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EC approves three support measures for renewable energy in Denmark

Staff Writer |
The European Commission (EC) has approved under EU State aid rules three schemes to support electricity production from wind and solar in Denmark in 2018 and 2019.

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Denmark has a goal of supplying 50% of its energy consumption from renewable energy sources by 2030 and to become independent from fossil fuels by 2050. In line with this goal, the Danish authorities will implement three measures supporting renewable energy:

- A multi-technology tender scheme for onshore and offshore wind turbines and solar installations, with a budget of DKK 842 million (€112 million).

The beneficiaries of the aid will be selected through two tenders organised in 2018 and 2019, with the different technologies competing with each other.

The selected installations will offer their electricity on the market and receive support in the form of a premium on top of the market price (top-up payment).

- An aid scheme for onshore wind for test and demonstration projects outside the two national test centres for large wind turbines, with an expected budget of DKK 200 million (€27 million), and a transitional aid scheme for onshore wind, with a budget of DKK 40 million (€5 million).

The aid for the three schemes will be granted for a period of 20 years from the time of the connection to the grid. The renewable support schemes are financed from the State budget.

The Commission assessed all three schemes under EU State aid rules, in particular the Commission's 2014 Guidelines on State Aid for Environmental Protection and Energy.

It found that the three Danish schemes will encourage the development of offshore and onshore wind and solar technologies, in line with the requirements of the Guidelines.

On this basis, the Commission concluded that the measures will help Denmark boost the share of electricity produced from renewable energy sources, in line with the environmental objectives of the EU, while any distortion of competition caused by the state support is minimised.


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