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Denmark is putting dozens of offshore wind power projects on hold

2023-02-09T15:32:41.577Z


The world's first offshore wind farm was opened in Denmark in 1991, and the country still likes to see itself as a pioneer. Now 33 projects have been stopped indefinitely.


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Wind turbines off the Danish island of Samsø in the Baltic Sea: Projects “suspended until further clarification of EU legal issues”

Photo:

Bob Strong / REUTERS

When it comes to offshore wind energy, Denmark is regularly at the forefront.

In 1991, the world's first offshore systems were connected to the grid here, and today the country is planning huge energy islands to generate green electricity and hydrogen.

Even California draws on the expertise of the small Scandinavian country when expanding the technology.

But in Copenhagen, the Danish energy authority has now temporarily stopped all private offshore wind power projects in their own country according to a specific application system.

The processing will be "suspended until further clarification of EU legal issues," said the authority this week.

The application practice - in principle widespread in Denmark for almost 25 years - may violate EU rules, it was said as a justification.

This was the conclusion reached by the Danish Ministry of Energy and Climate together with the authority responsible for state subsidies.

Free use of the seabed as a problem?

The background to the Danish concern is the so-called "open door rule".

The application practice is considered a kind of lean alternative to public procurement.

According to the newspaper »Berlingske«, the problem is that offshore projects have now shown that they too can be operated profitably.

Because: If money is earned with the parks, according to »Berlingske«, then from the point of view of the authorities it is questionable from the point of view of state aid if the seabed is left to the operators and investors free of charge as before.

The stop affects 33 smaller and larger offshore wind projects that are supposed to make an important contribution to the country's ambitious climate goals.

According to media reports, the total capacity that is now threatened is between almost 13 and 21 gigawatts.

According to the business newspaper »Finans«, just one day after the temporary shutdown, an investor announced that a wind farm projected off the coast of Frederikshavn could not be realized as planned.

If, in view of this situation, a solution is not quickly found at European level, that would probably be a devastating signal: while the USA is bringing green investors into the country as part of the Inflation Reduction Act, the European states are threatening to block themselves from expanding the energy transition.

Denmark's new climate minister, Lars Aagaard, spoke of a "serious situation for the green transition and in particular for the market participants who are willing to invest in this type of offshore wind".

He was "deeply frustrated," said the politician of the Danish moderates.

He is already in personal contact with the Danish Vice President of the EU Commission, Margrethe Vestager, to talk about the further expansion of wind energy.

Frederiksen wants to negotiate at the EU summit

At the same time, criticism of the temporary halt to the "Open Door" program is growing, particularly in the energy sector.

Giles Dickson from the industry association WindEurope said: "This decision is completely absurd - especially at a time when the EU is determined to promote the development of renewable energy rather than hindering it." The industry association Green Power Denmark already fears that the country's climate goals are now threatened.

Socialist Prime Minister Mette Frederiksen announced that she would like to discuss the issue with European Commission President Ursula von der Leyen at the extraordinary EU summit on February 9-10: "It is important to discuss how we can support the rapid expansion of offshore wind in Denmark.«

According to »Finans«, a few smaller, offshore wind farms have so far been realized through the »open door program«.

Since there are sometimes disputes about wind power in Denmark too, the rules of the program were changed last year and a municipal veto right was introduced.

According to »Finans«, before the new rules came into force, the energy agency suddenly received dozens of applications under the old rules.

Apr

Source: spiegel

All business articles on 2023-02-09

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