Promotion in Denmark

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Updated: 28.11.2017

Author: Anna Pobłocka-Dirakis

Summary of support schemes

  • Premium tariff. In Denmark, the generation of electricity from renewable sources is promoted through a premium tariff system based on bonus payments. The operators of renewable energy plants usually receive a variable bonus, which is paid on top of the market price. The sum of the market price and the bonus shall not exceed a statutory maximum per kWh, which depends on the source of energy used and the date of connection of a given plant. 
  • Tenders. Premium tariff for offshore wind parks is awarded through tenders.
  • Net–Metering. Electricity producers using all or part of the electricity produced for their own needs are totally or partly exempt from paying Public Service Obligation on this electricity. The Public Service Obligation is a charge levied to support renewable energy.
  • Loan guarantees. Associations of wind energy plant owners and other local initiatives may apply for guarantees for loans for feasibility studies that are conducted in the run-up to the construction of a wind-energy plant.

Technologies

VE-Lov governs the promotion of technologies for the generation of electricity from wind energy, biogas, biomass, solar energy, wave and tidal energy as well as hydro-electric power stations whose capacity does not exceed 10 MW.

Statutory provisions

  • VE-Lov (Lov om fremme af vedvarende energi No. 1288/2016 – Law on the Promotion of Renewable Energy)
  • Act on Electricity Supply (Bekendtgørelse af lov om elforsyning No. 418/2016 – general provisions on the supply of electricity)
  • BEK 999/2016 (Bekendtgørelse om nettoafregning for egenproducenter af elektricitet – Regulation on Net-Metering)

Denmark

Further information

  • Energi-, Forsynings- og Klimaministeriet (EFKM) – Danish Ministry of Energy, Utilities and Climate
  • +45 339 228 00
  • EFKM website
  • efkm(at)efkm.dk