Act on Support for Utilisation of Renewable Energy Sources

This framework legislation aimed to support the establishment of renewable energy technologies and systems. The act contained specific conditions for obtaining grants to establish renewable energy installations. The level of each subsidy was adjusted periodically to correspond with the economics of each technology. The act also set out conditions for capital grants, technology development, analysis, evaluations, test facilities and information dissemination. In this context, the 2001 budget included provision for: - standard grants for renewable installations that provide up to 30% of approved expenses for solar thermal installations; 16% for biomass; 15% for heat pumps; and 30% for biogas plants. R&D projects (comparising about 34% of the total budget). Grants for renewable energy knowledge centres, and test and certification centres (about 34% of the total budget). Feed-in tariffs were: Wind: existing onshore plants (before January 2000) were paid a total fixed price of DKK 0.60/kWh (market price plus supplement); new plants were guaranteed a total of DKK 0.33/kWh for the first 22 000 full load hours. In addition, producers receive DKK 0.10/kWh until the green certificate market is initiated. Offshore wind was guaranteed DKK 0.353/kWh for the first 22 000 full load hours; in addition, producers also received DKK 0.10/kWh until the green certificate market is established. Offshore plants financed under previous rules only receive DKK 0.10/kWh until the green certificate market is in place. Biomass: electricity from biomass is paid about DKK 0.30/kWh, in addition to the DKK 0.10/kWh until the green certificate market is implemented. In addition, a DKK 30 million per year programme to support Danish biomass plants has been set up. The average payment to producers is about DKK 0.60/kWh. The price settlement for biomass plants will be further clarified in future legislation. The act also established renewable energy supply as a Public Service Obligation and allowed the expenses to be passed on to consumers as an extra charge, which is integrated in the price. The scheme was terminated in 2002.

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