The Danish Energy Agency (Energistyrelsen) has announced a new technology-neutral, renewable energy tender, the Northern European country’s 3rd, looking to contract 428 MW large scale capacity for a total state financial support of DKK 1.2 billion ($192 million).
Eligible technologies for this tender round include solar PV, onshore wind, offshore wind, wave energy and hydropower plants. The agency said bids will be accepted for eligible projects between August 23, 2021 and October 22, 2021.
Detailed tender terms are available on the Danish Energy Agency’s website.
Technology neutral renewable energy tenders in Denmark are being held since 2018. The government has reserved funds for more such tenders to be launched between 2022 and 2024, according to the Ministry of Climate, Energy and Supply.
For projects awarded in the 2021 round, the government will provide financial support under a contracts for difference (CFD) model for 20 years. Under this model, the winner gets certainty for investment in the long run as the state accepts a larger share of long-term risk associated with the development of renewable energy, the agency shared while seeking consultation for the 2020 tech-neutral tender (see Denmark: Feedback For 2020 Tech-Neutral Tender).
According to the agency, the 2021 technology-neutral tender will combine allocated funds for 2020 and 2021.
In the 1st tech-neutral round concluded in December 2018, the agency awarded 165 MW to wind and 104 MW to solar PV technologies with DKK 2.28 øre per kWh (see 104 MW PV Awarded In Danish Tech-Neutral Auction).
In December 2019, it announced winners of the 2nd tech-neutral auction selecting 83 MW solar PV capacity, 97 MW of onshore wind and solar PV hybrid power, and 72 MW onshore wind power projects (see 252 MW RE For 2nd Tech Neutral Danish Auction).