Costs for Energy Island Bornholm project reach 695 million kroner despite no turbines built

Despite no offshore wind turbines being erected as part of the Energy Island Bornholm project, it has already incurred costs of 695 million kroner. This information was shared by Denmark’s Climate, Energy, and Utilities Minister Lars Aagaard in response to the Conservative Party’s energy spokesperson, Dina Raabjerg.

The substantial expenditure primarily covered environmental and seabed investigations, conducted by Energinet on behalf of the Danish Energy Agency, which will later allocate areas to offshore wind companies. Hanne Storm Edlefsen, Director for Megaprojects at Energinet, expressed that the costs align with expectations, noting that it is Denmark’s largest project of its kind, thus justifying the high figures. She emphasized the project’s long-term value.

Once the project becomes operational, offshore wind developers will be responsible for reimbursing the costs incurred during the preliminary studies. Currently, there remains a political majority in favor of Energy Island Bornholm, although the project’s financial framework continues to be debated, leading to uncertainty about its future.

Economic advisors have warned that the project could end up costing twice as much as anticipated. According to their estimates, the project’s potential losses to the economy could range from 4 to 17 billion kroner. Edlefsen acknowledged that if the project were ultimately abandoned, the 695 million kroner spent would be wasted.

So far, a political majority has allocated 176.6 billion kroner for Energy Island Bornholm. The project aims to serve as a green energy hub in the Baltic Sea by 2030, including the establishment of an offshore wind farm that could supply electricity to 3.3 million households in Denmark, Germany, and Poland.