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Reported by The Danish Energy Agency on 3 December 2018

Technology neutral tender 2018 determined

The technology neutral tender round for 2018 has now been determined and has resulted in a record low level of aid to onshore wind turbines and solar PV. The budget for the tender round was DKK 254 million (2018 prices).

(Courtesy of pixabay.com)

The technology neutral tender, which was open for bids from 27 September 2018 with a deadline for bids 26 November 2018 has now been determined. The Danish Energy Agency has received in total 17 bids with projects of approx. 260 MW onshore wind turbines and approx. 280 MW solar PV installations. In total it is expected that 6 contracts will be signed including 3 contracts with approx. 165 MW onshore turbines and 3 contracts with approx. 104 MW solar PV installations. This corresponds to approx. 200 MW onshore wind equivalents or the electricity consumption of approx. 160,000 Danish households. The weighted average price premium of the winning bids is 2.28 øre per kWh or approx. 0.31 Eurocent per kWh.

Wind and solar PV installations covered by the winning bids must be connected to the grid within two years from contract signing and the aid period is 20 years. The price premium is granted as pay-as-bid meaning that each winning tenderers will receive the price premium that was including in their bid on top of the market price for electricity.

The Danish government and the Danish People’s Party agreed on 26 September 2017 to establish a tender based aid scheme for wind turbines and solar PV installations in 2018 and 2019. This was among other things due to that the previous aid scheme for wind turbines expired on 21 February 2018 and no aid scheme was open for solar PV installations. There was a bid cap of 13 øre per kWh in the 2018 tender round.

Find information regarding the winners in the factsheet at the homepage of the Danish Energy Agency.

References

[1]

The Danish Energy Agency. Press release - Technology neutral tender 2018 determined. URL: https://en-press.ens.dk/news/technology-neutral-tender-2018-determined-336766. [Date Accessed: 03/12/2018].

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