Denmark is set to suspend all current offshore wind tenders after the no-subsidy framework was deemed unsustainable under today's market conditions. The global offshore wind sector has faced significant challenges, including rising costs, increased interest rates, and supply chain bottlenecks. A recent tender in December failed to attract any bids, prompting the government to reassess its approach.
In light of these challenges, the government is preparing a new tender for offshore wind projects later this year, with a planned capacity of between two and three GW. Under this revised framework, state subsidies may be offered to support project viability, reflecting the need for financial backing despite previous reservations about such measures.
Alongside these developments, the government is advancing plans to finance a hydrogen pipeline linking Denmark to the German border. The project aims to convert excess wind-generated electricity into green hydrogen. The pipeline is intended to enable electricity exports to Germany from 2030.
