Price-based mechanisms (Premium tariff for biogas)
Updated: 04.01.2019
Author: Karl Wikberg
Denmark supports the use of biogas for transport purposes, through a direct premium tariff for sold gigajoule of biogas (§ 43 b VE-Lov).
Eligible technologies
Only biogas is eligible (§ 43 b VE-Lov).
| Biogas | Eligible (§ 43 b VE-Lov). |
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Amount
There are three types of tariff for biogas sold for transport purposes.
| Biogas | The sum of the following tariffs will be paid to the eligible persons: - DKK 39 (€ 5.23) per gigajoule biogas (§ 43 b par. 2 VE-Lov).
- DKK 26 (€ 3.5) per gigajoule biogas (§ 43 b par. 3 VE-Lov).
- DKK 10 (€ 1.34) per gigajoule biogas (§ 43 b par. 3 VE-Lov).
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Addressees
The persons entitled to the payment of a tariff are the sellers of biogas to end consumers for transport purposes (§ 43 b par. 4 VE-Lov).
Procedure
Process flow | - Registration. Persons applying for receiving the tariff have to register at Energinet.dk and provide the authority with the necessary information (§ 50 a par. 3 VE-Lov).
- Decision. Energinet.dk shall decide on the right and the amount of the grant (§ 50 a par. 4 VE-Lov).
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Competent authority | Energinet.dk (§ 50 a par. 2 VE-Lov). |
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Degression
| Biogas | As of 01.01.2013, the tariff amounting to DKK 26 per GJ of biogas will be annually: - Decreased, in case the price of the natural gas in a previous year is higher than the basis price of DKK 53.20 per GJ, by the amount of this difference
- Increased, in case the price of the natural gas in a previous year is lower than the basis price of DKK 53.20 per GJ, by the amount of this difference (§ 43 e par. 1 VE-Lov).
As of 01.01.2016, the tariff amounting to DKK 10 per gigajoule biogas will be annually decreased by DKK 2 (€ 0.27) and will cease by the end of 2019 (§ 43 e par. 3 VE-Lov). |
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Distribution of costs
| State | The Danish state bears the costs of the premium tariff (§ 43 e par. 7 VE-Lov). |
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Denmark
