- No bids entered for the 3rd technology neutral renewable energy auction in Denmark
- Energistyrelsen said it will interact with relevant industry associations to discuss the tender
- It is part of an ongoing investigation, the agency stated, to assess if technology neutral tenders need to be continued beyond 2021
Danish Energy Agency (Energistyrelsen) has received no bids for its technology neutral renewable energy tender for 2021, prompting the agency to investigate the reason behind the no-show.
Launched in June 2021, the tender was the country’s 3rd technology neutral tender with a budget cap of DKK 1.2 billion. It was to contract 428 MW large scale capacity and bids were being accepted till October 22, 2021 (see Denmark Launches 428 MW Renewable Energy Tender).
The agency said it will now hold talks with relevant trade associations to investigate the results of the tender, but stressed that the process is part of an ‘ongoing investigation’ to ascertain the requirement for technology neutral tender rounds after 2021.
“Besides the knowledge gleaned from previous tender rounds, the analysis will provide a status on the subsidy-free RE-projects in Denmark, provide an overall picture of the expected RE-development towards 2024, investigate the development in costs and revenues of RE-projects, and investigate the ability to secure funding, hedge risk and attract investors to subsidy-free RE-projects,” it stated.
The tender round was open to solar PV, onshore and offshore wind, wave and hydroelectric power plants with winning solar projects to come online within 2 years. Denmark had agreed to reserve funds for further technology tenders in 2022 and 2024.
In the 1st technology neutral auction, solar won 104 MW capacity. In the 2nd auction, the technology secured 83 MW and another 97 MW onshore and solar PV hybrid capacity was also awarded.
While there is no known reason for this disinterest in the tender at this point, one may wonder if it has anything to do with extremely high solar module and shipping prices the world is grappling with currently. And while the developers shun the government tender, subsidy free solar keeps on growing (see Better Energy PPA For 112 GWh Solar Power In Denmark).