Denmark Invites Bids for 3rd Technology-neutral Tender

• The Danish Energy Agency (DEA) has invited bids for a technology-neutral tender, where solar cell systems, wind turbines, wave energy plants as well as hydropower plants can contend for support.
• This is the third such tender launched by Denmark and will certainly back about 428 MW of renewable resource projects using DKK 1.2 billion ($189.5 million) in state funds.
• The due date to send propositions using the tender site is October 22, 2021.

The Danish Energy Agency (DEA) has invited bids for a technology-neutral tender, where solar cell systems, wind turbines, wave energy plants and hydropower plants can contend for assistance. This is the 3rd such tender launched by Denmark and also will certainly back about 428 MW of renewable energy projects using DKK 1.2 billion ($189.5 million) in state funds.

The due date to submit proposals by means of the tender portal is October 22, 2021.

The upcoming technology-neutral tender will make use of a contract for difference (CfD) assistance design, as well as the bidding cost is topped at DKK 0.25 ($0.038) per kWh, with assistance to be granted for two decades. The complete possible assistance is DKK 1.2 billion (in 2020 rates) ($0.19 billion).

Selected projects need to be appointed within two or four years after a contract with DEA has actually been signed, depending the modern technology. Developers can additionally select to bid in the tender with part of a renewable resource system.

As various technologies compete for support in the technology-neutral offer, it is not known ahead of time just how the assistance will be dispersed in between solar, wind, wave power as well as hydropower.

The support version was altered from being a supplement to the marketplace rate to being a contract for distinction (CfD) following the Climate Agreement for energy and market in June 2020. Under the CfD model, the state takes duty for a larger share of the long-term threat associated with the advancement of renewable energy.

The last technology-neutral tender was wrapped up in December 2019, where solar cells as well as wind turbines contended for the lowest support cost. It brought in 271 MW of onshore wind as well as solar projects, which caused the heavy standard of the winning price supplements going as low as DKK 0.0154 per kWh. It was 32% lower than the year before as well as 16 times lower than the cost supplement in the formerly appropriate support scheme (called the 25-øre), which ran out in February 2018.

The current 3rd tender will enable solar photovoltaic, onshore wind, open-door offshore wind, wave power as well as hydroelectric technologies to get involved. It will certainly be the only tender planned for 2021. The DEA has said that funds have actually been reserved for more technology-neutral tenders in 2022-2024.

According to the International Energy Agency (IEA), Denmark's net-zero dedications as well as advancements with renewables make it a leader in energy change. The country aims to reduce GHG exhausts by 70% from 1990 degrees by 2030 as well as for renewables to cover a minimum of half of the nation's total energy consumption by 2030.