Recent changes to the Danish offshore wind framework could not only impact coming Danish offshore wind projects, but also set new standards for project contributions to society
May and June 2023 have brought significant changes to the Danish offshore wind framework:
- At the end of May, a new auction framework was introduced with a plan to tender 9 GW (potentially up to 14 GW) of offshore wind.
- The new framework phases out subsidies and introduces 20% state ownership of all future projects. This novel state ownership concept is a way to ensure that projects contribute financially to society in a mature market with an already established supply chain, where local content rules and similar commonly used levers may not be efficient anymore. Other markets, particularly mature markets, could be inspired by this approach.
- Last, but not least, Denmark adds to a new trend of countries that focus on the emission impact of offshore wind, which means that certain sustainability criteria have been introduced to the auction model.
- In June, a new MSP was approved, effectively shutting the open-door scheme for commercial projects and leading to the rejection of more than 20 GW of project applications, with only three projects allowed to continue the process.
Access now our recently published subscriber-access market insights on the regulatory changes in Denmark or reach out to us to learn about Aegir Insights' offshore wind market intelligence.