Production subsidy relief

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Owners of older wind turbines in Denmark have breathed a sigh of relief with the news that they will continue to receive their wind production incentives through the rest of 1999. The Danish government's framework to liberalise the country's electricity sector, agreed in March, contains a plan to phase out today's DKK 0.17/kWh (EUR 0.02/kWh) production subsidy to private owners of machines from July 1, depending on size of turbine (Windpower Monthly, April 1999). Machines up to 600 kW in size lose the subsidy after they have produced 15,000 or 25,000 full load hours-a ceiling that many of these turbines have already reached. The EU is not expected to approve the law until at least January 1, 2000. Therefore, in the transition period, the ministry of environment and energy has decided to allow the subsidy to continue, financed through electricity prices, however, and not the taxpayer

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