The risk will be reduced for the future installer of the Hesselø Offshore Wind Farm. The government and the parties behind the climate agreement have thus agreed on a support scheme where the installer will be offered a so-called Contract for Difference (CfD).
In a CfD scheme, the support is provided as insurance against fluctuations in electricity market prices, which is done to reduce the risk of the installer's financing. The support is calculated as the difference between the offered price and the average electricity price the year before the year in which electricity is produced.
- The support model ensures a good framework for continuing towards the political goal of net-zero support, while the state continues to support the future park owner, according to a press release from the Danish Energy Agency about the scheme.
In years where the previous year's average electricity price is lower than the offered price, the state pays support to the installer. The price that the installers must pay to receive the support during periods of low electricity prices, however, is that the installer must pay to the state in those years when the previous year's average electricity price is higher than the offered price.
The support scheme is similar to the one that has been offered to potential project developers for the upcoming Thor offshore wind farm and similar schemes are also known from British offshore wind farms.
There will, however, be a ceiling on the payments for both the state and the winning bidder if electricity prices develop differently than expected.
However, in relation to the CfD scheme around the Thor offshore wind farm, the state is reducing its own risk. The amount of the payment ceiling for state support payments to the winning bidder has thus been lowered from 6.5 billion. DKK to 5.0 billion. DKK, while the amount of the payment ceiling for payments from the winning bidder to the state has been set at 2.8 billion. DKK, the same as in the Thor scheme.
There is a deadline for submitting offers for the construction of the wind farm in 2022. With the climate agreement in 2020, it was decided to advance the Hesselø Havindmøllepark, so that it will be ready by the end of 2027. The Havindmøllepark will have an effect of between 800 and 1,200 MW.
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