Danish Energy Agency Again Declines Applications for Feasibility Study Authorizations Under an 'Open-Access' Plan

In a series of decisions made in September 2025, the Danish Energy Agency (DEA) denied feasibility study permits for 37 applications, including three for offshore wind farm projects with elements of testing. This move comes after the DEA resumed the processing of several offshore wind farm projects in March 2023, following a suspension in February of the same year.

The decision not to grant feasibility study permits was based on the assessment that the permits would entail a waiver of state funds, which could potentially constitute illegal state aid in the current offshore wind market. The DEA's Deputy Director General, Stig Uffe Pedersen, stated that granting a preliminary exploration permit that gives the applicant exclusive rights to a given sea area without competition could be illegal state aid.

The suspended projects include the Aflandshage and Frederikshavn offshore wind farm projects, which were granted feasibility study permits in 2018 and 2019, respectively. The denial of permits may discourage potential investors from entering the offshore wind market in Denmark, potentially impacting the development and growth of the industry.

The Danish Energy Agency's decision may also lead to a decrease in the number of offshore wind projects being developed in Denmark. In a positive development, the Energy Complaints Board overturned a number of decisions rejecting applications for feasibility study permits under the scheme and forwarded the cases to the Danish Energy Agency for reconsideration in May and June 2024.

The DEA's assessment was based on several postponements of competitive tenders in other European countries in recent years, which have ended with payment from the proponent to the state. The bidders' willingness to pay in connection with the tender for the Thor offshore wind farm in 2021 and the subsequent sharply increasing interest in the open-door scheme also played a role in the decision.

In addition to the Aflandshage and Frederikshavn projects, the DEA resumed the assessment of several other offshore wind farms in March 2023, including Jammerland Bugt, Lillebælt South, Omø South, and Nordre Flint. The DEA did not grant any feasibility study permits for offshore wind projects under the open-door scheme due to concerns about state aid.

The denial of feasibility study permits for offshore wind projects under the open-door scheme may have significant implications for the development of the offshore wind industry in Denmark. The DEA's decisions will likely prompt further discussions and potential changes in the regulatory framework for offshore wind development in the country.

Danish Energy Agency Again Declines Applications for Feasibility Study Authorizations Under an 'Open-Access' Plan