Government to allow state aid for offshore wind

The Danish government shifts its policy, now ready to grant state aid to offshore wind energy after the collapse of the country’s largest wind turbine auction. Preparation for new tenders of 2-3 gigawatts of offshore wind will commence, and an ongoing large tender in Danish waters will be canceled. Climate, Energy and Utilities Minister Lars Aagaard emphasized the need for change and expressed the government’s willingness to provide financial assistance when necessary. Market conditions for offshore wind have deteriorated in recent years, leading to no bids on a major tender expected to generate revenue. Aagaard has not yet specified the amount of state aid but indicates various forms of support, including sharing investment risks, will be considered. The government seeks political and public backing for introducing state aid for the sector.