The framework for the largest offshore wind tender in Danish history has been laid. Potentially securing green electricity for more than 14 million households, the Danish public will also be part of the ownership circle for the first time. The agreement also contributes to the security of supply, and a better marine environment is ensured with a future marine nature fund.
The government and political parties SF, Liberal Alliance, Conservative People’s Party, Red-Green Alliance, Danish Social Liberal Party, Danish People’s Party and The Alternative have entered into an agreement that establishes the framework for the largest development of offshore wind in Danish history, with 9GW of capacity, which could potentially grow to 14GW or more. The parks can thus contribute large amounts of green energy to Denmark and Europe and to PtX products such as green hydrogen.
Last year, a broad majority in the Danish Parliament concluded a climate agreement for a greener and safer Denmark and in 2020 a deal on Energy Island Bornholm of 2GW, which has later been expanded to 3GW. Together with additional capacity from the Energy Agreement 2018 and the Finance Act 2022, the target of tendering a total of 9GW was determined.
The parties to the agreement will ensure that Danish society will also get a piece of the shared resource through the bidders’ concession payment in combination with the state co-ownership of 20% of the tenders for the 6GW.
“The agreement makes Denmark greener. When the turbines are spinning, we can cover all our electricity consumption with green power – even to such an extent that we can also contribute to Europe’s green transition and security of supply,” said Climate, Energy and Supply Minister Lars Aagaard.
“We can now finally give the market the green light for the development of potentially 14GW of offshore wind or more – and most of them the state and Danes will for the first time become co-owners of and thus get a share of the actual income from offshore wind.
“We are introducing some new requirements for sustainability and establishing a marine nature fund, so that nature is also considered. We must now write the next chapter in collaboration with the market players, because they are the ones who must take the ball forward.”
Acting Minister of Economy Stephanie Lose said: “We have entered into a broad agreement which sets the framework for a historically large expansion of green electricity. The Danish marine areas will be an engine in the green transition – not just in Denmark, but throughout Europe. The agreement will also strengthen security of supply and support Danish positions of strength and jobs.
“At the same time, it will contribute to making Europe more independent from Russian gas. Finally, the agreement ensures that the whole of society will share in the returns from the Danish wind resources.”
Business Minister Morten Bødskov added: “It is a historic day in every way. With the agreement, we are utilizing and developing our position of strength within offshore wind on a historically large scale. This must be done in cooperation between the state and business.
“It will be very specific: the parties to the agreement agree that the state must be a co-owner of the individual offshore wind farms. To ensure that Danish society gets a fair share of the future income when our shared ocean resource is used for offshore wind. The co-ownership is a sign of confidence for the developers that the government wants to invest in the green transition – together with them and for the benefit of the whole society.”