This year, Denmark chairs the North Seas Energy Cooperation (NSEC) – the association of nine countries and the European Commission, which plans to build at least 300 GW of offshore wind farms in the North Sea by 2050. The Danish industry association Green Power Denmark sees a clear vision for the North Sea as a green hub of Europe and advises the NSEC and the new European Commission to focus in their upcoming work program on competitive financing options, standardized markets for wind energy and greater cooperation in the field of physical security of energy infrastructure.
(photo: Vattenfall)
The North Seas Energy Cooperation (NSEC)
The North Seas Cooperation (NSEC) is a collaboration started in 2016 in the field of energy and infrastructure development in the North Sea. Participating countries are: Belgium, the Netherlands, Luxembourg, Ireland, France, Norway, Sweden, Germany and Denmark with the participation of the European Commission.
In the past year, the Netherlands chaired NSEC, together with the European Commission. The United Kingdom was present as a guest.
During the conference in The Hague in November 2023, Minister Jetten presented the Action Agenda to the new NSEC chairman Denmark.
2023
Last year, during the Dutch co-chairmanship of NSEC, the North Sea countries and the European Commission expressed the joint ambition that the North Sea will become the largest source of sustainable energy in Europe. The ambition was laid down in the 'Action Agenda'.
The Netherlands, Belgium, France, Germany, Ireland, Luxembourg, Denmark, Norway and the United Kingdom signed a declaration to guarantee at least 120 GW offshore wind in 2030 and at least 300 GW offshore wind in 2050. As part of this ambition, the NSEC countries are launching a joint tender planning. The tender planning translates the broad ambitions of the NSEC countries into concrete progress, with approximately 15 GW of auctions every year.
The how question
Denmark has made an energetic start. In the run-up to the meetings of the North Sea countries, a WindEurope workshop took place with key players in the European wind turbine industry on how Europe can strengthen and support its strong position in the development, production and installation of wind technology.
The Deputy CEO of Green Power Denmark, the leading Danish renewable energy industry association, summarizes the challenges as follows:
“We must demand a common European industrial policy that can compete with the competition from China and the United States. In particular, companies in the supply chain are increasingly facing competition from state-subsidized companies. The Net-Zero Industry Act is a step in the right direction, but requires a common approach in all Member States if we want to guarantee the best possible conditions for the industry at European level."
At the same time, Hylleberg emphasizes the need for pan-European financing solutions when flexible state aid rules expire at the end of 2025.
In his view, one of the most important tasks of the European Commission is to ensure that the EU avoids an internal state aid race in which the countries with the greatest economic strength win.
Harmonization of European tenders
The implementation of the Net Zero Industry Act will be a key issue for the wind turbine industry by 2025, according to Green Power Denmark, as it will determine which non-price criteria will apply to renewable energy tenders and auctions in Europe.
The point of attention is the implementation. This will impact offshore wind projects in the North Sea, as the Member States sharing the area may have very different criteria and requirements for tenders and auctions in the area. In the upcoming NZIA legislation, offshore wind projects may be subject to, or even completely excluded from, provisions, which could lead to unequal requirements for the construction of future wind farms in the North Sea region.
That is why the Danish trade association recommends that the NSEC countries and the new European Commission work towards more standardization and transparency across national borders and concession areas.
“A fragmented market with special rules for individual member states means more costs and administrative burdens for the industry, which must navigate and comply with many more different requirements. It is therefore important that the implementation of NZIA pays attention to ensuring a standardized approach to qualitative criteria that apply to all markets and member states. This makes the construction of wind farms cheaper, more efficient and more transparent for the industry,” says Jan Hylleberg.
Safety
Finally, security is an agenda that must be taken more into account in the cooperation of the North Sea countries. Green Power Denmark points out the need to ensure a more intensive dialogue with the authorities in the defense sector.
According to the trade association, EU member states must impose specific requirements on how emergency aid must respond if companies encounter threats at sea, on land or in the air. And in addition, the Investment Screening Act must ensure that hostile states do not gain control over critical infrastructure in Europe.
Important task
The vision is clear for Denmark: the North Sea will become one of Europe's green hubs for offshore wind. In practice, the expansion of wind farms still needs to gain momentum so that Europe can realize its ambitions for a climate-neutral energy supply. Denmark sees an important task for the Danish Presidency in this regard.
NSEC and the new European Commission should focus in their upcoming work program on competitive financing options, standardized markets for wind energy and greater cooperation on the physical security of energy infrastructure.
Green Power Denmark hopes that the Danish Presidency will include industry perspectives in the work program for the next three years. Not only to provide direction for the expansion of wind energy in the North Sea, but also to inspire the future European Commission to give priority to the area in the next five-year working period.
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