The Danish government has proposed to restart the expansion of offshore wind in the North Sea, following the fact that no bids were submitted for the first tender, which ran until December 2024.

The new plan includes a fast-track offshore wind tender with guarantees and the construction of the first part of hydrogen pipelines to Germany.

Insurance and Pensions Denmark (I&P Denmark) stated that large-scale wind energy projects require capital-intensive investments. Therefore, it said it was important to change the rules for Danish offshore wind to encourage investment in Denmark again.

Commenting on the proposal, I&P Denmark CEO, Kent Damsgaard, said: “It is absolutely right for the government to move quickly and improve the framework for investments in offshore wind. We are in fierce international competition for green investments with the rest of the world.

“The pension industry and other investors can only invest where the return is competitive – otherwise the investments will go elsewhere.

“We would like to acknowledge that the government has listened to the business community and the pension industry, which is a major investor in renewable energy.”

In 2024, I&P Denmark and the Partnership for Offshore Wind investigated the economic conditions in Danish offshore wind and found that 1 GW had deteriorated by DKK 13.3bn since 2021.

The organisation said the framework conditions had “fundamentally changed” over the past few years, while the risk had increased “sharply” for companies and investors such as pension companies.

Therefore, it said the government's proposal is trying to take some risk out of the wind turbine projects and the hydrogen pipeline.

Damsgaard said it was positive that the government will look at better guarantees on prices for electricity and said the company’s analysis showed this was where a difference could be made to attract investors.

“As an industry, we have pointed to a double-sided guarantee, because that model has attracted very large investments in offshore wind projects in the UK,” he said.

The desire to invest in offshore wind is closely linked to the underlying infrastructure, in this case, the hydrogen pipeline to Germany.

"A connection from Esbjerg to the large German market through the hydrogen pipeline is a key decision because it gives investors better outlets for the electricity produced by the wind turbines in the North Sea,” he continued.

“Therefore, we are also pleased that the government is sending such a clear signal that speed is crucial so that the hydrogen pipeline can hopefully be ready in 2030.”

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