Sweden's Vattenfall has won contracts to build two offshore wind farms in Denmark's North Sea and Kattegat, the Danish Energy Agency said in a statement on Tuesday.
The wind farms are due to be completed by 2032 and will be able to supply electricity equivalent to the power consumption of at least 1.8 million Danish and European households, the agency added.
The North Sea Mid wind farm will have a capacity of one gigawatt (GW) while the capacity at Hesselo will be 0.8 GW, Denmark has said.
The tenders offered two-sided contracts for difference (CFD) where the state guarantees offshore wind producers a fixed price for their electricity after a previous subsidy-free round had failed, underscoring the sector's continued reliance on taxpayer-backed support to remain commercially viable.
North Sea Mid received two bids and Vattenfall won with an offer of 504 Danish crowns (€67.43) per megawatt hour (MWh).
Hesselo attracted five bids, and Vattenfall's winning offer come in at 542 crowns/MWh, the agency said.
"Projects like this demonstrate how we are scaling offshore wind while maintaining a strong focus on affordability and long-term value," David Flood, Vattenfall's head of offshore wind, said in a statement.
Vattenfall already operates five offshore wind farms in Denmark, generating around 6.5 terawatt hours (TWh) of electricity annually, enough to power approximately 1.5 million homes, the company said.
(Reporting by Terje Solsvik, editing by Nora Buli and Louise Heavens)