en.Wedoany.com Reported - Recently, the Danish Energy Agency announced that Sweden's Vattenfall has won the bids for two offshore wind projects in the North Sea Central and Hessele, with a combined minimum planned installed capacity of 1.8 GW. Both projects are located in Danish waters and are scheduled for completion by the end of 2032.

The North Sea Central project is located in the North Sea off western Denmark, with a minimum installed capacity of 1 GW and an estimated annual power generation of approximately 4.6 TWh. The Hessele project is located in the Kattegat Strait between Denmark and Sweden, with a minimum installed capacity of 800 MW and an estimated annual power generation of approximately 3.2 TWh. Once both wind farms are completed, their combined annual power generation will reach approximately 7.8 TWh, equivalent to about 25% of Denmark's 2025 electricity generation.

The projects adopt a two-way contract for difference mechanism with a support period of 20 years. When the reference electricity market price falls below the strike price, the project company receives a differential subsidy; when the reference price exceeds the strike price, the project company must return the difference to the Danish government. The Danish government has set net subsidy caps of DKK 15.7 billion and DKK 21.9 billion for the North Sea Central and Hessele projects, respectively, totaling DKK 37.6 billion.

The Danish Energy Agency launched the project tender in November 2025, with bids closing on May 20, 2026. This award determines the project developers, but both wind farms still need to advance environmental impact assessments, engineering design, construction permits, and final investment decisions before proceeding to the procurement phase for turbines, foundations, submarine cables, offshore substations, and installation works.

Denmark's previously launched subsidy-free offshore wind tender received no bids, prompting an adjustment to the development mechanism. The new tender reduces development risks by introducing contract for difference and more flexible construction arrangements. Vattenfall currently operates five offshore wind farms in Denmark, and with the completion of the new projects, the number of offshore wind farms it operates in Denmark will increase to seven.