What’s in this news?
The European Commission has approved a €5 billion Danish State aid scheme to support offshore wind development. Covering the Hesselø and North Sea I Mid projects, the scheme is expected to play a key role in achieving the EU’s 2030 renewable energy targets and accelerating the transition to a net-zero economy.

The European Commission has approved a €5 billion (DKK 37.6 billion) Danish State aid scheme aimed at supporting offshore wind energy deployment.

The measure aligns with the objectives of the Clean Industrial Deal and is designed to contribute to the EU’s 2030 renewable energy targets.

Two offshore wind projects to be supported

The scheme will support the development of two major offshore wind farms:

• Hesselø Offshore Wind Farm
  • Minimum capacity: 0.8 GW
  • Expected annual generation: ~3.2 TWh
• North Sea I Mid Offshore Wind Farm
  • Minimum capacity: 1 GW
  • Expected annual generation: ~4.6 TWh

Combined, these projects are expected to generate electricity equivalent to approximately 25% of Denmark’s annual electricity production.

Two-way CfD mechanism

The support will be granted through a two-way Contract for Difference (CfD) mechanism:

• Producers receive payments when market prices fall below the strike price
• Producers pay back when market prices exceed the strike price

This design ensures both investor certainty and proper market functioning.

20-year support period

The scheme will run for 20 years and will be allocated via a competitive bidding process. Support will be based on potential generation capacity rather than actual production.

Supporting EU energy transition

The Commission concluded that the scheme is:

• Necessary and proportionate
• Supportive of the net-zero transition
• Effective in reducing fossil fuel dependency

and compliant with EU State aid rules.

Is Türkiye Ready for Offshore Wind? Industry Perspectives Point to Industrial Potential

Offshore wind energy is becoming one of the fastest-growing segments of the global energy transition. As the sector expands across Europe, discussions around Türkiye’s offshore wind potential are also gaining momentum.

Industry representatives speaking during KEY – The Energy Transition Expo 2026 highlighted both the opportunities and the structural challenges facing offshore wind development in Türkiye.

According to DÜRED Chairman Murat Durak, Türkiye already has a significant industrial base that could support offshore wind projects.

A Strong Industrial Ecosystem

Durak pointed out that Turkish shipyards and heavy industry facilities are already capable of manufacturing various offshore structures and components.

Some shipyards are already involved in manufacturing for European offshore projects, indicating that Türkiye could potentially play a role within the broader offshore wind supply chain.

This industrial capacity suggests that Türkiye could position itself not only as a project developer but also as a manufacturing and supply hub for offshore wind equipment.

Port Infrastructure Remains a Critical Requirement

Despite this industrial capacity, Durak noted that one of the key missing elements is dedicated offshore wind port infrastructure.

Offshore wind projects require large-scale logistics operations for transporting turbine components, installing foundations, and maintaining offshore structures.

Developing suitable port infrastructure is therefore considered an important step for enabling large-scale offshore wind projects in Türkiye.

Supply Chain Opportunities

DÜRED Board Member Bilgihan Yaşacan emphasized the importance of the offshore wind supply chain.

According to Yaşacan, offshore wind development creates opportunities across a wide range of sectors, including:

• marine construction
• engineering services
• offshore platforms
• subsea cable installation
• heavy logistics and equipment manufacturing

He stressed that supporting the development of companies capable of operating in offshore environments will be essential for building a sustainable offshore wind ecosystem.

Regional Opportunities

Industry representatives also highlighted that offshore wind opportunities should not be viewed solely within Türkiye’s domestic market.

Potential offshore wind developments in the Mediterranean region and the Middle East could create additional opportunities for Turkish shipyards, engineering firms, and industrial suppliers.

The Mediterranean Could Become a New Offshore Market

While Northern European countries have led offshore wind development for many years, the Mediterranean region is still considered an emerging market.

According to sector representatives, this situation could create new opportunities for countries with strong industrial capabilities such as Türkiye.

If offshore wind projects begin to expand in the Mediterranean basin, Türkiye’s industrial sector could play an important role in supporting regional offshore wind development.

On 14 January 2026, the United Kingdom awarded a total of 8.4 GW of offshore wind capacity under Allocation Round 7 (AR7), marking the largest offshore wind auction ever held in Europe.

The awarded capacity includes 8.2 GW of bottom-fixed offshore wind and nearly 200 MW of floating wind projects. The new capacity is expected to generate enough electricity to power approximately 10 million homes.

Record competition drives competitive pricing

AR7 was one of the most competitive offshore auctions ever held in Europe. A record 19 projects, representing a combined potential capacity of 24 GW, were eligible to bid.

The strong competition resulted in 2024 strike prices of:

• £91.20/MWh in England and Wales

• £89.49/MWh in Scotland

These levels are approximately 40% lower than the cost of building and operating new gas plants in the UK (£147/MWh) and nearly 30% lower than new nuclear plants (£124/MWh).

The 8.4 GW of new offshore wind capacity is estimated to save UK billpayers nearly £1.7 billion per year compared to gas generation.

CfD framework proves effective

The UK’s two-sided Contracts for Difference (CfD) mechanism once again demonstrated its ability to de-risk projects and provide long-term revenue visibility.

With a total budget of £1.79 billion — exceeding the initial £1.1 billion allocation — the UK Government secured additional capacity to enhance energy security and economic resilience.

Following the failed AR5 round in 2023 and limited new capacity under AR6, AR7 represents a significant turning point for offshore wind deployment in the UK.

AR7 winning projects

AR7 awarded support to six bottom-fixed offshore wind projects and two floating wind projects:

The 192 MW awarded to floating wind projects marks another step toward commercial-scale floating wind deployment. Industry stakeholders emphasise the need for tailored support schemes, clear auction timelines for floating wind, and infrastructure investment in ports to sustain momentum.