The Danish Green Investment Fund has provided €16 million in financing to Better Energy for two PV parks, totaling 32 MW.
The first, a 24.75 MW system in Vollerup, is being built across an area of 33 hectares, while the second, a 7 MW system, is being installed in Nees. Both are set to be grid connected before the year end.
Last year, the fund provided €33 million in financing to EPC Better Energy for four projects located in Nees totaling 51 MW, which form Denmark’s third largest solar park.
In December 2016, the company secured all of the 50 MW of awarded capacity in the Denmark-Germany cross-border auction, for what it says is a “European record-low premium of €1.72/MWh over the wholesale price of electricity.”
“The low premium has proven even more beneficial against the rising wholesale prices of the past couple of years. This new green energy capacity will now come to life in Vollerup and Nees, making them the lowest subsidised parks in Denmark to date. Both projects represent the next step in the journey to build without subsidies,” said Better Energy in a statement released today.
In addition to acting as EPC, Better Energy also sells energy through private PPAs or directly on the spot market.
Denmark’s renewable transition
In March, the Danish Energy Agency (Energistyrelsen) said it was 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 budget allocated was DKK 105 million (around US$17.4 million).
It was eventually issued last month, with around 35 MW of PV capacity set to be assigned under a total budget of DKK 107 million ($16.7 million).
Meanwhile, this April, the Danish Ministry of Energy, Utilities and Climate 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.
The DKK 15 billion (around US$2.4 billion) budget calculated for the implementation of the policy, includes DKK 4.2 billion “to ensure continuous expansion of onshore wind turbines and solar PV among other RES-technologies.”
The funds are set to be allocated during the period 2020-2024. An additional DKK 500 million is expected to be allocated to a renewable energy reserve from 2025, the ministry said.
The European Commission approved the support scheme in August, and at the end of September, Danish Energy Agency, Energystyrelsen, issued a mixed tender for utility-scale wind and solar projects. Interested developers can now submit their project proposals on a specific portal until November 26, 2018.
This article was amended on 04.10.2018 at 14.05 to remove reference to unsubsidized solar. Apologies for the error.