Splash247 reported that Denmark has awarded Swedish utility Vattenfall the Hesselø and North Sea I Mid offshore wind projects, with bids of DKK 504 ($77.8) per MWh for North Sea I Mid and DKK 542 ($83.7) per MWh for Hesselø.
Tender results at a glance
| Project | Location | Distance from coast | Minimum capacity | Bid price |
|---|---|---|---|---|
| Hesselø | Kattegat Sea, between Denmark and Sweden | ~30 km | 800 MW | DKK 542 ($83.7) per MWh |
| North Sea I Mid | North Sea, near Hvide Sande | ~20 km | 1 GW | DKK 504 ($77.8) per MWh |
The Hesselø project is located in the Kattegat Sea between Denmark and Sweden, around 30 km from the coast, with a minimum installed capacity of 800 MW, according to Splash247. The North Sea I Mid project sits in the North Sea approximately 20 km off the coast near Hvide Sande, with a minimum capacity of 1 GW.
Contract terms and grid connection
Splash247 reported that grid connections have been reserved for both projects, with the connection point located approximately 50 km inland. The consent will be granted for 30 years, with an option to extend it by a further 10 years. The offshore wind farms must be completed by 2032 at the latest.
Shift to contract for difference after failed 2024 tender
The previous offshore wind tender in Denmark, launched in 2024, covered six areas and failed to attract any bids, according to Splash247. Denmark then adopted the contract for difference (CfD) approach, which resulted in bids for two areas. The third offshore wind farm in this round, North Sea South, with a capacity of 1 GW, has a bid deadline in October 2028.
Vattenfall's Danish portfolio and demand context
According to Splash247, the Hesselø and North Sea I Mid projects build on Vattenfall’s 1.5 GW offshore wind portfolio in Denmark. Vattenfall operates five offshore wind farms in Denmark, generating around 6.5 TWh of electricity annually, enough to power approximately 1.5 million homes. The two new projects will be able to supply electricity equivalent to the consumption of at least 1.8 million Danish and European households.
Splash247 quoted David Flood, head of Vattenfall’s offshore business unit, as saying:
Wind power, together with other fossil-free sources of generation, can help meet the growing demand for clean electricity in Europe. Projects like this demonstrate how we are scaling offshore wind while maintaining a strong focus on affordability and long-term value.
Stig Uffe Pedersen, deputy director general of the Danish Energy Agency, added:
It is very pleasing that we have now reached an important milestone with a positive result, where we can announce the winner of the tenders.
The awarded per-MWh bids provide a contract price benchmark for offshore wind generation at the Hesselø and North Sea I Mid sites. Splash247 reported that the previous 2024 tender failed to attract any bids, and the new CfD approach produced competitive offers for two areas. The next test for the market will be the North Sea South tender, with a 1 GW capacity and a bid deadline in October 2028.
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