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European Commission approves €400m for Danish aid scheme to produce electricity from renewable energy sources

On 4 May 2021, the European Commission approved the Danish aid scheme to support electricity production from renewable resources under the EU State aid rules. The aid scheme:

  • supports measures that help Denmark reach its renewable energy targets without disrupting competition;
  • contributes to the European Green Deal’s objective of achieving climate neutrality by 2050;
  • contributes to the overall reduction of greenhouse gas emissions in Denmark;
  • provides support to a wide range of technologies that generate renewable electricity.

The Danish scheme will support electricity production from renewable energy sources. This includes onshore wind turbines, offshore wind turbines, wave power plants, hydroelectric power plants and solar PV. The measures and scheme build from the previous Danish aid scheme that expired on 31 December 2019.

The aid scheme will be awarded through a competitive tendering procedure for the time period 2021-2024 and will be in the form of a two-way contract-for-difference premium. In this model, the Danish State will pay the renewable electricity producer the difference between the actual electric price and the reference price. The scheme is open until 2024 and aid can continue to be paid out for a maximum of 20 years after the renewable electricity is connected to the grid.

 

For more news on sustainability gains in the technology sector and related policies, explore the Advanced Technologies for Industry’s (ATI) Policy Brief titled Responsible digital transformation - the bridge between digital and circular economy policies. For more information on advanced technologies in Europe, explore the ATI project website.

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