Subsidies for generation of electricity
In Denmark the production of electricity from renewable resources is supported through price premiums and fixed feed in tariffs.
Historically the level of support has changed numerous times, but it is a general rule that the support scheme which was in place when a production unit was connected to the grid, applies in the lifetime of the production unit.
As a result there is a high level of certainty about future support, at the time of investment.
In the summer of 2008 the level of support was increased for electricity produced from biomass, biogas and wind turbines.
The support level for production from solar PV, wave power, fuel cells running on renewable fuels etc. remains unchanged, but a special fund of 25 mil DKK pr. year in four years has been introduced to support projects which promote these technologies.
Support for electricity production is financed as a public service obligation paid by all Danish electricity consumers. The cost to consumers is specified in the memo Cost of RE support.
Development and demonstration of new energy technologies is supported by the EUDP fund which distributes 750 mil DKK in 2009 and 1 bill DKK in 2010 and each year onwards.
The support for new electricity producing units is specified in the memo Overview of support schemes in DK.
The memo History of Danish support for wind power describes the numerous historical support scheemes for wind power which have been in effect since the 70ies.