The possible introduction of concession payments for developers of future Danish offshore wind farms would make the green transition more expensive than is necessary and be “detrimental” to the industry, according to new research for the trade groups Dansk Energi and Wind Denmark.
The analysis by Copenhagen Economics concluded that the current Contract for Difference supply model for Danish offshore wind will be the most efficient, but any introduction of concession payments or renting the seabed would be more costly for consumers.
It suggested that the extra bill for Danish electricity consumers would total Dkr400m (€54m) to Dkr450m, if a concession payment of Dkr0.5m per megawatt was charged each year.
Dansk Energi renewable energy manager Kristine van het Erve Grunnet said: “It will be unhealthy and expensive for the green transition, for investor security and for electricity consumers if politicians change horses in the ford and introduce a new payment model to set up wind turbines at sea.
“We must stick to the current, well-known CfD model, which the analysis clearly shows provides the most green power for the money.”
Wind Denmark chief executive Jan Hylleberg said the analysis shows that concession prices would be “detrimental” to the development of wind energy in Denmark.