Denmark Awards EUR 6.3bn Offshore Wind Contracts to Vattenfall
Denmark's government has awarded Vattenfall contracts for two offshore wind farms, totaling 1.8GW capacity, valued at EUR 6.3 billion. This move marks a shift back to state-supported pricing models, crucial for attracting viable investments in offshore wind amid rising costs and previous auction failures.
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The Danish government awarded Vattenfall two contracts for offshore wind farms, Nordsøen Midt and Hesselø, with a combined capacity of 1.8GW. The winning prices were set at DKr504/MWh ($77.61/MWh) and DKr542/MWh ($83.47/MWh).
This decision reflects a return to state-backed price guarantees following a failed zero-subsidy auction in 2024. The projects are expected to generate sufficient electricity to power approximately 1.8 million homes by 2032.
Industry leaders emphasize the need for continuous project flow to maintain competitiveness in offshore wind, suggesting that the government should consider advancing future auction timelines. The shift in Denmark's approach could influence wider European offshore wind strategies as countries reassess their support models in response to rising project costs.
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