Denmark’s latest offshore wind farm tender in the North Sea has received no bids – a setback for the global offshore wind industry, as reported by Reuters.
The Danish Energy Agency plans to engage with market participants to understand the reasons behind the lack of interest in this tender.
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The tender, launched in April 2024, was Denmark’s largest to date, offering six sites with a combined capacity of up to 10GW – three in the North Sea and three in the Baltic and Kattegat (a sea area between Norway, Denmark and Sweden).
No subsidies were provided for the companies competing. The deadline for the three North Sea sites was 5 December 2024 and the deadline for the sites in the Baltic Sea and Kattegat is 1 April 2025.
The country’s Energy and Climate Minister Lars Aagard stated: “This is a very disappointing result. The circumstances for offshore wind in Europe have changed significantly in a relatively short time, including large price and interest rate increases.”
Denmark, known for its pioneering role in both onshore and offshore wind, continues to face challenges despite its favourable wind speeds.
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By GlobalDataDanish offshore wind developer Ørsted cited an “unfavourable risk-reward balance” as its reason for not bidding.
The company opted not to bid, acknowledging industry challenges such as higher inflation, rising interest rates and supply chain bottlenecks.
Ørsted chief commercial officer Rasmus Errboe stated: “To mitigate the impact of this and support the ongoing expansion of offshore wind energy, industry and policymakers should work together to create the necessary conditions for a sustainable future for offshore wind.”
The recent tender outcome underscores the difficulties in achieving ambitious targets set by governments in the US, Europe and beyond.
In early December 2024, a consortium of Shell and Norwegian power companies Lyse and Eviny dropped out of Norway’s upcoming floating wind tender for the 1.5GW Utsira Nord, which had already been deferred.
Mainstream Renewable Power and Ocean Winds had already quit a consortium with state-owned utility Statkraft for this tender.
