Country:Denmark
Year:2004
Policy status:Ended
Jurisdiction:National
Date Effective:2004
Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Policy Target:Multiple RE Sources>Power
Policy Sector:Electricity, Heating and Cooling, Multi-sectoral Policy
Size of Plant Targeted:Small and Large
URL:http://www.ens.dk
Description:

Renewable energy plants connected to the grid before 21 April 2004 benefit from the following support: The transmission system operator sells the production on the spot market and the subsidy together with the market price ensures a tariff of 60 øre/kWh for 20 years from the date of grid connection and for at least 15 years as from 1 January 2004.

Biogas plants connected to the grid between 22 April 2004 and 31 December 2008: The transmission system operator sells the production on the spot market and subsidy together with the market price, ensuring a tariff of 60 øre/kWh for 10 years and 40 øre/kWh for the following 10 years. The subsidy implies that the total use of biogas not exceed 8 PJ/year.

Special RE plants of major importance and connected to the grid after 21 April 2004: Special plants using energy sources or technologies of major importance to future exploitation of RE electricity include wave power, solar energy, fuel cells using renewable energy sources, biomass gasifiers and stiring motors or the like with biomass.

Other types of plants can be approved apart from water turbines in rivers and production technologies already in use for biomass incineration. The transmission system operator sells the production on the spot market and subsidy together with the market price, ensuring a tariff of 60 øre/kWh for 10 years and 40 øre/kWh for the following 10 years.

Other RE plants connected to the grid after 21 April 2004: The transmission system operator sells the production on the spot market, and the owner receives the market price and for 20 years a premium of 10 øre/kWh.

Small solar cell systems connected via consumption installation: Solar cell systems with an effect of less than 6 kW connected via consumption installations in households and that are exempt from electricity levies are not eligible for a subsidy.

Biomass incinerators financed by electricity utilities: Plants financed by electricity utilities are plants built by electricity utilities as result of an order or special agreement. Plant owners are responsible for sale of production on the electricity market and for related costs. They are eligible for a subsidy that, combined with the market price, comprises 40 øre/kWh. The subsidy is paid for 10 years from the grid connection and for at least 10 years as from 1 August 2001. A premium of up to 100 DKK/tons biomass fuel burnt can also be paid in the same period to a maximum of 30 million DKK/year. For the remaining period up to 20 years from the grid connection a premium of 10 øre/kWh is paid.

Plants using RE in combination with other fuels: These executive orders apply if annual RE utilisation is between 10% and 94% of the combustible value of the total fuels. Plant owners are responsible for sale of RE production on the electricity market and related costs, providing the same applies to the other production.

Last modified: Fri, 30 Aug 2013 14:38:18 CEST