Denmark lays groundwork for second tech-neutral auction

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
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

Read Next

May 5, 2021
Europe’s solar industry has lauded the inclusion of a commitment to "re-ignite" Europe's solar manufacturing sector within the European Commission’s refreshed industrial strategy.
PV Tech Premium
May 3, 2021
Companies are purchasing solar, wind, and other forms of renewable energy more than ever before. The power purchase agreement (PPA) market in Europe has grown to a cumulative capacity of over 12GW, with a record 4GW signed in 2020. Corporate climate commitments are opening doors for investment in renewable energy, and continued price declines are convincing companies to sign new contracts. Is the European market ready to fulfil its potential? By Dr. Mercè Labordena, senior policy advisor at SolarPower Europe, and Milena Koot, communications advisor at SolarPower Europe
April 28, 2021
Renewable energy group BayWa r.e. has opened what it claims is its largest PV warehouse in Europe yet in a bid to expand its distribution network in the continent.
April 23, 2021
Despite dozens of net-zero targets being announced and deployment of renewable energy ramping up globally over the past year, just 10% of countries have shown “steady and consistent” progress in their energy transition plans, according to a new report from the World Economic Forum (WEF).
April 22, 2021
Danish solar company Better Energy is expecting to improve its financial performance this year thanks in part to its transition from a project developer to an independent power producer (IPP).
April 14, 2021
While recent solar auctions in Spain and Portugal have made headlines with low prices and high levels of participation, the power purchase agreement market will be key to helping both countries reach their 2030 solar deployment targets, it was suggested during a panel discussion.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021