The Danish Energy Agency is today calling for bids for its technology-neutral tender in 2021, where solar cell systems, wind turbines, wave energy plants and hydropower plants can compete for support.
In this third round solar cell plants, onshore wind turbines, open-door offshore wind turbines, wave energy plants and hydropower plants can participate.
As agreed with the Climate Agreement for energy and industry from June 2020, the support model has been changed from being a supplement to the market price to being a contract for difference (CfD), where the state assumes a larger share of the long-term risk associated with the development of renewable energy.
The last technology-neutral tender was held in 2019, where solar cells and wind turbines competed for the lowest support price, which resulted in a weighted average of the winning price supplements of 1.54øre/kWh.
It was 32% lower than the year before and 16 times lower than the price supplement in the previously applicable support scheme (called the 25-øre), which expired in February 2018.
The forthcoming technology-neutral tender uses a CfD support model, where developers can achieve a fixed settlement price of up to 25 øre/kWh for 20 years, and where the total potential support is DKK1.2bn (in 2020 prices) (€0.16bn).
Developers can also choose to bid in the tender with part of a renewable energy system.
With this flexibility, both support and electricity price hedging will be better adapted to the needs of the individual project.
As different technologies compete for support in the technology-neutral offer, it is not known in advance how the support will be distributed between solar, wind, wave power and hydropower.
Tenders must be submitted via the tender portal no later than 22 October 2021.