Technology neutral tender 2021 completed

The technology neutral tender, which was open for bids from 23 August 2021 with a deadline for bids 22 October 2021 has now been completed.

The Danish Energy Agency has not received any bids in the tender round for 2021.

The Danish Energy Agency is in the process of investigating the results, e.g. as part of an ongoing analysis that examines the need for technology neutral tender rounds after 2021. The analysis investigates broadly, and the results from previous tender rounds, including this year's, are just one component of the overall analysis. Besides the knowledge gleaned from previous tender rounds, the analysis will provide a status on the subsidy-free RE-projects in Denmark, provide an overall picture of the expected RE-development towards 2024, investigate the development in costs and revenues of RE-projects, and investigate the ability to secure funding, hedge risk and attract investors to subsidy-free RE-projects.

The Danish Energy Agency will talk with relevant trade associations as part of the investigation into the results of the technology neutral tender 2021, just as the Danish Energy Agency has done after previously held technology neutral tender rounds.

Facts about the technology neutral tender

• A single technology neutral tender was held in 2021 combining the allocated funds for 2020 and 2021. The technology neutral tender in 2021 had an overall cap of DKK 1.2 billion (2020 prices), which corresponds to a capacity limit of 428,570 kW (onshore wind equivalent). Both solar PV, onshore wind turbines, open door offshore wind turbines, wave power plants and hydroelectric power plans could participate.
• The technology neutral tender employed 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.
• There was a bid cap of 25 øre per kWh. Projects that had completed the initial project development could participate, for example projects where the local development plan had been approved. Projects that won support had to connect to the electricity grid within respectively 2 years or 4 years. Open-door offshore wind turbines had to connect to the grid within 4 years, while other technologies had to connect within 2 years.
• On the 22 July 2020 the government (Social Democracy), the Liberal Party of Denmark, the Danish People's Party, the Red-Green Alliance, the Socialist People’s Party, the Social Liberal Party, the Conservative People’s Party, Liberal Alliance and the Alternative agreed to continue technology-neutral tenders until 2021. Projects in the tender compete to deliver most green electricity cheapest. In addition the parties agreed to reserve funds for technology-neutral tenders in 2022-2024.