Denmark's recent auction for wind power licenses in the North Sea failed to attract any bids. The outcome is "a very disappointing result", stated the country's Minister for Energy and Climate Lars Aagard.

As a result, the Danish Energy Agency intends to initiate a dialogue with market participants to identify the reasons for the lack of bids. This is stated in a press release.

Domestic energy giant Ørsted said it did not want to bid because of an unfavorable risk/return ratio, but also because of influencing industry factors such as inflation, interest rates and supply chain bottlenecks.

The Bank of Åland commented on the lack of interest in its morning letter.

"In our view, this reflects the simple fact that it remains difficult to obtain an economically viable calculation without subsidies or guaranteed electricity prices," the bank writes.

It also points out that wind power already has a high penetration in Denmark, making investors highly dependent on export volumes.

"We also note that several of the major oil companies (e.g. Shell and Equinor) are currently revising their renewable energy strategies, which reduces the number of bidders," writes the Bank of Åland, which sees this as negative for Vestas.