Danish Energy Agency publishes results from the market dialogue on 3 GW offshore wind
The Danish Energy Agency publishes a memo with the results of the market dialogue that the Minister for Climate, Energy and Utilities asked the agency to conduct to investigate the background for the outcome of the 3 GW offshore wind procurement in the North Sea.
The overall purpose of the market dialogue has been to uncover what has been decisive for the companies' decision not to submit bids for the 3 GW offshore wind in the North Sea. In this connection, the Danish Energy Agency has held individual meetings with 17 companies consisting of a wide range of active developers and subcontractors, and has received written input from a number of companies.
The companies all point to the fact that the business case was not viable due to a combination of sharply rising costs and the prospect of narrowing revenue sources in the Danish electricity market. In addition, market uncertainties in particular led to an increase in risk premiums and required rates of return.
The results of the market dialogue will be included in the preparatory work with a view to opening new offshore wind procurements of 2-3 GW.
Read the Danish Energy Agency's memo “Summary of market dialogue on 3 GW offshore wind in the North Sea” (Pdf-file).
