Solar PV pilot tender

The Danish Energy has held a pilot tender of price premium for electricity from solar PV, which was awarded in December 2016, with the last solar PV projects connected to the grid by December 2018. The pilot tender of price premium for electricity from solar PV was for projects of no more than 2.4 MW, within a total capacity of 20 MW, of which 2.4 MW could be located in Germany.

The Danish Energy Agency received 36 tenders for a total of 79.45 MW, far above the 20 MW total capacity of the pilot tender. In total 9 tenders were awarded contracts, three from each of P&B Solpark Danmark 8 K/S, P&B Solpark Danmark 9 K/S and P&B Solpark Danmark 11 K/S, for a price premium of 12.89 Danish øre per kWh, which according to the conditions of the pilot tender will be administered for 20 years from the time of grid connection. The Danish Energy Agency received no tenders for solar PV projects located in Germany.

The winning tenders are for a total capacity of 21.6 MW, as the Danish Energy Agency could include the tender, which made the total capacity exceed 2.4 MW and 20 MW respectively. With the price premium from the winning tenders, the total volume of aid will be approximately 2.8 million DKK annually, from the installations have been connected to the grid. This is significantly below the 8 million DKK annually, which was the expected total yearly aid during the drafting of the pilot tender.

The tender was open to all types of entities incl. both natural and legal persons and was decided on the basis of the lowest price premiums offered.

Link for the law on pilot tender of price premium for electricity from solar PV (Danish).

Danish-German mutual opening af tenders

In connection with the pilot tender, Denmark entered into an agreement with Germany about a mutual opening of tenders for price premiums for electricity from solar PV. A part of the pilot tender was therefore cross-border, as 2.4 MW of the pilot tenders total capacity was opened to solar PV projects located in Germany. The agreement concerned one Danish tender for 2.4 MW and one German tender for 50 MW, which were open for both Danish and German tenderers. The objective was that both pools were tendered in competition with national tenderers, so that the solar PVs were placed in the most cost-effective manner. In this way the free market was utilised to create the lowest-cost expansion of solar PVs.

Information on the German tender is available on webpage of the German Federal Network Agency. 

Signed agreement with Germany on the pilot tender for solar PV (danish version)

Signed agreement with Germany on the pilot tender for solar PV (English version)

Public consultation of the tender material for the solar PV pilot tender

In connection with drafting the pilot tender, the Danish Energy Agency invited the solar industry and other interested parties to send in comments and questions. In relation to this, the Danish Energy Agency held a public dialogue meeting. See the following material (some of which is in Danish), for information from the public consultation:

 

Contact

Leo Silfen Leth
Advisor (+45) 3395 1269
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