Denmark's Ambitious Offshore Wind Expansion Plans
Key Ideas
  • The Danish government is launching a 3 GW offshore wind tender in autumn 2025, aiming to double the country's offshore wind capacity and support green energy production.
  • The new offshore wind farms are expected to create local jobs and business opportunities in both Eastern and Western Denmark, benefiting the electricity price nationwide.
  • Denmark is investing DKK 27.6 billion in state support for the offshore wind projects, with a focus on energy security and reducing dependency on Russian energy sources.
  • The projects are crucial for Denmark's goal of becoming a net exporter of green electricity and supporting the production of hydrogen for a hydrogen pipeline from Esbjerg to the German border.
The Danish government is set to launch a 3 GW offshore wind tender in autumn 2025, following the suspension of a previous auction round. The tender will cover areas in the Danish North Sea and Denmark-Sweden border. With bid deadlines set for the coming years, the first two offshore wind farms are expected to be operational by 2032. The government aims to create local jobs and business opportunities across Denmark and ensure electricity price benefits nationwide. To support the projects, the Danish government has committed substantial state support and insurance coverage through a two-sided capability-based Contract for Difference (CfD) model. This investment, totaling DKK 27.6 billion, emphasizes the country's focus on green energy and reducing reliance on energy imports, particularly from Russia. Apart from enhancing energy security, the offshore wind projects play a crucial role in Denmark's ambition to become a net exporter of green electricity. Additionally, the projects support the production of hydrogen, essential for the planned hydrogen pipeline from Esbjerg to the German border. The government's move is part of a broader strategy to double Denmark's offshore wind capacity, with a vision to contribute significantly to the green energy transition.
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