The Danish government has decided to put the construction of Energiø Bornholm on hold, citing the ongoing German elections as a key factor. The decision, announced by Minister for Climate, Energy, and Utilities Lars Aagaard (M) at a press conference, casts uncertainty over the future of the large-scale offshore wind energy hub, initially slated for completion in 2030.
The move comes just a day after Bornholm’s mayor, Jacob Trøst (K), publicly celebrated a significant financial commitment from the European Union. On Thursday evening, Trøst had shared news that the EU had allocated €645 million (approximately 4.8 billion Danish kroner) in support of the project.
Trøst emphasized the project’s importance, stating, “This means business development, new job opportunities, new educational possibilities, and growth on Bornholm.”
Similarly, Claus Larsen-Jensen, leader of the local Social Democrats, remains hopeful that public investment will ultimately drive the green transition forward. “The EU funding shows that large-scale public investments are necessary to kick-start the green transition. More funding will follow,” Larsen-Jensen commented.
Government cites German elections as key obstacle
Energiø Bornholm was planned to be located about 15 kilometers south of the island, with an initial capacity of 3.3 gigawatts—enough to supply electricity to approximately 3.3 million Danish households. A significant portion of this energy was expected to be exported to Germany. However, Aagaard emphasized that the political situation in Germany played a crucial role in the government’s decision to halt the project.
“Germany is part of the equation because they are supposed to purchase a share of the energy that Denmark will produce,” Aagaard explained. The timeline for the wind farm’s completion is now uncertain.
Offshore wind farm auctions scrapped
In addition to freezing the Energiø Bornholm project, the government has also decided to cancel ongoing offshore wind farm auctions. The last auction round, which ended on December 5, 2024, failed to attract any bidders.
“We cannot wait for more empty envelopes,” Aagaard stated. “We are stopping the current auctions in Danish territorial waters. We do not want this to stand in the way of a swift clarification process, and in any case, we do not have the impression that there is any real interest in bidding on these projects.”
New auctions with State support planned for 2026
Despite the setbacks, the government plans to reintroduce two to three new offshore wind farm auctions in the first half of 2026. Unlike previous rounds, these will include the possibility of state financial support.
“The exact amount of government funding is yet to be determined,” Aagaard said, adding that details regarding the order and locations of the new auctions are also still under discussion. The hope is that state subsidies and a less rigid timeline will attract more interest from developers.
A project in limbo
The Energiø Bornholm project is part of a broader EU initiative supporting 41 cross-border energy projects, with the Bornholm energy island receiving the largest single grant. The funding was allocated by EU Commissioner Dan Jørgensen, who noted in a statement that this is the first time such financial backing has been awarded to a project like Energiø Bornholm.
With political uncertainties in Germany and the Danish government reevaluating its approach to offshore wind auctions, the future of the energy island remains unclear. The coming months will determine whether political and financial hurdles can be overcome to keep Denmark at the forefront of Europe’s renewable energy transition.
