Denmark returns without success in third round of renewable energy tenders
November 04, 2021
The Danish Energy Agency announced yesterday that in the technology-neutral tender launched at the end of June, the deployment of large-scale power plants based on solar photovoltaic, onshore and offshore wind, wave energy and hydropower has not received any bids.
The agency said it is preparing to hold talks with the renewable energy industry to analyze the reasons for the disappointing bidding results and assess whether more such bids should be held from next year. The agency said in a statement, "The analysis will include previous bidding experience and will provide the overall status of Denmark's unsubsidized renewable energy projects. We can also see the overall situation of the expected growth of renewable energy by 2024. ."
A spokesperson for the agency told Photovoltaics, “As part of the Danish climate agreement that began in 2020, we have reserved funds for the technology-neutral tender for 2022-2024. However, as the climate agreement Reached, the parties also agreed to analyze the need for technology-neutral bidding after 2021. "The national budget for renewable energy auctions from 2020 to 2024 is 4.2 billion Danish kroner (US$655 million).
The agency has allocated 1.2 billion Danish kroner (US$187 million) for procurement activities, which is considered sufficient to allocate approximately 429 MW of installed renewable energy capacity. The selected projects will be eligible for a 20-year long-term protective electricity price discount linked to wholesale electricity prices. In the first round of such auctions held in 2018, 20-year power purchase agreements were awarded to three solar power plants with a total installed capacity of 104 MW and three wind facilities with a total capacity of 165 MW. The Danish Energy Agency received a total of 17 bids in this round of procurement, including a total of 280 MW of solar energy and 260 MW of wind energy. The weighted average electricity price of the winning project is DKK 0.0227 (US$0.0035) per kWh. In the second round of tenders held in 2019, the agency allocated 252 MW of clean energy power generation capacity, of which 83 MW is solar and 93 MW is a solar-wind hybrid facility, which contains 34.1 MW of photovoltaic power generation. The weighted average price for this round, that is, the premium paid for the electricity generated by the project on the basis of the spot market price is 0.0154 Danish kroner ($0.0024) per kWh. Currently, there are several unsubsidized solar projects under development in this Scandinavian country. BetterEnergy has built a 50 MW solar project in Denmark under a long-term power purchase agreement to provide electricity to the Apple data center in Viborg. In addition, Danish clothing company Bestseller announced in 2019 that it will cooperate with independent power generator BetterEnergy to build a 125 MW solar facility as a source of power for its operations.
There are other unsubsidized solar installations under development in this Scandinavian country, including the 400 MW solar project near Nissum Fjord, the 500 MW installation agreed by Encavis and Greengo in May, and the 200 MW photovoltaic power generation in Holstebro. stand.