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Danish offshore wind interest returns as subsidy-backed bids emerge

Denmark has received bids for both the Nordsøen Midt and Hesselø offshore wind areas, indicating increased interest in Danish offshore wind following the decision to revert to the CfD model.

The DEA launched tenders in November 2025 for three North Sea zones – Nordsøen Midt, Hesselø, and Nordsøen Syd – under a two‑sided contract for difference (CfD) model with a fixed strike price.

Nordsøen Midt and Hesselø each have net subsidy caps of DKK 15.7bn ($2.44bn) and DKK 21.9bn ($3.4bn), respectively, while the third area, Nordsøen Syd, will close to bids in autumn 2028.

The two areas being evaluated could deliver a combined minimum capacity of 1.8GW, with the third area expected to add at least 1GW. The DEA has now begun evaluating bids, with results due by January 2027. Winning bidders will be selected on the lowest guaranteed electricity price, subject to foreign‑ownership and state‑aid screening conditions.

This is a big improvement over the zero bids received in the previous round in December 2024. At the time, Denmark offered no subsidies to developers competing for the right to build wind farms on the sites.

CEO of industry association Green Power Denmark, Kristian Jensen, called the bids “excellent news for the wind industry and for Denmark”. He said the Nordsøen Midt and Hesselø projects could increase Denmark’s installed offshore wind capacity by around 70% compared with current levels, excluding the under‑construction 1GW Thor wind farm. The new farms are expected to begin feeding the grid in the early 2030s.

“The high cost of oil and natural gas reminds us how vulnerable we are as long as we are dependent on imported fossil energy. A society where cars, district heating plants and businesses run on green electricity is stronger, greener, and safer,” Jensen said.

The two‑sided CfD scheme, backed by up to €5bn ($5.8bn) in state aid approved by the European Commission, guarantees developers a floor price and recycles excess profits back to the state when market prices rise above the cap.

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