Plans for Danish energy island move forward

Denmark's plans for an energy island in the North Sea have moved a step closer to reality following an agreement from political parties in Denmark regarding the framework for supply and ownership. The Danish Ministry of Climate, Energy and Utilities stated it is looking for strong public-private partnerships to drive the project forward.

The artificial energy island in the North Sea is being developed in an effort to form a connection between several countries and offshore wind farms in the North Sea. It is envisioned with a starting capacity of 3 GW from connected offshore wind farms. The capacity may increase to 10 GW in future. The total investments for the island itself, infrastructure and associated offshore wind farms will be approximately DKK 210 billion (€28 billion or £24 billion).

Under the framework, the state will hold at least 50.1 percent ownership of the island with the winning bidder responsible for its construction. Interested parties are welcome to form consortiums with investors, developers and contractors to submit joint bids. Bidders are also encourage to propose additional areas for the island which would support other green technologies.

The jointly owned island company will manage the island's areas, which, for rent or service payment, will be made available to the users of the island, including in relation to offshore wind, transmission and innovation

According to the framework, Energinet's net expenses related to transmission via the energy island as far as possible will be passed on to the tender-winning offshore wind projects that are connected to the energy island. This is aimed to secure offshore wind as cheaply as possible and maintain lower energy prices.

The Danish Ministry of Climate, Energy and Utilities stated that a draft tender is expected to be published next year.