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Denmark initiates tender for 6 GW of offshore wind capacity

The Danish Energy Agency has launched a tender for at least 6 GW of offshore wind capacity, to be completed in 2030. The auction is divided in six projects at four areas: North Sea I (at least 3 GW, split in three projects), Kattegat (at least 1 GW), Kriegers Flak II (at least 1 GW) and Hesselø (0.8-1.2 GW). Projects will be built without state subsidies. Instead bidders will compete by offering a yearly concession payment to the Danish government over a three decade period for the right to use the seabed for power generation. The Danish government will hold stake of 20% in each of the awarded offshore wind project. Tenderers will have to possibility to erect more turbines in the proposed areas, with the total capacity surpassing 10 GW or more. In addition, projects can either feed their output into the grid or use it for hydrogen or other Power-to-X products to replace fossil fuels.

The procedure results from an agreement between the Government and the majority of the Danish Parliament in May 2023 to procure 6 GW of offshore wind and a further 3 GW from Bornholm Energy Island. Denmark has currently 2.7 GW of offshore wind capacity (end of 2023), and the Thor offshore wind project currently under construction in the Danish North Sea supply a further 1 GW when it is scheduled for competition in 2027.