The European Commission has approved a EUR5bn Danish State aid scheme to support the Hesselø and North Sea I Mid offshore wind parks, enabling up to 1.8 GW of new wind capacity under a capability-based two-way contract-for-difference (CfD) model (European Commission press release, 23/03/2026).
Approved under the Clean Industrial Deal State Aid Framework (CISAF) in June 2025, the scheme will run for 20 years and support both the construction and operation of the two projects, which together will generate around 7.8 TWh/year of electricity, equivalent to roughly 25% of Denmark’s 2025 power generation. Hesselø is expected to have a capacity of at least 800 MW, producing around 3.2 TWh per year, while North Sea I Mid will deliver a minimum of 1 GW and approximately 4.6 TWh annually.
The DKK37.6bn support will take the form of a monthly variable premium under a two-way CfD, awarded through competitive tendering. Payments will be based on the park’s capability and made when market prices fall below the bid price. When market prices exceed the bid price, operators will pay the difference back to the Danish authorities.
The Commission stated that the scheme meets CISAF requirements, noting that the capability-based CfD design prevents overcompensation and ensures producers are not paid during periods of negative market value.
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