The European Commission has approved a Danish support scheme of DKK 37.6 billion for the development of offshore wind. The scheme is intended to contribute to increasing the production of renewable energy and supporting the EU's climate goals towards 2030. The European Commission has announced this in a press release.
The scheme has been approved under the EU's Clean Industrial Deal State Aid Framework (CISAF), which was adopted on 25 June 2025.
The approval will allow support to be given to the offshore wind farms Hesselø and Nordsøen I – Midt, which together are expected to produce around 25 per cent of Denmark's electricity last year. Hesselø is expected to have a capacity of at least 0.8 GW and produce approximately 3.2 TWh annually, while Nordsøen I – Midt is expected to have a capacity of at least 1 GW and produce around 4.6 TWh.
The scheme runs for 20 years and is designed as a two-way contract for difference (CfD). This means that producers receive support if the market price is lower than their bid price, and vice versa, they pay back if the market price exceeds the bid price.
The EU Commission assesses that the model ensures that the market functions without producers being overcompensated. Furthermore, the Commission assesses that the scheme is necessary and proportionate and complies with EU state aid rules.
- With this €5 billion scheme, Denmark will be able to expand offshore wind capacity faster in line with the Clean Industrial Deal. It will also help Denmark and the EU reduce dependence on fossil fuel imports and increase the share of renewable energy, while minimising potential distortions of competition, says Teresa Ribera, Executive Vice-President of the European Commission.
amp
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
