The Danish Energy Agency is calling for tenders for the technology-neutral tender in 2021, where solar cell systems, wind turbines, wave energy plants and hydropower plants can compete for support. The deadline for submitting bids is October 22, 2021.
In 2021, the third technology-neutral tender will be held. This time, solar cell plants, onshore wind turbines, open-door offshore wind turbines, wave energy plants and hydropower plants can participate. As agreed with the Climate Agreement for energy and industry from June 2020, the support model has been changed from being a supplement to the market price to being a so-called “Contract for Difference” (CfD) support model, where the state assumes a larger share of the long-term risk associated with the development of renewable energy.
The latest technology-neutral tender was held in 2019, where solar cells and wind turbines competed for the lowest support price, which resulted in a weighted average of the winning price supplements of 1.54 øre / kWh. It was 32% lower than the year before and 16 times lower than the price supplement in the previously applicable support scheme (called the 25-øre), which expired in February 2018.
The forthcoming technology-neutral tender uses a CfD support model, where RE builders can achieve a fixed settlement price of up to 25 øre / kWh for 20 years, and where the total potential support is DKK 1.2 billion (in 2020 prices). RE builders can also choose to bid in the tender with part of a RE system. With this flexibility, both support and electricity price hedging will be better adapted to the needs of the individual project.
As different technologies compete for support in the technology-neutral offer, it is not known in advance how the support will be distributed between solar, wind, wave power and hydropower.
One technology-neutral tender will be held in 2021, which will add up the allocated funds for 2020 and 2021. The technology-neutral tender in 2021 will have a total disbursement ceiling for the state of DKK 1.2 billion. DKK (2020 prices) and a capacity limitation of approx. 428 MW (onshore wind equivalents).
A bid ceiling of 25 øre / kWh has been set. Projects must be long in the project development, and for example have a local plan approval. Projects must be connected to the grid before resp. 2 or 4 years from entering into a contract with the Danish Energy Agency depending on technology. Open-door offshore wind turbines must be connected to the grid within 4 years, and the other technologies within 2 years.
Image: “Offshore Wind Turbines in Thyborøn” by nordic15 is licensed under CC BY 2.0
