The Danish Energy Agency has completed the technology neutral auction round for 2021, which had an overall cap of DKK1.2bn (€160m), corresponding to a capacity limit of 429 MW (Denmark). The institution has not received any bids. Solar photovoltaic, onshore wind, offshore wind, tidal and hydropower projects could participate. The technology-neutral tender employed for the first time a two-sided CfD-model, where the price premium can vary from year to year but remains fixed within each calendar year. Aid is awarded for 20 years. Projects that won support had to connect to the electricity grid within respectively 2 years or 4 years.
According to the national press, the lack of bids was already expected due to the low level of support. The ceiling price for bids was established at only around a quarter of the current electricity price and developers were expected to pay up to DKK 5.6m/MW (€0.7m/MW) at moments of high power prices while the support for low power prices periods could reach DKK 2.8m/MW (€0.4m/MW) at the most.
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