Denmark’s 428-MW technology-neutral renewables tender draws no bids

Denmark received no bids in its third technology neutral tender that sought to award up to DKK 1.2 billion (USD 187.4m/EUR 161.3m) of support to some 428 MW of renewable energy projects, the Danish Energy Agency said on Wednesday.

The tender opened in August and had a bid deadline of October 22. Bids were awaited from solar photovoltaic (PV), onshore wind, open-door offshore wind, wave power and hydroelectric projects.

As a technology neutral tender was not held in 2020, the 2021 round combined the allocated funds for 2020 and 2021.

The 2021 tender followed a shift in the support model to a contract for difference (CfD) mechanism from a scheme that uses a fixed-price supplement on top of the electricity market price. It used a two-sided CfD-model with 20-year contracts and price premium that can vary from year to year, but is fixed within each year. Bids were capped at DKK 0.25 per kWh.

The Danish Energy Agency said it is assessing the results as part of an analysis of the need for technology-neutral tenders after 2021. The analysis will also provide a status on the subsidy-free renewable energy projects in Denmark and an overall picture of the expected renewable energy development towards 2024, according to the announcement.

(DKK 1 = USD 0.156/EUR 0.134)

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