The European Commission has given Denmark the green light to provide state aid for an offshore wind farm.
It states the 600MW Kriegers Flak offshore project will help the country cut CO2 emissions in line with EU energy and climate goals, without distorting competition.
In February, Denmark notified the Commission a state support measure consisting of a competitive bidding process for the design, construction, operation and decommissioning of the wind farm.
The support will be granted as a premium on top of the electricity price in the Nord-Pool market.
The tender was carried out last year and the winning bid was DKK0.372/kWh (around €50/MWh) to be paid for a total of 30TWh of production.
In addition, a new interconnector will be established to link the Danish island of Zealand to Germany via the Kriegers Flak offshore wind farm and two German offshore wind farms, Baltic 1 and Baltic 2.
It will allow an increased transfer of electricity between the two nations.