What's Happening?
The Danish Energy Agency has announced a new round of tenders for offshore wind farms, incorporating subsidies to attract bids after a previous round failed in 2024. The new tender includes three projects
running through 2028, with a support scheme based on a Contract for Difference mechanism. This guarantees a fixed price for electricity generated, providing financial certainty for developers. The projects aim to supply green electricity to approximately three million homes, with sustainable elements like recyclability of turbine blades and nature-inclusive designs.
Why It's Important?
This development is crucial for Denmark's renewable energy goals, as it seeks to expand its offshore wind capacity. By offering subsidies, Denmark aims to overcome previous challenges in attracting bids, ensuring the successful development of wind farms. This move supports Denmark's commitment to increasing its offshore power capacity, contributing to its target of 14 GW by 2030. The initiative also aligns with broader European efforts to transition to renewable energy, potentially influencing other countries to adopt similar strategies to meet climate goals.
