Danish Nearshore Tender Ending amidst Political Turmoil

Three pre-qualified bidders are expected to submit their bids for development of nearshore wind farms in Denmark on Thursday, 1 September, in the midst of great political uncertainty caused by the Danish government’s decision to withdraw their support and cut funding for these projects, according to the Danish Wind Industry Association (DWIA).

The wind industry now expects a swift political agreement that paves the way for the development of the five proposed nearshore wind farms, which are expected to be Europe’s cheapest, DWIA said.

The majority in the country’s parliament supports the nearshore wind farm project, and that makes the government’s decision to withdraw its support even more incomprehensible, according to DWIA.

The government decided to cut the funding for the nearshore projects as it deemed the Public Service Obligations (PSO) levy was too high.

Back in May 2016, Danish Energy Minister Lars Christian Lilleholt and Business and Growth Minister Troels Lund Poulsen presented a proposal for changing the PSO system which killed off the funding for the proposed five nearshore wind farms.

“Bidders and companies in the wind industry have lived up to their responsibilities and reduced the need for aid considerably in comparison to what the politicians have expected. It is now time for politicians and especially for the government live up to their responsibilities and complete work by selecting the winning bids and secure financing,” said Jan Hylleberg, Director of DWIA.

The original tender was scheduled to be closed in the spring of 2016, with wind farms expected to be completed in 2020. The nearshore tender initially comprised six sites, but Danish authorities recently removed the Sejerø Bugt site from the bidding process.

The five nearshore wind farms are proposed to be developed in Vesterhav Nord, Vesterhav Syd, Sæby, Smålandsfarvandet, and Bornholm.

Offshore WIND Staff