A strengthened tender in response to market conditions
The Danish Energy Agency’s newly published offshore wind tender marks an important step in Denmark’s continued journey towards a fossil-free future. The three designated sites – “North Sea I”, “Hesselø” in the Kattegat, and “North Sea II” – are expected to be completed between 2032 and 2034.
The tender has been shaped by extensive market dialogue and includes a number of adjustments designed to improve investor confidence. Most notably, it introduces a two-sided, capability-based Contract for Difference (CfD) model. This means developers are guaranteed a fixed electricity price, helping to de-risk projects in times of fluctuating power prices.
In total, a support cap of DKK 55.2 billion (incl. VAT) has been set. The aim is to ensure competitive bids and greater certainty in a market currently experiencing inflationary pressures, increased financing costs, and global supply chain challenges.