On Tuesday, the Danish Energy Agency opened the tender for three new offshore wind farms – North Sea Midt, Hesselø in Kattegat and North Sea South – with a total capacity of at least 2.8 GW. The farms must be able to supply green electricity to around three million Danish and European homes.
The tenders are being carried out using the two-sided capability-based contract for difference (CfD), which is intended to give producers greater financial security, and they also contain requirements for both sustainability and social responsibility. The clarity provided by the tenders is well received by the trade organization Tekniq, which represents the technical business community.
- This sends an important signal that Denmark continues to have great ambitions for the green transition and wants a strong and stable wind industry. Clarity about frameworks and support is crucial for companies to be able to plan long-term. Only in this way can we avoid a repeat of last year's failure, where no one bid, says Troels Blicher Danielsen, CEO of Tekniq.
He emphasizes that Denmark is in a heightened international competitive situation, where both the USA and China influence the market conditions for offshore wind.
- We are in a heightened international competitive situation, where Trump in the USA has created uncertainty about American offshore wind farms, while China, with massive state support for its wind industry, is capturing larger and larger market shares around the world. Denmark cannot stand idly by while market conditions change rapidly. Therefore, it is right and necessary to have a model that gives offshore wind producers the necessary flexibility to ensure green energy for both families and businesses, says Troels Blicher Danielsen.
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