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Case

Green financing

Climate partnerships

Wind energy

Helping to de-risk offshore wind in USA

4. December 2023

Solution provider

Ministry of Foreign Affairs of Denmark

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Challenge

Denmark has deployed offshore wind for the past 30 years and contributes to accelerating the green transition in USA by sharing regulatory and policy experience.

Solution

Denmark has created its regulatory framework around a tender design that aims to reduce risk and uncertainty for the offshore wind developers competing for projects, thus reducing the project and financial risks. Before the government opens a tender for a new offshore wind farm, the TSO, Energinet, conducts preliminary site investigations. This process provides the developers more information, thus reducing uncertainty and risk when they plan their bid. Energinet finances the investigations temporarily and then passes the cost on to the winning developer as outlined in the tender. Another example is the One-stop-shop concept, where the Danish Energy Agency is appointed to facilitate permitting across all government and regional agencies. This reduces the risk of delays caused by developers not knowing whom to contact at what step, or government agencies not working on the same timeline.

Result

Denmark shares these experiences with its five government partners in California, New Jersey, New York, North Carolina, and Virginia, and federal partners Bureau of Ocean Energy Management and Department of Energy, to inform policymaking. In this way, Danish experiences contribute to shape transparent and risk-reducing framework conditions for offshore wind in USA.

Financing the green transition

This is a part of the white paper “Financing the Green Transition”. Discover Denmark’s plans to mobilise investments to accelerate the transition to a carbon-neutral and climate-resilient economy.

Explore the white paper