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Denmark’s Record-Breaking Offshore Wind Tender Aims for Up to 10 GW

23 Apr 2024

Denmark took a significant step toward becoming a leader in renewable energy with the launch of its largest-ever offshore wind tender. This tender aims to generate at least 6 gigawatts (GW) of wind power and could expand to 10 GW, a development that aligns with Denmark's ambitious climate goals and its vision to become a net exporter of green power.

Minister for Climate, Energy, and Utilities, Lars Aagaard, announced the launch, emphasizing the potential of the tender to cover all of Denmark's power consumption with green electricity. In addition to powering the country, the tender aims to produce green hydrogen and fuels for the transportation industry.

The Danish Energy Agency set the framework for the tender after political agreement earlier this year, designating six locations for development: North Sea I, Kattegat, Kriegers Flak II, and Hesselø. Developers will have the flexibility to optimize their projects within each lease, potentially increasing the overall wind power output to more than 10 GW.

Denmark's offshore wind capacity currently stands at 2.7 GW, with an additional gigawatt expected by 2027. The country's long history of wind energy innovation began with the commissioning of the world's first offshore wind farm 33 years ago.

The tender, which includes 30-year leases, does not offer state subsidies but requires yearly concession payments. Denmark will co-own 20% of the wind farms, projecting construction costs of around $2.3 billion per gigawatt of capacity. The new wind farms are scheduled to be operational by 2030, in line with Denmark's goal of reducing emissions by 70% from 1990 levels by the end of the decade.

Source: maritime-executive.com

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