Denmark

Denmark

Electricity reform turns law

Few changes were made to the final wording of Denmark's Electricity Reform Act before it was passed it into law in late May (Windpower Monthly, April 1999). Wind turbines already built as well as those built before January 2003 will receive a limited premium price subsidy for their output of DKK 0.33/kWh. This base payment is secured for at least the first ten years of their operation, or until a "well functioning" market for renewables credit trading is established (Windpower Monthly, June 1999). From January 1, turbines will also receive an additional DKK 0.10/kWh-a refund of Denmark's CO2 tax on energy-as well as a production incentive of DKK 0.17/kWh, depending upon their size and the number of full load hours (flh) operated: units under 200 kW receive the production incentive for the first 25,000 flh, for which most of them have already operated; turbines rated at 201 kW-599 kW get the incentive for 15,000 flh; and turbines over 600 kW qualify for the incentive for the first 12,000 flh. To encourage the owners of old turbines smaller than 100 kW to scrap their machines and instead invest in new and more powerful co-operatively owned wind turbines, a power payment of DKK 0.60/kWh will be guaranteed for the first 12,000 flh. And in addition to their guaranteed ten year base payment, turbines built from 2000-2002 are to receive at least DKK 0.10/kWh from sales of green credits to consumers or utilities. They will not receive the DKK 0.17/kWh subsidy.

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