Prices tumble in Danish joint tender

DENMARK: Top-up prices for onshore wind farms fell 84% from the previous grant price in the country's first technology-neutral renewable energy tender.

A fixed top-up of DKK 250/MWh used to be paid for a term of seven years (pic credit: Vestas)
A fixed top-up of DKK 250/MWh used to be paid for a term of seven years (pic credit: Vestas)

Three onshore wind projects with a combined capacity of 165.5MW secured contracts with an average 20-year top-up of DKK 21.5/MWh (€2.88/MWh).

This is below the former tariff of DKK 250/MWh paid to wind farm owners for seven years under Denmark's Promotion of Renewable Energy Act.

Wind was also cheaper than the DKK 28.60/MWh average price of premium contracts awarded to three solar PV projects.

In total, 17 bids were entered for approximately 260MW of onshore wind and 280MW of solar PV, the Danish Energy Agency stated.

Bid prices included the cost of grid connection and will be paid on top of a market price.

Danish developer NRGi Wind will receive a top-up of DKK 18.90/MWh for a 28.8MW project in the North Denmark region.

Meanwhile, Eurowind Energy and GK Energi were successful with their bid of DKK 19.80/MWh for the companies’ 77.4MW Thorup-Sletten wind farm, which will be built in Denmark’s northernmost region, North Jutland. It was the largest project successful in the auction.

SE Blue Renewables, a joint venture (JV) between commercial pension fund PFA Pension and energy and telecommunications company SE, was also successful. It will receive a premium of DKK 25/MWh for a 59.3MW site in the Central Denmark region.

Henrik Vinther, director of the Danish wind energy association DK Vind noted it is important that both wind and solar projects were successful.

He added: "An energy system based solely on green energy needs both wind and sun. Therefore, it is pleasing that both wind and solar are among the winners."

The tender was the first of two pitting onshore wind against solar, with a further auction to follow next year.

A total budget of DKK 842 million is available for the two tenders: DKK 254 million was allocated for the first auction, with the remainder to be awarded next autumn.

Find out more about the world's latest auctions using Windpower Monthly's Tender Watch 

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