On 19 May 2025, the Danish government and a broad majority in Parliament entered into a political agreement that sets the framework for tendering three new offshore wind farms in Denmark. The agreement marks an important step towards a stronger green electricity supply and supports efforts to make Denmark and Europe more independent, secure, and climate-resilient.
The agreement addresses several years of uncertainty in the offshore wind sector, driven by rising costs, strained supply chains, and volatile electricity prices. To renew interest from investors and developers, the parties are introducing more flexible and attractive conditions to promote new offshore wind projects in the short term.
The three offshore wind farms – Nordsøen Midt, Nordsøen Syd, and Hesselø – are expected to supply green electricity to up to three million households. The agreement thereby strengthens the electricity supply and supports the goal of a secure and independent energy system in both Denmark and Europe.
Support model with state-backed risk sharing
The agreement introduces a new two-sided contract for difference (CfD), under which the state guarantees concessionaires a fixed settlement price for 20 years based on potential production. The model reduces exposure to electricity price fluctuations: if market prices fall below the bid price, the state provides support; if they exceed it, the concessionaire pays back the difference. A payment cap of DKK 55.2 billion has been set, with an expected support need of DKK 27.6 billion, financed via the Green Fund and fiscal space.
Deadlines and increased flexibility, including penalties
Tenders for Nordsøen Midt and Hesselø will open in autumn 2025 with bid deadlines in spring 2026. Nordsøen Syd will follow with a deadline in autumn 2027. Minimum capacity must be established by 2032 for the first two farms and 2033 for Nordsøen Syd. A new penalty regime includes lower penalties for delays in the first two years and removes former double penalties.
Requirements for sustainability and social responsibility
Offshore wind developers must document environmental impacts, use recyclable turbine blades, and prepare life cycle assessments. One of the farms must be built with a nature-inclusive design, and all must monitor environmental effects. Social requirements include apprenticeships, chain responsibility, and safeguards against social dumping.
Overplanting and efficient site use
Each wind farm must deliver at least 1 GW, but developers may add more capacity – known as overplanting – to support grid integration and Power-to-X. Additional capacity must be in place within two years of the minimum capacity deadline. A minimum power density of 4 MW/km² applies, and unused site areas will revert to the state for possible future tenders.
State funding for preliminary studies and defence adjustments
To lower developer costs, the state will fund preliminary site studies and defence-related adjustments needed to maintain surveillance of Danish waters. Approximately DKK 1.9 billion will be allocated – DKK 1.1 billion for defence adjustments and DKK 760 million for preliminary studies.
Long-term outlook
The government and the parties to the agreement intend to bring the remaining 6 GW of pre-investigated areas into use as market conditions allow. In 2026, they will meet again to discuss further steps to support electrification and green energy storage.
Read the full political agreement (in Danish): Agreement on tender frameworks for three offshore wind farms