The results from the Danish Energy Agency's market dialogue show that potential bidders refrained from participating in the tender for 3 GW offshore wind in the North Sea due to a combination of rising costs and uncertain market conditions. The Danish Energy Agency writes this in a press release.
According to the 17 stakeholders who participated in the dialogue, it has not been possible to create a profitable business model due to significantly higher start-up and operating costs, higher financing costs and the prospect of low electricity prices. Uncertainty about the development of the hydrogen market and the lack of large industrial electricity consumers in Denmark have further worsened the situation.
- It is crucial for the development of offshore wind in Denmark that there are solutions that can reduce the risk for investors and ensure stable sales of electricity, says Kristoffer Böttzauw, CEO of the Danish Energy Agency.
Several stakeholders are demanding a scheme with guaranteed minimum prices for electricity to protect investors against fluctuations in the electricity market. In addition, they want greater flexibility in the tenders, including longer time to prepare bids and more spread out tenders over time.
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