The Danish Energy Agency has launched today a technology-neutral tender for the deployment of large-scale power plants based on solar PV, both onshore and offshore wind, wave energy, and hydropower.
Interested developers will have time until October 22 to submit their bids and final results will be announced by the end of the year.
The agency allocated DKK 1.2 billion ($192.6 million) for the procurement exercise, after spending DKK258 million in the previous auction of the same kind. These funds should be enough to allocate around 429 MW of renewable energy capacity.
Selected projects will be eligible for a feed-in premium – related to the wholesale electricity price – for 20 years.
In the first auction of the kind, held in 2018, 20-year power purchase agreements were awarded to three solar plants with a combined generation capacity of 104 MW and three wind facilities with 165 MW of capacity. The Danish Energy Agency received 17 bids in that procurement round – for 280 MW worth of solar capacity and 260 MW of wind. The weighted average price premium of the winning bids was DKK0.0227/kWh.
In the second exercise, held in 2019, the agency allocated 252 MW of clean energy generation capacity, of which 83 MW was solar and 93 MW solar-wind hybrid facilities which included 34.1 MW of PV capacity. The weighted average price premium, which is paid for the power generated by the projects on top of spot market prices, was DKK0.0154/kWh.
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