For those who don't read Danish, this article follows up on the failure of Denmark's December auction for offshore wind. Back then, I wrote about how the failure of the auction was not entirely surprising because its design left developers exposed to a lot of of risk. https://bsky.app/profile/emildimanchev.bsky.social/post/3lcuiwnt4ns2m
Reposted from
Emil Dimanchev
A cautionary tale unfolded last week as Denmark failed to attract bids for offshore wind. What can we learn from this?
This is a multi-dimensional problem, but the primary lesson I believe is that Denmark wrongly expected developers to take on market risk. 🧵🔌💡1/9
www.reuters.com/sustainabili...
This is a multi-dimensional problem, but the primary lesson I believe is that Denmark wrongly expected developers to take on market risk. 🧵🔌💡1/9
www.reuters.com/sustainabili...
Comments
I argued that Denmark should de-risk wind by auctioning 2-way Contracts for Differences, based on my recent & ongoing work. https://www.dr.dk/nyheder/viden/klima/statsstoette-til-havvind-derfor-ender-regningen-ikke-noedvendigvis-hos-dig