UPDATE - Denmark stops solar support scheme after applications surge

The Parliament in Denmark on Tuesday discontinued with immediate effect a support scheme for solar installations, after in just a few months it received over 9,000 applications for a combined 4.5 GW.

All applications that have not yet been processed and approved for support will not be eligible for the so-called 60/40 solar scheme, transmission system operator (TSO) Energinet.dk said today. The move does not affect applicants who have already secured the premium power purchase rates.

The 60/40 scheme offers solar power producers a fixed power purchase price of DKK 0.60 (USD 0.094/EUR 0.081) per kWh for 10 years and then DKK 0.40/kWh for another 10 years. This compares to a power price of some DKK 0.18/kWh at present, energy minister Lars Lilleholt said earlier this week, calling for the immediate termination of the programme. The premium for solar power is paid through the Public Service Obligation (PSO), which is included in consumers’ bills.

The surprising level of 4.5 GW under the 60/40 scheme was due to a surge in applications in March and April, Energinet.dk said. Denmark has about 790 MW of installed solar power generation capacity at present and the TSO projects the total may grow to 7.5 GW by 2040, thanks to a rise in residential deployment.

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