Offshore Wind Worldwide 2022 edition - Flipbook - Page 54
54
Hogan
Lovells
Denmark
II. The Offshore Wind
Promotion system
The Danish tender process comprises the
following stages:
The Danish State owns the right to utilise
energy from wind within the territorial
waters and the EEZ. Therefore, any
utilisation of such energy by an OWF
developer requires a licence from the State
issued by the Danish Ministry of Climate,
Energy and Utilities. In Denmark, such
licences can be obtained through an opendoor or tender procedure.
1.a call for a tender by the Danish Energy
Agency (DEA), which will include draft
tender specifications and concession
agreements;
The OWFs established through an open-door
procedure can cover areas which have not
been designated for future farms in a spatial
plan. The project developer takes the
initiative to build an OWF in a specific area
by submitting an unsolicited application for
a licence to carry out preliminary
investigations. Municipalities can object to
the granting of a permit for a coastal OWF’s
to be established under the open-doorprocedure.
The tendered OWFs cover areas elected by
the State based on a screening of the areas’
potential for wind energy balanced against
their impact on the nature and environment.
A screening was conducted in 2020. The
Danish state has reserved two of the areas for
the construction of energy islands, in the
North Sea and in the Baltic Sea, which means
that it is no longer possible to apply for a
licence for OWFs in these areas through the
open-door procedure.
1
2.pre-qualification process, including
negotiation with tenders;
3.a final call for a tender;
4.submission of bids in the form of a fixed
feed-in tariff for a defined amount of
produced electricity;
5. evaluation and selection of a winner; and
6. concluding the concession agreement.
The tenderer must provide a guarantee upon
the signing of the concession agreement for
the OWF’s construction of and connection to
the grid. The guarantee needs to be from a
financial institution, an insurance company
or a similar institution. The concession
agreement will specify the date for when a
guarantee must be posted, which is typically
10-15 years after grid connection. The size of
the guarantee varies depending on the size of
the OWF but is typically set at 10 per cent of
the estimated value of the project.1
Information from the model concession agreement for the Thor Tender.