Please note that the information provided on this webpage does not reflect the latest political decision regarding the postponement of the tender and the subsequent analysis to identify better or more cost-effective solutions for the North Sea Energy Island. Get the latest info and updates by reading the Ministry's press release.
A broad majority of the Danish Parliament agreed on June 22, 2020, to initiate the realization of two energy islands, which will connect and distribute power from surrounding offshore wind farms. The North Sea island will have a minimum capacity of 3 GW, with potential for expansion to 10 GW offshore wind. Since the 2020 agreement, the political parties supporting the project have reached agreements about project specifics such as the construction concept and ownership of the energy island in the North Sea:
Construction concept: The architecture of the island will combine on-island transmission with platform-based systems situated around the island to speed up construction and provide flexibility for decades to come.
Ownership: The Energy Island in the North Sea is likely to be at least partially characterized as critical infrastructure. As such, the Danish State will take a majority ownership stake while partnering with one or more private actors to leverage private competences in regards to project development, technology and finance, innovation and sustainable leadership.
Watch the webcast: Why should companies consider investing?
We have released a webcast “The Energy Island in the North Sea – the future of large-scale offshore wind energy” presenting some of the key reasons to consider investing and participating in the project.
In the webcast, you will be introduced to two of the leaders behind the realization of the project, Mogens Hagelskær (Deputy General Director at Center for Energy Islands) and Anne Bøgh Johansen (Head of Office with responsibility for the tendering process).
Click the "V"-button in the lower right corner to watch the video in full screen.
The prequalification for becoming the Danish State’s private partner for the Energy Island in the North Sea is expected to be conducted in 2023 meaning private parties will have to start preparing and form consortia in order to be ready in time for the upcoming tender. Reasons to invest in the energy island include:
Active partnership: An active partnership with the flexibility to bid on projects in the North Sea and optimize business opportunities.
Strong project fundamentals: Strong national and international support and attractive location for offshore wind.
Secured cash flow: Availability-based secured cash flow from Danish TSO provides investors high predictability and low risk.
Flexible concept: Technological flexibility helps future-proof the island as later platform additions can be tailored to tomorrow’s technological solutions.
Long-term investment: Large, green investment with an investment horizon longer than most infrastructure investments.
First mover: Ability to leverage first-mover advantage for future islands gaining invaluable know-how into one of the first of many islands.
Early entry: Early entry into Europe’s new “green power plant” with opportunities to shape design and business decisions.
In advance of the prequalification, the Danish Energy Agency and its financial advisor, EY, will conduct a go-to-market process aimed at increasing the market awareness of the upcoming tender. In connection to this, the Danish Energy Agency and EY have released a teaser, which outlines the project and its investment case. The teaser can be accessed via the link below, which also contains the relevant contacts to reach out to for further details.
The upcoming tender process follows several market dialogues which the Danish Energy Agency has conducted for potential bidders and relevant industries on the procurement framework for the coming Energy Island in the North Sea. The market dialogues have been part of the initial preparations for the coming procurement procedure for co-ownership of the Energy Island in the North Sea. Also, the purpose of the market dialogues have been to optimize the framework for the energy islands, in order to receive as thorough and qualified bids as possible and in order to ensure the best and most cost-effective solution for establishing the energy islands for the benefit of society.
See link to the market dialogues at the bottom of the page.
Strategic environmental assesment
In relation to the strategic environmental assessment (SEA) of the North Sea Energy Island, it is assumed that it must include establishment in two phases:
- A first phase in which at least 3 GW of offshore wind power will be established, but with the possibility of up to 12 GW within the same area if the power per km2 is increased.
- A second phase in which a total of at least 10 GW of offshore wind power is established (phase one and two), but with the possibility of establishing a total of up to 40 GW (phase one and two) within the same area if the power per km2 is increased.
- The North Sea Energy Island will thus comprise at least 3 GW of offshore wind power in 2033, and a total of at least 10 GW offshore wind power with 2040 as the target time frame, with the possibility of establishing total offshore wind power of up to 40 GW if the power per km2 is increased.
The SEA will be broader than the political agreements to ensure flexibility in the implementation of one of the largest construction projects seen in recent years.
In relation to the tendering of Energy Island North Sea, a wide range of preliminary investigations and environmental assessments are being carried out. The preliminary studies include geotechnical, geophysical, and biological surveys, as well as collecting metocean data. The investigations are undertaken by the Danish TSO, Energinet.
The information in the reports and data is primarily aimed at potential bidders, but the environmental reports are also relevant for stakeholders in relation to the environmental assessments process.
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