The Danish political 180 degrees: Denmark's new auction framework
The new political agreement provides a renewed positive outlook for offshore wind in Denmark
Yesterday, the Danish government presented a new auction framework for the upcoming 3 GW auctions, a quick turnaround after the failed North Sea auction in December 2024.
The support budget of DKK 44.2bn (EUR 5.92bn), allocated via a 2-sided capability CfD over a 20-year period, results in reasonably attractive business cases across all three auctioned sites, namely North Sea Middle, North Sea South and Hesselø.
In a period of general headwinds in the industry, improving the auction frameworks puts Denmark back on the map with its sites now standing out as particularly attractive compared to many other markets at this stage.
At Aegir Insights’ we have been analyzing the new Danish auction framework t in-depth, including business case modelling and IRR implications across various assumptions using Aegir Quant. Our clients have access to our freshly published analysis on the Aegir Platform, can customize the assumptions in Aegir Quant, as well as reach out to us for sparring.
Contact us here to learn more about our analysis or discuss how you can best position yourself in Denmark's upcoming offshore wind auction.
Aegir Newsletter: Stay up-to-date with development in offshore wind and new analysis by Aegir Insights
Delivered straight to your inbox, Aegir Insights' intelligence newsletter will sharpen your market insight with exclusive analysis on key markets, developments, and technologies shaping offshore wind.