Feed-in premium tariffs for renewable power (Promotion of Renewable Energy Act)

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 9 September 2013

Denmarks 2009 Promotion of Renewable Energy Act establishes detailed feed-in tariffs for wind power, as well as other sources of renewable energy.

Onshore grid-connected wind power (not for owners consumption), connected as of 21 February 2008 benefits from a feed-in premium of DKK 0.25 per kWh for electricity production for the first 22,000 hours at the installed output (peak-load hours) of the wind turbine, after connection to the grid.

In addition, these turbines can benefit from a refund of DKK 0.023 per kWh for balancing costs for electricity.

Offshore wind farms installed following a tender process are subject to separate incentives. The wind farm at Horns Rev 2 will be provided a feed-in premium that, when added to the market price of electricity, will amount to DKK 0.518 per kWh. For the wind farm at Rødsand 2, the total tariff (premium plus market price) will amount to DKK 0.629 per kWh.

A price supplement is also granted to cover payment of any feeding fee related to supplying electricity to the grid.

Premiums apply to electricity production of 10 TWh, produced in accordance with the terms of the tendering procedure, for a maximum of 20 years after the wind farm has been connected to the grid.

  • Wind turbines connected to the grid since 20 February 2008 receive a price supplement of DKK 0.10 per kWh for 20 years from the date of connection to the grid. A refund of DKK 0.23 is also provided for balancing costs for electricity.
  • Turbines connected before 1 January 2005 receive a feed-in premium which, when added to the market price, results in a price of DKK 0.36 per kWh. Provisions do not apply to turbines financed by power companies.
  • Existing wind turbines, grid connected since 31 December 2002, receive a feed-in premium depending on output.

The premium, when combined with the market price, will lead to a total price of DKK 0.60 per kWh. It will be provided for ten years since the time of grid connection, ending on 31 December 2012.

For those with installed output of 200 kW, the premium is awarded for 25,000 peak-load hours; from 201-599 kW, it is granted for 15,000 peak-load hours; for those with an installed output of 600 kW and more, it is granted for 12,000 peak-load hours.

If the amount of electricity is supplied within ten years of grid connection, electricity produced for the remainder of the period will be supported by a feed-in premium which will lead to a price (including market price) of DKK 0.43 per kWh.

If the amount is not supplied within ten years, it will continue to be supported, so the premium and market price do not exceed DKK 0.60 per kWh.

For wind turbines financed by power companies, and grid-connected as of 1 January 2000, separate premiums are awardedFor onshore wind power, the premium and market price will not exceed DKK 0.33 per kWh, and the feed-in premium is granted for 10 years from the time of grid connection.

For offshore wind farms, the total price (premium plus market) is not to exceed DKK 0.353 per kWh, and an additional supplement provided for those paying fees for grid connection. This premium will be granted for electricity production corresponding to production during 42,000 peak-load hours, and can be up to DKK 0.07 per kWh on average per 24 hours.

Both kinds of turbines also benefit from a premium tariff of DKK 0.10 per kWh.

Small turbines installed for consumption by the owner, with an installed output of 25 kW or less, also benefit from premium tariffs when electricity is supplied to the grid. Regardless of grid-connection date, the total price (feed-in premium and market price) granted amounts to DKK 0.60 per kWh.

Feed-in premiums for electricity produced by wind power producers that have scrapping certificates are also updated in the Promotion of Renewable Energy Act (see separate entry). 

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