Denmark’s Offshore Wind Tender Faces Challenges as Industry Stalls

Denmark’s latest offshore wind farm tender in the North Sea ended without any bids, signalling a troubling moment for the global offshore wind industry, according to a report by Reuters.

The Danish Energy Agency plans to engage with industry stakeholders to better understand the lack of interest in what was the country’s largest offshore wind offering to date. Launched in April 2024, the tender proposed six sites with a total capacity of up to 10 GW—three in the North Sea and three in the Baltic and Kattegat, a marine area between Norway, Denmark, and Sweden. However, no subsidies were offered, and the bid deadline for the North Sea sites passed on December 5, 2024, without any proposals. The Baltic and Kattegat sites remain open until April 1, 2025.Danish Energy and Climate Minister Lars Aagard expressed disappointment over the outcome, stating, “The conditions for offshore wind in Europe have changed dramatically in a short time, including significant increases in prices and interest rates.”

Denmark, known for its leadership in wind energy, faces mounting hurdles despite its favorable wind conditions. Prominent Danish wind energy company Ørsted cited an “unfavorable risk-reward balance” as its reason for not participating in the tender. Ørsted’s chief commercial officer, Rasmus Errboe, highlighted the challenges of inflation, rising interest rates, and supply chain issues, emphasizing the need for greater collaboration between policymakers and the industry to secure a sustainable future for offshore wind.

This setback is part of a broader trend of challenges in the offshore wind sector. Earlier in December 2024, a consortium of Shell and Norwegian energy companies Lyse and Eviny withdrew from Norway’s upcoming floating wind tender for the 1.5 GW Utsira Nord project. Other players, including Mainstream Renewable Power and Ocean Winds, had previously exited a partnership with state-owned utility Statkraft for the same tender.

The lack of interest in Denmark’s offshore wind tender underlines the significant economic and policy hurdles that must be addressed to meet global renewable energy goals.