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Denmark

MARKET STRUCTURE

Due to an average growth of 71 per cent per year, Danish offshore wind capacity remains the highest per capita in Europe (409 MW in total in 2007). Denmark is at present close to reaching its RES-E target for 2010. Two new offshore installations, each of 200 MW, are planned. RES other than offshore wind are slowly but steadily penetrating the market supported by a wide array of measures such as a new re-powering scheme for onshore wind.

KEY SUPPORT SCHEMES

In order to increase the share of RES-E in the overall electricity consumption, Denmark has implemented the following measures:

A tendering procedure has been used for two new large offshore installations. Operators will receive a spot price and initially a settling price as well. Subsequent offshore wind farms are to be developed on market conditions.
A spot price, an environmental premium (€13/ MWh) and an additional compensation for balancing costs (€3/MWh) for 20 years is available for new onshore wind farms.
Fixed FITs exist for solid biomass and biogas under certain conditions.
Subsidies are available for CHP plants based on natural gas and waste.

Table I.6: Key Support Schemes in Denmark

Technology	Duration	Tariff	Note
Wind onshore	20 years	Market price plus premium of 13 €/MWh	Additionally balancing costs are refunded at 3 €/MWh, leading to a total tariff of approx. 57 €/MWh
Wind offshore	50.000 h afterwards	66-70 €/MWh spot market price plus a 13 €/MWh premium	A tendering system was applied for the last two offshore wind parks; balancing costs are by the owners
Solid biomass and biogas	10 years following 10 years	80 €/MWh 54 €/MWh	New biogas plants are only eligible for the tariff if they are grid connected before end of 2008.
Natural gas and waste CHP plants	20 years 20 years	Individual grant, depending on previous grants Three-time tariff	Above 10 MW only; annual, non-production related grant. 5-10 MW can choose the support scheme, below 5 MW only Three-time tariff
PV	Not determined	200-250 €/MWh	“Meter running backwards” principle applied in private houses

FUTURE TARGETS

In Denmark, the RES-E target from the EU Directive is 29 per cent of gross electricity consumption by 2010. With an increase from 8.7 per cent RES-E in 1997 to 26.30 per cent in 2004, Denmark is nearing its target of 29 per cent RES-E of gross electricity consumption in 2010.

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