Denmark starts its largest-ever offshore wind power tender

Denmark has kicked off its largest-ever wind power tender that will more than triple its offshore capacity by the end of the decade.

The tender will establish at least 6 gigawatts of wind power at sea in six parks by 2030, in addition to the Nordic country’s existing 2.7 gigawatts of offshore supply, the Danish Energy Agency said on Monday. 

The move is the latest sign of nations putting their trust in the offshore wind industry to help meet global climate targets despite a turbulent 2023, which was marred by massive writedowns by developers and delays to projects in nations from the US to the UK.

The Danish state will take stakes of 20% in the projects, copying a successful setup used for oil licenses in the previous decades. Bidders will be allowed to “overplant,” meaning they may set up additional turbines to reach 10 gigawatts of capacity.

Denmark, a country of roughly 6 million people, is home to some of the world’s largest wind energy companies, including Vestas Wind Systems A/S and Orsted A/S. Expanding its offshore parks is vital to reach the nation’s target to become carbon neutral in 2045. –BLOOMBERG