On Monday 1 March, the European Commission authorised Danish State Aid for the Thor offshore wind farm project which will be located in the Danish part of the North Sea.
The measure will help Denmark increase its share of electricity produced from renewable energy sources and reduce CO₂ emissions, without unduly distorting competition in the Single Market.
Margrethe Vestager, Executive Vice President responsible for Competition Policy, hailed it as “a very good example of how Member States can provide incentives to companies to take part and invest in green energy projects”.
Denmark has notified support of approximately €870 million to support the design, construction and operation of the new Thor offshore wind farm project. The project will have an offshore wind capacity of between 800 and 1,000 megawatts. The aid will be granted by means of a call for tenders (two-way contract for differences premium for a duration of 20 years). The premium will be paid in addition to the market price for the electricity produced.
The Commission found that: - the assistance was necessary and had an incentive effect; - aid is proportionate and limited to the minimum necessary; - the positive effects of the measure outweigh its negative effects (distortion of competition). (Original version in French by Lionel Changeur)