- Denmark plans to launch a technology-neutral tender in 2020 and has published a draft for the same
- It proposes to include wave and hydropower plants along with wind and solar PV as participating technologies
- Government wants to change the support scheme to a CfD based model, compared to a fixed premium on market price as is the current model
The Danish Energy Agency (Energistyrelsen) wants to have wave power and hydropower plants along with wind and solar PV to compete in its technology neutral tender 2020. The agency has included these ideas in a draft document detailing the 2020 tender conditions and is now seeking comments from relevant stakeholders before finalizing it.
The 2020 tech-neutral round will be the country’s third to be followed by a fourth edition in 2021. For both these tenders, the support scheme will change from a fixed premium on the market price, to a contracts for difference (CfD) model where the state accepts a larger share of the long-term risk associated with the development of renewable energy.
These changes follow the Climate Agreement reached by various political parties in June 2020 to continue these auctions for 2 more years, in 2020 and 2021, but using a CfD model. In these auctions, tariffs cannot exceed DKK 0.025 ($0.0038) per kWh and total state support to winners will be capped at DKK 600 million ($92 million). Funds will be reserved for technology neutral tenders in 2022-2024 with similar amounts.
Written comments and questions on the draft conditions can be emailed to DEA by August 26, 2020. The agency will publish comments, questions and answers in September 2020.
The first technology neutral tender concluded in December 2018 fetched an average weighted price of DKK 0.0228 per kWh; in the second edition the prices were lower at DKK 0.0154 per kWh (see 252 MW RE For 2nd Tech Neutral Danish Auction).