Offshore staff
COPENHAGEN, Denmark – The Danish government and parties to the Climate Agreement for Energy and Industry of June 2020 have entered an agreement concerning subsidies for the Hesselø offshore wind farm north of Zealand.
Under the arrangement Hesselø will be granted a 20-year period of risk sharing between the Danish State and the concession owner, in accordance with the Contract-for-Difference (CfD) model.
This gives the concession owner not only longer-term certainty for the investment, but also more short-term risk by exposing the concession owner to market signals.
According to the Danish Energy Agency, the price premium will be calculated as the difference between the offered bid price and a reference price, i.e. the average electricity prices in the previous calendar year.
The concession owner will then receive a premium in years in which the offered bid price is higher than the reference price, and will correspondingly pay the Danish State in years in which the reference price is higher than the offered bid price.
04/13/2021
