No bids for Denmark offshore wind farms, says minister
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Construction costs and high interest rates appear to be putting off investors, said Energy Minister Lars Aagaard.
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COPENHAGEN - The Danish Energy Agency has not received any offers for three offshore wind farms, Energy Minister Lars Aagaard said, as the deadline for offers closed on Dec 5.
The three wind farms are the first half of the largest offshore power project in the country’s history, totalling 6 gigawatts.
“It is a very disappointing result - and not at all what was expected when we entered into the offshore wind agreement,” said Mr Aagaard.
He has asked the agency to talk to market participants to understand the lack of enthusiasm, he added.
Earlier on Dec 5, Sweden’s state energy group Vattenfall said they would not be making a bid because of economic conditions.
Construction costs and high interest rates appear to be putting off investors, said Mr Aagard.
“The circumstances for offshore wind in Europe have changed significantly in a relatively short time,” he added.
Denmark has invested heavily in wind generation to accelerate its transition to sustainable energy, and offshore production currently runs at 2.7 gigawatts, says the Danish Energy Agency.
The government’s target is to raise that capacity to 14 gigawatts by 2030. AFP
