Denmark preps tender scheme for PV projects up to 1 MW

The Danish Energy Agency (Energistyrelsen) is planning to hold a tender of price premiums for electricity from solar PV with an installed capacity of less than 1 MW in 2018.

The tender scheme, which is now under public consultation, will have a total budget of 105 million DKK (around $17.4 million).

According to the draft document showing the conditions for the tender procedure, the competition will be open to projects where work has not yet started, while solar PV installations grid-connected in self-consumption systems will be excluded.

The premium tariff granted through the tender will have a validity of 20 years. Price premiums, however, will not be granted for production during hours when the spot price for electricity is not positive, the agency stressed in the document.

Winning developers will have to complete the project within two years after signing the PPA. “A contract on price premiums will be awarded to one or more tenderers that submit a tender with the lowest price premium in accordance with the price premium offered in each of the accepted tenders, and which can be contained within the budget,” the agency explains in the document.

The 105 million DKK tender was originally scheduled for 2017. In October, Denmark’s Ministry of Energy, Utilities and Climate said that the scheme was capped at 35 MW. At the time, the Ministry of Energy said that selected projects would be entitled to receive a tariff ranging from 0.66 DKK ($0.10) per kWh, to 0.77 DKK ($0.12) per kWh

In September of last year, the Danish government also announced a plan to allow large-scale solar and onshore wind projects to compete on equal terms in tender auctions.

Denmark’s cumulative installed PV capacity reached 854.8 MW as of March 3, 2017, according to the latest statistics from Danish energy operator,