Headlines
Denmark to halt offshore wind tenders to revamp subsidy model
Published by Global Banking & Finance Review®
Posted on January 31, 2025
2 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 31, 2025
2 min readLast updated: January 26, 2026
Denmark halts offshore wind tenders to revise subsidy model, planning new tenders with potential subsidies due to market challenges.
COPENHAGEN (Reuters) - Denmark will halt all ongoing offshore wind tenders as the existing framework where no subsidies are offered does not work under current market conditions, its energy minister said on Friday.
The global offshore wind industry has been hit by surging costs, rising interest rates and supply chain bottlenecks. Denmark said in December that its latest tender for wind at sea had failed to attract any bids.
The government will now start preparations to launch a new offshore wind tender this year with a capacity of two to three gigawatts (GW), where state subsidies might be offered, energy minister Lars Aagaard told a press conference.
"Our assessment right now is that we might be required to support offshore wind. It's not because we're happy about it, but it's necessary," Aagaard said.
Denmark has been a pioneer in both onshore and offshore wind, and is home to turbine maker Vestas and the world's largest offshore wind developer Orsted. Orsted said on Friday it would replace its CEO as it seeks to arrest an 83% slump in its share price since its 2021 peak.
The government also said it planned to help finance a hydrogen pipeline running from Denmark to the German border.
Using excess power generated by wind at times when it is not needed by users to produce so-called green hydrogen is seen as critical to Europe's green transition, but development has stalled.
"At this stage, time is of the essence, and therefore the government is committed to making export to Germany possible from 2030," the energy ministry said in a statement.
(Reporting by Stine Jacobsen and Isabelle Yr Carlsson; Editing by Jason Neely and Frances Kerry)
Denmark is halting all ongoing offshore wind tenders because the existing framework without subsidies is not effective under current market conditions.
The government plans to launch a new offshore wind tender this year with a capacity of two to three gigawatts, potentially offering state subsidies.
The global offshore wind industry has faced challenges due to surging costs, rising interest rates, and supply chain bottlenecks.
Green hydrogen is critical to Europe's green transition, and Denmark plans to use excess wind power to produce it, although development has stalled.
Denmark is committed to making hydrogen exports to Germany possible by 2030, emphasizing the urgency of the project.
Explore more articles in the Headlines category
