Industry: 'Unviable Business Case' to Blame for Denmark's OW Tender Failure
February 28, 2025
The Danish Energy Agency has published a memo with the results of the market dialogue conducted to investigate the background for the failure of the 3 GW offshore wind procurement in the North Sea.
The overall purpose of the market dialogue has been to uncover what has been decisive for the companies' decision not to submit bids for the 3 GW offshore wind in the North Sea.
In this connection, the Danish Energy Agency has held individual meetings with 17 companies consisting of a wide range of active developers and subcontractors, and has received written input from a number of companies.
The companies all point to the fact that the business case was not viable due to a combination of sharply rising costs and the prospect of narrowing revenue sources in the Danish electricity market.
In addition, market uncertainties in particular led to an increase in risk premiums and required rates of return.
To remind, in April 2024 Denmark launched its biggest offshore wind tender to date, offering no subsidies to companies competing for the right to develop offshore wind projects.
The tender in the failed to attract any bids.
The results of the market dialogue will be included in the preparatory work with a view to opening new offshore wind procurements of 2-3 GW.
