Denmark has announced an ambitious offshore wind tender program aimed at significantly boosting its renewable energy capacity. The plan, revealed by the Danish Energy Ministry on Monday, includes tenders for three new offshore wind projects with a combined capacity of three gigawatts (GW)—enough to supply green electricity to approximately three million households. To encourage developer participation, the government will offer up to 55.2 billion Danish crowns (roughly $8.3 billion) in subsidies over a 20-year period.
These tenders will open in the autumn of 2025 and cover three strategic maritime zones: two in the North Sea and one in the Øresund Strait, the body of water separating Denmark from Sweden. The tender process will roll out in phases, with two of the projects scheduled to close by the spring of 2026 and the third by autumn 2027. If all goes as planned, the projects will be completed between 2032 and 2033. The staggered timeline reflects both the complexity of large-scale offshore infrastructure and current challenges facing the wind sector globally.
In recent years, the offshore wind industry has faced headwinds including rising inflation, surging interest rates, and supply chain disruptions. These factors have made wind farm development significantly more expensive and risky, leading many governments—including Denmark—to reevaluate how tenders are structured. Energy Minister Lars Aagaard emphasized the geopolitical and environmental urgency of the initiative, noting that expanding domestic renewable energy will reduce Denmark and Europe’s dependence on Russian fossil fuels.
The final amount of subsidy each project receives will be determined through competitive bidding. Bidders will submit proposals based on their cost estimates and expected market conditions, with the government setting a maximum subsidy ceiling of 55.2 billion crowns. Interestingly, if electricity prices rise above certain thresholds, developers may not require any subsidies, and the government could instead earn revenue. This flexible model aims to balance market realities with the need to accelerate clean energy deployment.
This new subsidy framework represents a departure from Denmark’s recent experiment with zero-subsidy tenders, which struggled to attract participants under tougher economic conditions. In January 2025, the Danish government announced it would halt all ongoing offshore wind tenders to reassess its approach. That move came just a month after a major tender failed to receive any bids—highlighting the need for a more adaptive, investor-friendly model in today’s energy market.
Despite recent setbacks, Denmark remains a global leader in wind energy innovation. The country is home to wind turbine giant Vestas and offshore wind powerhouse Ørsted. With this new round of tenders and significant financial backing, Denmark is reaffirming its commitment to a green energy future. The success of this initiative could also serve as a template for other countries grappling with how to make renewable energy investment more appealing in a volatile global economy.