Denmark
Denmark has a FIT law.
The main law can be found in the Consolidation of the Act on Electricity Supply, Law No. 286/2005 (unofficial English translation).
The Danish feed-in tariff scheme was amended in 2008 by the Law on the Promotion of Renewable Energy (VE-Lov).
Summary
In Denmark, the generation of electricity from renewable energy sources is promoted through a price regulation in terms of a bonus payment (see §§ 36-48 VE-Lov). In general, the operators of plants generating renewable electricity are granted a variable bonus payment, which is paid on top of the market price. The sum of bonus and market price shall not exceed a certain limit, which depends on the source of energy used and on the date of connection. If the sum of market price and bonus exceeds the maximum specified by statutory law, the bonus payment becomes negative and is set off against successive bonus payments. If the maximum payment is not set by law, in certain cases a guaranteed bonus payment on top of the market price may be granted.
The Danish Law on the Promotion of Renewable Energy aims at promoting wind energy (onshore and offshore), biogas, biomass, solar energy and wave energy. It also promotes hydro-power plants generating up to 10 MW.
The costs arising from the bonus payment for electricity generated from renewable energy sources are borne by the final consumers, whose share depends on their individual electricity consumption. The supervising company (Systemansvarlig virksomhed) pays the surcharge for renewable electricity to the plant operators (§§ 8, 27c, 59a Act on Electricity Supply).
Wind power producers onshore receive a guaranteed bonus of 3.4 €cent/kWh. The combined remuneration of tariff payment and market price is not to exceed 7.0 – 8.5 €cent/kWh, depending on the location of the wind power plant. An additional bonus payment of 1.6 €cent/kWh is granted for repowering. The combined remuneration of biogas is capped at 10.0 €cent/kWh. The premium payment for biomass plants is 2.0 €cent/kWh.
Tariff payment is limited to a maximum duration of 20 years.
EC review and assessment
Read a summary of the European Commission’s 2005 review of Denmark’s renewable electricity policies and of its 2007 assessment of Denmark’s progress in meeting the target set out in Directive 2001/77/EC.
Legal analysis
For a detailed analysis of the Danish feed-in tariff scheme read Miguel Mendonça et al, Stability, participation and transparency in renewable energy policy: Lessons from Denmark and the United States, Policy and Society 27 (2009) 379–398.
More information
Danish Energy Authority -- http://www.ens.dk/sw27999.asp
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