Today, the Danish Energy Agency has opened this year’s a tendering scheme concerning a price premium for electricity from onshore wind, solar PV and open-door offshore wind. The deadline for bids is 27 November 2019.
The first technology neutral tender held in 2018, in which solar and wind energy competed with each other for the lowest price premium, was an innovation that has ensured an expansion of renewable energy in Denmark at historically low prices.
The weighted average price premium of the winning bids was 2.27 øre per kWh or approx. 0.31 Eurocent per kWh. A total of 6 contracts were awarded for 3 onshore wind projects and 3 solar PV projects with a total capacity of approx. 200 MW onshore wind turbines equivalents.
DKK 258 million in this year’s tender
DKK 258 million (2019 prices) has been allocated for the technology-neutral offering this year. There is a bid cap of 6.00 øre per kWh.
The price premium is given as a fixed price supplement on top of the electricity price for 20 years. Because it is technology neutral tendering rounds it is not known up front which technology will be awarded price premium contracts. Bids must be given in Danish, but the tender material is also available in an English translation.
Please find the conditions for the tender on the tender portal.
Facts on the tender:
- DKK 258 million (2019 prices) has been allocated for the tender in 2019. DKK 254 million (2018 prices) was offered in 2018. The support is given as a fixed price supplement on top of the electricity price for 20 years.
- There is a bid cap of 6,00 øre per kWh. Projects cannot be connected to the grid in a consumer installation. There is a late bidding requirement, meaning that projects must be at a late development stage before participating in the tender. Projects must be connected to the grid within two or four years after contract signing, depending on whether it is an installation on land or the sea.
- The tender is approved by the European Commission according to the guidelines on state aid for environmental protection and energy 2014-2020.
- On 26 September 2017, the former Government and the Danish People's Party entered into an agreement to allow solar cells and wind turbines to bid for technology-neutral tenders in 2018 and 2019, in which competition is provided to deliver the most green power for the money.
- Read more about the technology neutral tender here: https://ens.dk/en/our-services/current-tenders/tender-scheme-wind-and-solar-pv-2018-2019.
Sobia Waheed, +45 3392 6636, firstname.lastname@example.org
Emil Axelsen,, +45 3392 7701, email@example.com
The Danish Energy Agency is responsible for tasks linked to energy production, supply and consumption, as well as Danish efforts to reduce carbon emissions. The Agency is also responsible for supporting the economical optimisation of utilities that in addition to energy includes water, waste and telecommunication.
We are also responsible for user conditions, supply obligation and telecommunication statistics, as well as water supply and waste management.
The Danish Energy Agency was established in 1976, and is an agency under the Ministry of Climate, Energy and Utilities.