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Denmark to cut PV subsidies

The Danish government will reduce remuneration for photovoltaic plants following strong growth. The current proposal is to be negotiated in the coming weeks.

By the end of 2012, around 50 MW of photovoltaics will have been installed in Denmark.

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The Ministry of Energy has announced it wants to readjust subsidies, due to the high costs in light of rapid photovoltaic development.

Currently, the price of electricity in Denmark is equivalent to around €0.295/kWh, or 2.2 Danish Krone. Of this, approximately €0.215/kWh comprises various taxes, which are not paid for by the photovoltaic plant operators. As such, subsidies equal €0.215/kWh, a ministry spokesperson tells pv magazine.

Furthermore, the ministry has said changes may be made to the current rule, whereby rooftop solar energy generated during the day can be stored in the grid and used, for example, in the evening. Thus, photovoltaic system operators would instead receive €0.215/kWh for the electricity, when they consume it within one hour. Meanwhile, solar energy which is fed into the grid will only receive around €0.174/kWh.

Overall, the duration of the subsidies is planned at 10 years. And, if in the future, photovoltaic plant operators withdraw electricity from the grid, then they would have to pay the full price. The guaranteed payments are also expected to successively decrease  in the coming years, and in 2015, be converted to €0.134/kWh.

The ministers’ proposal will be negotiated on in the coming weeks, continued the spokesperson. They could not, however, say when a decision is expected to be reached. Overall, Denmark is said to have installed 223 MW worth of photovoltaics to date.

Translated by Becky Beetz.