Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 75
Offshore Wind Worldwide 2023
5. OFFTAKE ISSUES
5.1 Offtake, remuneration
and tariff scheme
The remuneration schemes for various energy plants are set out in the RE Act. The DEA is
responsible for administering the schemes.
Historically, tendered OWFs have received
subsidies in the form of a premium from the
Danish state for a 20-year period. The subsidies are generally granted in accordance
with a Contract-for-Difference (CfD) model.
However, in some cases, concessionaires are
granted a guaranteed bonus.
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A special two-way CfD model was developed for the tender of Thor OWF in 2021.
With this CfD model, the concessionaire
receives a premium in years in which the
offered bid price is higher than the reference
price, but correspondingly pays the Danish
state in years in which the reference price
is higher than the offered bid price. Caps
apply to the total net value of the subsidies
from the Danish state and the on the total
payments from the concessionaire to the
state. There is no opt-out option for the
concessionaire.
OWF
Tender date
Premium
Horns Rev 2
7 July 2004
DKK 0.518 per kWh (approx. EUR 0.07)
Rødsand 2
7 February 2008
DKK 0.629 per kWh (approx. EUR 0.08)
Anholt
30 April 2009
DKK 1.051 per kWh (approx. EUR 0.14)
Horns Rev 3
6 December 2013
DKK 0.77 per kWh (approx. EUR 0.10)
Kriegers Flak
22 December 2016
DKK 0.372 per kWh (approx. EUR 0.05)
Thor
1 December 2021
DKK 0.01 per kWh (approx. EUR 0.0013)
If the OWF is established through the opendoor procedure, the remuneration is regulated in the same manner as for onshore wind
farms. Historically, OWF’s established under
the open-door procedure and connected
to the grid between 1 January 2014 and 20
February 2018 receive a premium of DKK
0.25/kWh (approx. EUR 0.033). Since 2018,
subsidies for OWFs established under the
open-door procedure are granted in annual
technology neutral tenders. The two-way
CfD model was used in the technology neutral tender held in 2021. No bids were received in the technology neutral tender round
for 2021, and the technology neutral tenders
are now closed. Today, there is, therefore, no
subsidies available for electricity production
from onshore wind farms or OWFs established through the open-door procedure.
The developers themselves must sell the
electricity on the market. The offtake mechanism thus depends on the specific PPA,
and there is no generally applicable take or
pay provision. However, reference is made to
section 5.4(d) below concerning entitlement
for compensation in connection with certain
curtailments of production.
