The European Fee has granted clearance below European Union state support guidelines for a EUR 5-billion ($5.78 billion) Danish package deal for 2 proposed offshore wind initiatives.
The initiatives are North Sea I Mid, deliberate to have a capability of not less than 1 gigawatt (GW) or about 4.6 terawatt hours (TWh) a 12 months, and Hesselø, anticipated to have a minimal manufacturing of 0.8 GW or 3.2 TWh each year.
“The mixed annual manufacturing of those two wind farms will characterize the equal of round 25 % of final 12 months’s complete electrical energy manufacturing in Denmark”, the Fee mentioned in a press launch.
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The help will likely be disbursed as a month-to-month variable premium below a two-way contract for distinction (CfD). “This will likely be calculated by evaluating the bid value to a reference market value, weighted by the month-to-month functionality of the offshore wind farm”, the Fee mentioned.
“The beneficiaries will obtain funds when the reference value is under this bid value. When the reference value is above the bid value, the beneficiaries must pay the Danish authorities”.
“The Fee discovered that the Danish scheme meets the situations of the CISAF (sections 3 and 4.1.2)”, the Fee added, referring to the Clear Industrial Deal State Help Framework. “Specifically, the help will likely be supplied as direct value help, via a capability-based two-way CfD, which will likely be awarded through a aggressive bidding course of.
“The compensation will likely be granted for the potential electrical energy manufacturing that the wind farm might have produced moderately than for its precise manufacturing. This design ensures that the market capabilities correctly and that the scheme doesn’t compensate producers for manufacturing in any durations during which the market worth of that manufacturing is destructive, in step with the EU’s electrical energy market design guidelines”.
The CISAF, which the Fee adopted June 25, 2025, permits state aids that purpose to scale up renewable vitality and low-carbon fuels, decarbonize industrial processes, broaden clear expertise manufacturing, briefly maintain down electrical energy costs and derisk personal investments within the vitality transition.
The 2 wind farm initiatives are amongst three that the Danish Vitality Company opened for bids late final 12 months.
Together with North Sea South, the initiatives have a deliberate capability of not less than 2.8 GW in complete, sufficient for about 3 million Danish and European houses, the company mentioned in a media launch November 20, 2025.
Denmark initially supplied six areas for tender in 2024. “By the tip of the deadline for the primary three areas, the Danish Vitality Company had not obtained any bids”, the company mentioned. Subsequently it held a number of market dialogs that shaped the idea of two political agreements final 12 months.
“The brand new 2.8 GW offshore wind tenders are primarily based on the agreements”, the company mentioned.
It mentioned the three initiatives have to be accomplished between 2032 and 2034.
To contact the writer, e-mail jov.onsat@rigzone.com
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