Denmark Awards First Offshore Wind Contracts After Failed Tender Round – Vattenfall Wins Both Projects

Esbjerg – Vattenfall has secured the first two contracts awarded under Denmark's reformed offshore wind tender system, after the country's previous tender round collapsed entirely. The original tender closed without any bids at the end of 2024; the first awards have now been made under the revised terms.

Market participants, in subsequent dialogue with the Danish Energy Agency, cited rising costs, strained supply chains and uncertainty around power prices, market development and demand as reasons for the 2024 tender's failure. In response, the government restructured the auction system around state-backed two-way Contracts for Difference (CfD), which the European Commission approved in March 2026.

Vattenfall Secures Both Awards – Lowest Bids at DKK 504 and 542

Vattenfall Vindkraft A/S prevailed over its competitors in the first round of the reformed system. For the Nordsøen Midt offshore wind project (minimum capacity 1,000 MW, located around 20 kilometers off the coast near Hvide Sande), the company submitted the lowest of two bids at DKK 504 per megawatt-hour (approximately EUR 67.4/MWh). For Hesselø (minimum capacity 800 MW, located around 30 kilometers off the coast of North Zealand in the Kattegat), Vattenfall submitted the lowest of five bids at DKK 542 per megawatt-hour (approximately EUR 72.5/MWh).

The guaranteed tariffs apply for 20 years from commissioning. Both wind farms, with a combined capacity of at least 1.8 GW (1,800 MW), are scheduled to come online by 2032 at the latest. According to the Danish Energy Agency, the electricity generated would be sufficient to theoretically cover the power needs of more than 1.8 million households. Formal review of the submitted documentation is still pending before contracts are signed.

"Winning both projects reflects our continued ambition to grow our offshore wind portfolio and support the electrification of industry and society," said David Flood, Head of Business Unit Offshore at Vattenfall.

Danish energy company Ørsted was among the bidders for Hesselø. In a statement to broadcaster TV2, the company congratulated the Danish government "on a successful, competitive tender process."

Danish Offshore Wind Capacity Set to Grow by Around 70 Percent

At the end of 2024, the country's installed offshore wind capacity stood at around 2.7 gigawatts, according to the Danish Energy Agency. The two new wind farms could increase Denmark's currently installed offshore wind capacity by around 70 percent. This figure does not include RWE's Thor offshore wind farm, currently under construction off the west coast of Jutland with a capacity of around 1,000 MW.

"Congratulations to Vattenfall. The company has extensive experience building offshore wind farms in Denmark and has both the capacity and the capabilities to construct two projects of this size," said Kristian Jensen, Managing Director of Green Power Denmark, commenting on the award to Vattenfall.

Whether the reformed tender model will prove successful for the third site in the tender package, Nordsøen Syd (minimum capacity 1,000 MW), remains to be seen. Bidding for that site is not scheduled until autumn 2028.

European Comparison: Offshore Wind Tenders Remain Challenging

Across Europe, only part of the planned offshore capacity was actually auctioned in 2025 – of 17 gigawatts planned, around 7 gigawatts were awarded, according to WindEurope, with several tenders failing or being cancelled. Industry representatives therefore view Denmark's successful award as an important signal that the reformed model is regaining investor interest.

Source: IWR Online, Aug 08 2026