Denmark lays groundwork for second tech-neutral auction

Facebook
Twitter
LinkedIn
Reddit
Email
Danish PV capacity grew between 2017 (906MW) and 2018 (998MW), according to IRENA (Credit: Pixabay)

Solar is poised to face wind again at Denmark’s second of two technology-neutral auctions, with the terms open for consultation until 19 June.

The Danish Energy Agency said this week a tender will be held after the summer, offering solar and wind winners surcharge subsidies through 20-year PPA contracts.

The upcoming auction, featuring a bid ceiling of DKK 0.13/kWh (US$0.019/kWh), is reserved for projects yet to initiate construction.

The auction documents do not yet shed light on how much capacity will be tendered.

When it created the two-year scheme in 2017, the government’s plan was to contract a joint 190MW through both the 2018 and 2019 auctions. Held in December 2018, the exercise alone ended up awarding 269MW at average surcharges of DKK 0.0228/kWh (US$ 0.0034/kWh), however.

According to IRENA, Denmark was as of late 2018 home to 998MW of solar PV capacity. While an improvement on the 2016 (851MW) and 2017 (906MW) stats, the PV figure remains far shy of the 5.7GW recorded for on- and offshore wind last year.

Both industries reaped three contracts at the first technologically neutral auction. However, the 104MW awarded to the three solar winners – projects of 60MW, 30MW and 11.5MW capacity – fell below the 165MW hauled in by the wind trio.

In parallel to its joint tenders, Denmark has worked in recent years to arrange cross-border and PV-specific auctions. Held last November, a US$16.1 million tender for PV installations of up to 1MW awarded 19MW in contracts to 15 winning bids, with prices sitting at a US$0.15-0.22 per kW range.

See here for the results of Denmark's first tech-neutral auction, plus the terms of the upcoming, second tender

29 November 2022
PV ModuleTech EMEA in Madrid on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.

Read Next

October 5, 2022
The rise in solar and wind generation met over three-quarters of the global electricity demand growth in the first half of 2022, according to a report from think tank Ember.
October 4, 2022
The Australian state of New South Wales (NSW) has opened its first tender for renewable energy and long duration storage.
September 29, 2022
Italy has allocated 413MW of solar PV and wind capacity in its ninth renewables auction, according to figures from energy management agency GSE.
PV Tech Premium
September 27, 2022
Europe must build out its own large-scale, vertically integrated solar PV manufacturing base as a means to ensure its clean energy transition.
September 22, 2022
Tech major Amazon has expanded its renewables portfolio globally with 71 new projects with a total capacity of 2.7GW.
September 21, 2022
Under the REPowerEU scenario to install 750GWdc of solar across the European Union by 2030, the bloc will require 1 million solar workers, double the numbers from 2021.

Subscribe to Newsletter

Upcoming Events

On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)
Solar Media Events
November 29, 2022
Malaga, Spain