Brussels, 27/02/2015 (Agence Europe) - On 26 February, the European Commission gave the go-ahead to Danish plans to support a 400 MW wind farm at Horns Rev, off the Danish west coast. The wind farm is expected to make an important contribution to the decarbonisation of the economy. Under the measure, the Danish State will grant the operator of the wind farm a set premium on top of the market price for electricity. This will be financed through the Danish Public Service Obligation (PSO) tariff, a charge levied upon all electricity consumed in Denmark for the support of renewable energy. To ensure that the state support is limited to the minimum necessary, the premium will be determined in a competitive bidding process, awarding the contract to the operator that offers the lowest premium level. Moreover, no state subsidies will be paid for periods in which the wholesale price is negative. The Commission therefore considers that the measure supports renewable energy in a market-based way, as required by energy and environment guidelines, without unduly distorting competition in the Single Market. (Élodie Lamer)