Denmark opens 428-MW technology-neutral renewables tender

Denmark on Monday launched its third technology-neutral tender that will award up to DKK 1.2 billion (USD 189.5m/EUR 161.4m) in state funds to back roughly 428 MW of renewable energy projects.

The round will enable the competition of solar photovoltaic (PV), onshore wind, open-door offshore wind, wave power and hydroelectric technologies, the Danish Energy Agency said. The agency will await proposals by October 22, 2021.

The bidding price is capped at DKK 0.25 (USD 0.038/EUR 0.034) per kWh, with support to be awarded for 20 years. It can be either fixed or vary each calendar year.

Selected projects should be commissioned within two or four years after a contract with DEA has been signed, depending the technology.

Last summer, Denmark agreed to proceed with technology-neutral tenders in 2020 and 2021 but shifted the support model to a contract for difference (CfD) mechanism. This came to substitute a scheme that uses a fixed-price supplement on top of the electricity market price.

This third technology-neutral tender will be the only one planned for 2021.

The country’s second technology-neutral tender, which was concluded in December 2019, attracted 271 MW of onshore wind and solar projects, with the weighted average price premium of the winning bids reaching as low as DKK 0.0154 per kWh.

DEA noted funds have been set aside for more technology-neutral tenders in 2022-2024.

(DKK 1.0 = USD 0.158/EUR 0.134)

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