Denmark to allocate around $690 million for mixed wind-solar auctions starting from 2020

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The Danish Ministry of Energy, Utilities and Climate has released a new energy policy, titled “Energy for a green Denmark,” which envisages, among other things, the phasing out of all of the country’s coal power plants and 50% coverage of its energy needs with renewable energies by 2030.

As for the clean energy sources, the Danish government said that it will further promote stronger competition among all technologies, in order to achieve lower power prices for consumers.

The 15 billion DKK (around $2.4 billion) budget calculated for the implementation of the policy, includes 4.2 billion DKK (around $690 million) “to ensure continuous expansion of onshore wind turbines and solar PV among other RES-technologies.”

These funds will be allocated during the period 2020-2024.  An additional 500 million DKK will be allocated to a renewable energy reserve from 2025, the ministry said.

The subsidy system, the government further explained, will be simplified from 35 different types of subsidies to four to six new schemes, while the average level of direct support is expected to decline from approximately 0.22 DKK ($0.035)/kWh to 0.10 DKK ($0.016)/kWh. Only one of the four schemes will include solar. It will conceived a seperate technology-neutral procurement scheme for PV, onshore wind and offshore wind near coasts.

“Given the uncertain nature of technology and price developments between now and 2030, we  must avoid planning the precise details of energy policy this far into the future in areas where such planning would be inexpedient economically or otherwise,” the Danish government said in the document.

The Danish Energy Agency released a draft plan for public consultation for joint wind and solar power auctions in late November. If the proposal is approved by parliament, the auctions – the first of their kind in the country – are likely to be held between 2018 and 2019. The plan for the creation of joint wind and solar auctions was proposed by the government last summer.

According to the latest statistics available, Denmark’s cumulative installed PV capacity reached 854.8 MW as of March 3, 2017.