Denmark invests billions in offshore wind farms to power millions

Denmark is making a move toward a greener future, committing billions of dollars to develop offshore wind farms.

The Ministry of Climate, Energy and Utilities has unveiled plans to launch three large-scale offshore wind farm projects as part of its ongoing commitment to renewable energy, Caliber.Az reports via foreign media. 

The new wind farms are set to significantly increase the country's capacity to produce green energy, with a combined total of 3 GW. This capacity is expected to supply electricity to approximately 3 million homes, marking a major step in Denmark's efforts to combat climate change and reduce carbon emissions. The government will partner with private companies to implement the projects, providing subsidies worth 55 billion Danish krone (approximately $8.3 billion).

This financial support is designed to encourage private sector involvement and ensure the successful development of the wind farms. The ministry will kick off the process in the fall by opening tenders for construction. The government has already identified three key sites for the projects—two in Denmark's portion of the North Sea and one in the strait separating Denmark and Sweden. These locations are expected to provide optimal conditions for the wind farms, offering strong, consistent winds essential for generating electricity. The construction of these wind farms is expected to be completed by 2032–2033. 

In January, Denmark revealed it would pause all ongoing offshore wind tenders to overhaul its approach, explaining that a subsidy-free framework was unsuitable given the current market conditions. Just a month prior, the country had failed to attract any bids in its largest offshore wind tender to date, with analysts citing a rigid auction system and a failure to adjust to the evolving economic landscape for renewable energy projects. Denmark has long been a leader in both onshore and offshore wind, hosting turbine manufacturer Vestas and the world’s largest offshore wind developer, Orsted.

By Naila Huseynova