On Tuesday 4 May, the European Commission authorised Denmark to pay 400 million euros in aid for the production of electricity from renewable sources. The measure will help Denmark meet its renewable energy targets without unduly distorting competition and contribute to the EU’s goal of achieving climate neutrality by 2050.
For Margrethe Vestager, Executive Vice-President in charge of competition policy, the Danish support “will contribute to substantial reductions in greenhouse emissions, supporting the objectives of the Green Deal”.
The support scheme covers offshore wind turbines, onshore wind turbines, wave power plants, hydroelectric power plants and solar photovoltaic installations.
The aid will be granted via a competitive tendering procedure between 2021 and 2024 (two-way contract for differences premium): if the electricity price is lower than a reference price (auction), the State pays the renewable electricity producer the difference between the actual electricity price and the reference price. Conversely, if the price is higher than the reference price, the producer pays the State the difference between the actual electricity price and the reference price.
The scheme will be open until 2024 and aid can be paid out for up to 20 years after the electricity is connected to the grid. (Original version in French by Lionel Changeur)