Wind

Dec 6, 2024

Failed Offshore Auction Highlights How Denmark Missed Winds of Change

Denmark’s recent failure to secure bids in an offshore wind power auction is attributed to an outdated auction model, economic changes, and rising competition.

The tender, which aimed for at least 3 gigawatts of capacity in the Danish North Sea, offered no subsidies but rather payments over 30 years with the state holding a 20% project stake. Analysts criticized the model, as it did not reflect the current costs of building offshore wind. The system’s lack of subsidies or revenue stabilization, and Denmark’s uncapped negative bidding, were seen as deterrents for developers, making it less attractive compared to other countries’ tenders. Read more.

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