Denmark awards 21.6 MW of PV capacity at very low price

Denmark has announced the results of a pilot auction for solar PV plants, awarding nine projects each at the maximum capacity of 2.4 MW to three project companies, for a total of 21.6 MW of capacity. These winning bids were awarded at a premium of 0.1289 Danish Krone (€0.017) per kilowatt-hour above wholesale prices.

The Danish Energy Agency calculates that this will mean subsidies of €380,000 annually, which is well below the subsidy level of €1.1 million which was anticipated when the solicitation was launched.

The auction comes only a few weeks after the results of Germany’s cross-border auction with Denmark were released, in which 50 MW of projects were awarded in Denmark.

Similar to the German solicitation a portion of the Danish auction was open to projects in Germany. However, given restrictions on the use of agricultural land for PV projects in Germany it would have been very difficult for projects across the border to compete at these low prices, and no bids for projects in Germany were placed.

The Danish Energy Agency says that it anticipates contracts for the projects awarded to be signed before Christmas.

Denmark has the highest portion of wind on its grid of any nation on earth, but PV contributes a lower portion of annual electricity than in Germany or other nations. However, Denmark is pursuing multiple forms of renewable electricity and heating solutions as it works towards a goal of 100% renewable energy in all sectors by 2050.