The European Commission has approved under EU State aid rules
three schemes to support electricity production from wind and
solar in Denmark in 2018 and 2019.
Denmark has a goal of supplying 50% of its energy consumption
from renewable energy sources by 2030 and to become independent
from fossil fuels by 2050. In line with this goal, the Danish
authorities will implement three measures supporting renewable
energy:
-
A multi-technology tender
scheme for onshore and offshore wind turbines and
solar installations, with a budget of DKK 842 million (€112
million). The beneficiaries of the aid will be selected through
two tenders organised in 2018 and 2019, with the different
technologies competing with each other. The selected
installations will offer their electricity on the market and
receive support in the form of a premium on top of the market
price (top-up payment).
- An aid scheme for onshore wind for test and
demonstration projects outside the two national
test centres for large wind turbines, with an expected budget
of DKK 200 million (€27 million), and
a transitional aid scheme for onshore
wind, with a budget of DKK 40 million (€5 million).
The aid for the three schemes will be granted for a period of
20 years from the time of the connection to the grid. The
renewable support schemes are financed from the State budget.
The Commission assessed all three schemes under EU State aid
rules, in particular the Commission's 2014 Guidelines on State
Aid for Environmental Protection and Energy. It found that
the three Danish schemes will encourage the development of
offshore and onshore wind and solar technologies, in line with
the requirements of the Guidelines.
On this basis, the Commission concluded that the measures will
help Denmark boost the share of electricity produced from
renewable energy sources, in line with the environmental objectives
of the EU, while any distortion of competition caused by
the state support is minimised.
Background
The Commission's 2014 Guidelines on State Aid
for Environmental Protection and Energy allow Member
States to support the production of electricity from renewable
energy sources, subject to certain conditions. These rules are
aimed at meeting the EU's ambitious energy and climate targets
at the least possible cost for taxpayers and without undue
distortions of competition in the Single Market.
The Renewable Energy
Directive established targets for all Member States'
shares of renewable energy sources in gross final energy
consumption by 2020. For Denmark, that target is 30% by 2020.
Furthermore, Denmark has a goal of supplying 50% of its energy
consumption from renewable energy sources by 2030 and to become
independent from fossil fuels by 2050. All three schemes aim to
contribute to reaching those targets.
More information on today's decision will be available, once
potential confidentiality issues have been resolved, in
the State aid register on
the Commission's competition website
under the case numbers SA.49918, SA.50715 and SA.50717.
The State Aid Weekly
e-News lists new publications of State aid decisions
on the internet and in the EU Official Journal.
