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European Commission approves Danish renewables support measures

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Three schemes for renewable energy boost in line with State Aid rules

Schemes target onshore, offshore wind and solar projects in Denmark

State aid granted for a period of 20 years after grid connection

London — The European Commission has approved three Danish schemes to support wind and solar power production in 2018 and 2019 under EU State Aid rules, it said Friday.

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After assessing the three schemes under the EU State Aid rules, the EC said it found the schemes would encourage the development of offshore and onshore wind and solar technologies in Denmark.

It said these 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 minimized."

The aid for these three measures will be granted for 20 years from the time of the connection to the grid and will be financed from the state budget, the EC said.

The three measures Denmark plans to implement are: a multi-technology tender scheme for onshore and offshore wind turbines and solar installations, with a budget of DKK842 million ($128.5 million), a scheme for onshore wind testing and demonstration projects, with an expected budget of DKK200 million, and a transitional aid scheme for onshore wind, with a budget of DKK40 million.

Denmark aims to supply 50% of its energy consumption from renewable sources by 2030 and become independent of fossil fuels by 2050. More broadly, the EU's Renewable Energy Directive has established renewables targets for all member states, with Denmark's target pegged at 30% shares of renewable energy sources in gross final energy consumption by 2020.

--Anuradha Ramanathan, anuradha.ramanathan@spglobal.com

--Edited by Jonathan Dart, jonathan.dart@spglobal.com