European Commission Supports Denmark’s Renewables

The European Commission has approved three schemes to support electricity production from wind and solar power in Denmark in 2018 and 2019.

The Danish authorities will implement a multi-technology tender scheme for offshore and onshore wind turbines and solar installations, with a budget of DKK 842 million (EUR 112 million).

The beneficiaries of the aid will be selected through two tenders organized this and next year, with the different technologies competing with each other. The selected installations will offer electricity on the market and receive support in the form of a premium on top of the market price.

Denmark has also dedicated an aid scheme for onshore wind test and demonstration projects outside the two national test centers for large wind turbines, as well as a transitional aid scheme for onshore wind.

The aid for the schemes, financed from the state budget, will be granted for a period of 20 years starting from the connection to the grid.

According to the European Commission, the three measures arose due to the country’s goal of supplying 50% of its energy consumption from renewable energy sources by 2030 and becoming independent from fossil fuels by 2050.

The measures are expected to help Denmark boost the share of electricity produced from renewable energy sources, while any distortion of competition caused by the state support is minimized.

The schemes were assessed under EU State aid rules, in particular the Commission’s 2014 Guidelines on State Aid for Environmental Protection and Energy, which found that they will encourage the development of offshore and onshore wind and solar technologies, in line with the requirements of the Guidelines.