Tariff support for Danish renewable projects is to drop substantially in the second quarter of the year, according to the Danish Energy Agency.
The tariff, known as the public service obligation (PSO), for the three months to June is set at 2.1 ore per kilowatt-hour, down from 6.2 ore/kWh in the first quarter of 2019, DEA said.
In the second quarter of 2018, the PSO was even higher at 14.7 ore/kWh.
The latest tariff level is based on a on a forward price of Dkr328 a megawatt-hour in eastern Denmark and Dkr320/MWh in western Denmark – lower than the previous quarter but higher compared with the same period a year ago.
Higher electricity prices are impacting the PSO level because project operators need less financial support.
Wind and biomass production is typically lower in the second quarter and this also has a downward impact on the level of the tariff.