The Government of Denmark and Danish political parties have entered into an agreement that establishes the framework for Denmark's largest offshore wind development to date, with planned tenders which could potentially bring up to 9 GW of new offshore wind capacity, which could potentially grow to 14 GW or more.
The Danish State will take a 20% stake in four of the tendered offshore wind farms, which will have a total capacity of at least 6 GW and will be subsidy-free. Under the terms in the upcoming tenders, developers will compete to offer the state the highest fixed annual payment for a period of 30 years. On top of this 6 GW tendered capacity, which was decided in Denmark’s Energy Agreement of 2018 and in its Finance Act of 2022, is added the 3 GW set by the 2020 agreement on Energiø Bornholm (3 GW Bornholm Island Energy Project), for a total of 9 GW tendered. The tenders are expected to take place during the course of 2023. The 9 GW wind projects could provide power to 14 million Danish and European households and support Power-to-X (PtX) and green hydrogen projects.
At the end of 2021, offshore wind represented 14% of Denmark’s installed capacity with 2.3 GW (4.7 GW for onshore wind). In June 2022, Denmark increased its offshore wind target for 2030 from 8.9 GW to 12.9 GW.
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