As Denmark moves towards full energy self-sufficiency by 2030, Green Power Denmark is calling for a significant shift in how offshore wind farm projects are tendered. The organisation proposes three new models for managing Denmark’s offshore wind energy post-2030, focusing on export markets and increasing market-driven flexibility for developers.
According to Denmark’s current energy transition plan, the country will rely entirely on renewable energy for its electricity needs by 2030, with wind turbines and solar panels powering industries, homes, and electric vehicles. The energy generated by new offshore wind farms built after 2030 will primarily be exported – either as electricity via power cables, as hydrogen through pipelines, or as refined green fuels.
A New Market-Driven Approach to Offshore Wind Tenders
Green Power Denmark suggests that the traditional state-controlled tendering system for offshore wind projects is becoming outdated. Kristian Jensen, CEO of Green Power Denmark, emphasises the need for a market-driven approach, giving developers greater freedom to design offshore wind farms and decide how best to utilise the energy they produce, whether as electricity, hydrogen, or green fuels.
“After 2030, we are entering a new era that requires a completely different approach. The time for traditional state tenders is coming to an end. In the future, developers should have more autonomy in deciding when and how to deploy wind turbines and whether to allocate energy as electricity or hydrogen. This will create maximum value for consumers and society,” said Kristian Jensen.
Green Power Denmark’s proposal includes three main models developed in collaboration with industry players. The first model involves the state offering offshore areas for tender on a continuous basis without conducting expensive preliminary surveys. This model is inspired by the way Denmark has tendered licenses for oil and gas exploration, which has been a lucrative strategy for the state.
Greater Flexibility for Developers
In this model, the tender winner would be responsible for conducting the necessary site surveys and would have complete control over the project design. The developer would decide whether to sell the energy as electricity, hydrogen, or green fuels produced through Power-to-X. Additionally, they would determine whether hydrogen production should occur offshore or onshore.
“The significant difference from today’s approach is that politicians would no longer micro-manage the expansion of offshore wind farms. The market would drive the projects and set the pace. When companies see a business opportunity in building an offshore wind farm, they can do so after winning the tender and confirming the site’s suitability for production,” explained Jensen.
Boosting Danish Welfare and European Energy Security
Jensen highlighted the importance of leveraging Denmark’s offshore resources to secure long-term benefits for Danish society. “If we properly exploit our offshore resources, we can generate substantial returns for the Danish welfare state. If we fail to think innovatively, we risk losing these potential gains. Denmark should see itself as a future exporter of renewable energy, helping Europe achieve its green transition,” he said.
Exporting Green Energy to Neighbouring Countries
The second model proposed by Green Power Denmark allows for direct energy exports from offshore wind farms to neighbouring countries, such as Germany, which has a huge demand for green energy. In this model, the Danish state would earn revenue from seabed leasing, while offshore wind projects would create jobs both during construction and operation.
“Our offshore areas will have much greater value if we use them to produce energy for export,” said Jensen, noting that this approach would also enhance European energy security.
Hybrid Projects for Cross-Border Collaboration
Green Power Denmark’s third proposal suggests future offshore wind development should focus on hybrid projects where electricity is shared between two or more countries. Denmark’s well-known energy island projects could serve as prime examples of this model if they proceed as planned.
As Denmark approaches 2030, these new market-driven models will be key to maximising the value of offshore wind resources, both for Denmark’s welfare and Europe’s energy future.
Source: Green Power Denmark
