of overplanting. This means that an energy company is welcome to build more offshore wind than the minimum capacity.
Therefore, the total tender - if there are companies that bid for the task - could potentially yield ten GW or more, writes the Danish Energy Agency. In addition, there are three GW from Energiø Bornholm, which have not yet been put out to tender.
The largest tender for offshore wind in Denmark to date is the Thor tender of one GW.
/ritzau/
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