Denmark awards 19 MW in tender for solar up to 1 MW

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The Danish Energy Agency has announced the result of the tender for PV projects up to 1 MW in size, which was launched in mid-September.

The government-run agency said it awarded 19 MW of capacity to eight develoers for 19 projects. Overall, the agency received 18 bids from 11 bidders for 21 projects totaling 21.1 MW.

Final prices offered by selected bidders range between DKK 0.1000 ($0.15) to DKK 0.1490 ($0.22) per kWh, while the final weighted average price was DKK 0.1297 ($0.19 per kWh). The bid cap for the competition was set at DKK 0.15 per kWh.

Only one developer – Middelfart Sustain ApS – offered DKK 0.1000 per kWh, while BE 103 IVS offered DKK 0.1244 per kWh for its seven projects. A price of DKK 0.1244 per kWh was also offered by Better Energy Frederikslund Estate ApS, Better Energy Randers Estate ApS, and Solpark Voer Holbæk Estate IVS, which were awarded two projects each.

LPF SunCo ApS, meanwhile, offered a price of DKK 0.1490 per kWh for a 5 MW project, which it will build across five municipalities.

The budget for the tender was DKK 107 million ($16.1 million). The agency said it does not expect to sign contracts with the developers, which may be worth DKK 62.2 million.

The agency had previously clarified that selected projects may not be connected to the grid in a consumer installation, and must be connected within two years after contract signing. Another requirement is that projects must be at a late development stage before participating

Selected PV schemes will be granted a 20-year premium tariff. Price premiums, however, will not be granted for production during hours when the spot price for electricity is negative, the agency announced in March.

The tender is the first of two planned this fall, the agency said. The second is a mixed wind-solar auction recently launched by the Danish authorities.