Tenders (Tender scheme pilot project mills)

Updated: 04.01.2019

Author: Karl Wikberg

Denmark is a leading country for the development of renewable energies and therefore, in order to retain a high interest for companies to develop the wind industry, the Danish Government has allocated state budget towards the support of pilot wind mill development. The support is given in the form of tenders, and are on a first come first serve principal.

Eligible technologies and support requirements

A special scheme to support the construction of pilot mills in Denmark. State has allocated DKK 150 million (approx. € 20 million) for the support of pilot windmills in the period 2018-2019. The Funds can be sought by the first come first serve principle. (Political Agreement)

Wind energy

Only pilot wind mills are eligible  (Political Agreement)

Tender characteristics

Pre-qualification criteria

A prototype certificate is required when setting up mills in the national test centers.

Tender constraints

State has allocated DKK 150 million (approx. € 20 million) for the support of pilot windmills. (Political Agreement)

The support will be granted up to a three-year period, corresponding to the maximum duration of a prototype permit. Trial turbines outside the test centers can still be transferred to ordinary operating mills after three years. 

Pricing rules

Pilot  mills set up in 2018 receive 13 øre / kWh, corresponding to the tender ceiling in the tender, while pilot mills set up in 2019 receive a price supplement corresponding to the highest winning bid in the tender. (Political Agreement)

Lead time

A two-year realization period for land based wind and a four-year implementation period for offshore winds.

Frequency of tenders

Two tenders are to be held within the timeframe 2018-2019. (§ 50c VE-Lov)

Procedure

Process flow and deadlines

The Danish Ministry of Energy, Utilities and Climate and the Danish energy Agency will announce tenders and deadlines.  

Competent authority

The authority responsible for the tendering scheme is Danish Ministry of Energy, Utilities and Climate. (§ 56 par. 1 VE-Lov).

Distribution of costs

Distribution mechanism

  • State budget. part of the support comes from state budget for the period 2018-2019

Denmark

Further information

  • Energi-, Forsynings- og Klimaministeriet (ESKM) – Danish Ministry of Energy,- Utilities and Climate
  • +45 33 92 28 00
  • EFKM website
  • efkm(at)efkm.dk

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