On Monday, Denmark’s energy ministry announced plans to launch three offshore wind tenders with a total capacity of three gigawatts, sufficient to power approximately three million homes. The tenders, set to open this autumn, will offer subsidies of up to 55.2 billion Danish crowns ($8.32 billion) to developers. The projects will be located in two areas of the Danish North Sea and one in the waters between Denmark and Sweden.

A view of the turbines at an offshore wind farm near Nysted, Denmark, September 4, 2023.

The tender process will proceed in phases, with two tenders closing in spring 2026 and the third in autumn 2027. The projects are expected to be fully operational by 2032 and 2033, respectively. Denmark’s Energy Minister Lars Aagaard stated: “We need more secure green power and energy to make Denmark and Europe independent of energy from Russia.”

The offshore wind sector has faced challenges, including rising costs, higher interest rates, and supply chain constraints, leading some governments to pause or cancel tenders due to low bidder interest. Denmark’s ministry noted: “It is the bid price and the development of electricity prices that determine whether it will be necessary to support the projects, or whether money will come to the state.” The subsidies, capped at 55.2 billion crowns over 20 years, will depend on the bids submitted.

Earlier this year, Denmark paused all ongoing offshore wind tenders to revise its approach, acknowledging that a no-subsidy model was not viable under current market conditions. In December 2024, the country’s largest offshore wind tender received no bids, with analysts citing an inflexible auction structure and failure to adapt to economic shifts in renewable energy.

Denmark, a leader in wind energy, is home to Vestas, a major turbine manufacturer, and Orsted, the world’s largest offshore wind developer. These tenders mark a renewed effort to expand the nation’s renewable energy capacity.