Danish Offshore Wind Boom
Vattenfall Wins 1.8 GW Danish Offshore Wind Deals Under New Bidding Framework
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Key Points
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Nordsøen Midt was awarded to Vattenfall Vindkraft A/S, acting for a firm that has not yet been formed, while Hesselø was awarded to Vattenfall Vindkraft Offshore Wind DK P/S.
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These awards mark the first deployments under Denmark's updated offshore wind bidding system, which employs two-sided CfDs backed by state support and longer project timelines to boost investment appeal.
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Competition among bidders was notable: Nordsøen Midt attracted two bids, while Hesselø drew five bids, according to the Danish Energy Agency.
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The tender process in Denmark was launched in November 2025 under a political agreement among multiple parties, signaling broad cross-party support for offshore wind expansion.
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Some sources differ on Hesselø's planned capacity (per-project scale): Renewables Biz cites 1.2 GW, while other reports list 800 MW, reflecting evolving project scope and figures.
Swedish energy giant Vattenfall has won two Danish offshore wind contracts totaling at least 1.8 gigawatts, enough to power roughly 1.8 million Danish homes, according to Reuters. The awards cover Nordsøen Midt in the North Sea and Hesselø in the Kattegat, with both farms expected to be fully operational by 2032.
The deals lock in fixed-price contracts for 20 years under a system called a Contract for Difference, or CfD — a government-backed arrangement that guarantees a set price for electricity sold. Strike prices were set at 504 DKK per MWh for Nordsøen Midt and 542 DKK per MWh for Hesselø, per Reuters.
Vattenfall Set to More Than Double Its Danish Wind Capacity
Vattenfall already operates offshore wind in Denmark, and these two awards will more than double its capacity there, according to Energy Watch. The company called the terms "attractive." Nordsøen Midt was awarded to Vattenfall Vindkraft A/S, which is acting on behalf of a company that has not yet been formed. Hesselø went to Vattenfall Vindkraft Offshore Wind DK P/S.
Grid connections have already been reserved for both projects. Operating permits run for 30 years and can be extended by another 10. Formal checks are still pending before contracts are fully signed, TGS4C reported.
Denmark's Revamped Bidding System Drove Strong Competition
These are the first awards under Denmark's updated offshore wind bidding framework, launched in November 2025 under a broad cross-party political agreement. The new system uses two-sided CfDs, meaning the government tops up payments when prices are low but also takes back money when prices run high. The goal was to fix low investor interest that had plagued earlier rounds.
Competition was real. Nordsøen Midt drew two bids, while Hesselø attracted five, according to the Danish Energy Agency as cited by TGS4C. The two awards are part of a larger 2.8 GW tender package that also includes a third zone called Nordsøen Syd.
Hesselø Capacity Figures Vary Across Reports
The combined capacity of the two projects is cited as at least 1.8 GW across most sources. However, the exact size of Hesselø alone is disputed. Energy Global and others list it at 800 MW, while Renewables Biz puts it at 1.2 GW. The gap likely reflects a project scope that is still being defined as planning moves forward.
What is clear is the scale of ambition. Together, the projects represent a major step in Denmark's push to expand clean power at home while keeping long-term electricity costs in check for consumers.
What Comes Next Before Shovels Hit the Seabed
Vattenfall must clear formal checks before contracts are finalized. Once signed, the 20-year CfDs begin counting from the date each farm starts generating power, not from today. Both projects must be fully online by 2032, giving Vattenfall roughly seven years to build two large offshore wind farms from scratch.
The awards signal that Denmark's redesigned tender system is working as intended — drawing serious bids and landing contracts with a major European developer, according to Yahoo Finance. The third zone, Nordsøen Syd, remains unawarded and is the next piece of the 2.8 GW puzzle to watch.
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