Abbreviated form of legal source(s)
Description of support scheme
Support for offshore wind farms is mainly granted through site- and size-specific tenders decided in broad political agreements. A Contract for Difference (CfD) scheme is applied (§37a RE Act).
Currently two offshore wind farms (each 800 – 1200 MW) and two so-called energy islands (2 and 3 GW respectively) have been decided and will be tendered out between 2021 and 2023.
Sliding feed-in premium (also called Contracts for Difference – CfD)
Due to the size of the projects, conditions concerning minimum levels of economic and financial standing and technical and professional ability apply. Specific conditions can vary from tender to tender (Thor Wind Farm tender material).
Developers who wish to submit a bid in a tender for an offshore wind farm must first apply for prequalification within a specific date. The requests for prequalification will be assessed by DEA taking into account economic, financial, technical and professional capacity.
Prequalified developers (tenderers) may then submit an initial bid stating a non-binding single bid-price and the precise installed capacity.
Then follows a negotiation phase where adjustments can be made to the tendering material. By the end of this, tenderers will be invited to submit their final bid. This must include a binding single bid-price, the precise installed capacity and different declarations.
After the tender deadline DEA will assess the bids and appoint a concession winner. Thereafter the concession agreement is signed (Thor Wind Farm tender material).