On July 21 2015 the Danish Energy Agency called for applications for offshore testing of new technologies relating to the establishment and operation of wind energy production.

Turbines in test projects will receive financial support that will guarantee a price of Dkr0.70 per kilowatt-hour (kWh) produced and sold. The deadline for applications is October 15 2015.

Background and objectives

By political agreement, at least 50% of total electricity consumption by 2020 is to be produced by wind turbines, including offshore wind farms in particular.

As part of the agreement, a support scheme has been established for offshore test projects with a capacity of up to 50 megawatts (MW). The scheme provides a supplement to the market price of electricity produced by turbines during testing, which guarantees a total price of Dkr0.70 per kWh for a period corresponding to approximately 50,000 full-load hours.

The objective of the scheme is to support test projects that can reduce the production costs of electricity produced at offshore wind farms. The aim is to make the price of offshore wind energy competitive. It is expected, but not required, that test projects will be collaborations between wind turbine manufacturers, component manufacturers and project developers.

Conditions

Support is available for tests of any kind of new technology that could reduce the capital or operating costs of wind turbines. However, the test must include at least one offshore wind turbine.

Projects can aim to:

  • test new data regarding the operation of turbines;
  • use new types of foundations or other important wind-farm components such as electricity and transmission elements; or
  • test new principles designed for installation and service.

The locations of test projects have not yet been designated. It is up to the applicant to identify and develop an offshore test area for its project in Danish territorial waters. The applicant must conduct a preliminary screening of the test area to demonstrate that it is suitable for the establishment of offshore turbines.

The scheme is not limited to Danish citizens or companies. Any party with test projects that meet the scheme's objectives may apply. Applicants must demonstrate that they have the necessary technical and financial resources to build, operate and decommission offshore wind turbines and complete the test and to obtain relevant licences required under the Promotion of Renewable Energy Act.

Submission of applications

Applications must be submitted electronically to the Danish Energy Agency in Danish or English. The deadline for submission is October 15 2015. The agency is expected to publish a list of all applications received, including information on the project's title and objectives, the names of applicants and the amount of MW applied for.

Assessment of applications

The Danish Energy Agency will assess and decide on applications based on an overall valuation of the project's development and commercial potential. Priority will be given to test projects that:

  • address innovative technological developments compared to existing technologies and solutions;
  • have significant potential to reduce the construction and operation costs of offshore wind farms;
  • are well defined and technically feasible;
  • are at full-scale (ie, support will not be provided for tests during the research phase);
  • meet a demand in the market and have a well-defined customer aim;
  • have potential for economic growth and the prospect of a competitive product;
  • enable certification or other relevant types of verification; and
  • provide variety by testing several technologies.

The agency is expected to decide on applications before the end of 2015.

For further information on this topic please contact Nicolaj Kleist at Bruun & Hjejle by telephone (+45 33 34 50 00) or email (nkl@bruunhjejle.dk). The Bruun & Hjejle website can be accessed at www.bruunhjejle.com.

 This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.