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01 Feb 2023: The Danish Energy Agency has suspended the processing of offshore wind turbine projects and other renewable energy projects under the open door scheme. The Ministry of Climate, Energy and Supply has, in dialogue with the government's State Aid Secretariat, determined that projects may be in breach of EU law. All case processing for 33 projects is on hold until scheme has been investigated. There are currently 27 pending applications for feasibility study permit; four projects (Jammerland Bugt, Little Belt South, Omø South and Nordre Flint) currently undertaking preliminary feasibility studies; and two projects (Aflandshage and Frederikshavn) which currently hold establishment permits as of autumn 2022. Previous analysis from March 2021 revealed challenges of the scheme relating to tendencies for large farshore projects and diificulties associated with grid planning, and marine and onshore spatial planning. Also given the developments and cost decline of offshore wind the scheme was deemed outdated. In June 2021 primary adjustments were to introduce a distance restriction so that offshore wind farms could only be built under the open door scheme within 15 km from the coast, that the municipalities' right of objection was changed to a right of veto, and that the scheme was made technology neutral. Further legislative amendments were introduced in July 2022. During 2022 the government received an unprecedented number of applications under the open door scheme. Of the 54 received 17 have withdrawn due to overlap with land reservations and 12 projects overlapped with other applications and were placed in priority queue based on ‘first come first serve’. Due to the significant volume of applications the government called an emergency consultation in September 2022 discussing the potential cumulative impacts of so many projects and the fact that they were outside of designated renewable energy areas in the marine spatial plan so approval of sites would require supplement to the marine plan. A further consultation in autumn/winter 2022/23 highlighted potential challenges in relation to, among other things, shipping, defense and nature. Following the Thor tender, in June 2022 the government made a climate agreement stating intent to ‘reap the full potential of offshore wind’. The government asked the DEA to look into possible payment model for marine areas which could be used for open door projects due to the amount of interest and also the possibilities of introducing other requirements on e.g. sustainability, social clauses etc. Throughout Q4 2022 the DEA and government worked on developing a payment model. The possibility of a payment model, and first come first serve basis raised the compatibility issue with EU state aid rules and following discussion with the European Comission in January 2023, the Danish government decided to suspend case processing.
400 MW
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