Agreement on settlement for small wind turbines now in place
6/1/2016
It finally happened. The law on the increased subsidy scheme is now fully in place. After months of uncertainty, where the ball has been passed around between the EU and the Ministry of Climate, Energy and Building, all issues have now been clarified. This means that the increased price supplement will come into effect from February 11, 2015.
This is good news for both owners and manufacturers of small wind turbines, but especially for the many people who can now invest in their own wind turbine. Growth in the number of small wind turbines will be a great benefit to the environment and will create new jobs. HS Wind is very pleased with the new subsidy rules: "We have seen a lot of interest in our 25 kW small wind turbine, Viking 25, but everyone has been hesitant because there has long been uncertainty about the settlement prices. Now we are about to roll up our sleeves and follow up on all the inquiries," says a happy Ulrich Høgenhaven, CEO of HS Wind.
The agreement means that owners of a Viking 25 turbine will receive 150 øre per kWh for the electricity not used by the small. This is more than double the previously set market price of 60 øre/kWh. The new law also states that the price supplement is guaranteed for 20 years after the wind turbine is connected to the grid and that the support is retroactive for wind turbines installed on November 20, 2012 and later. This lays a solid foundation for current and future owners of small wind turbines.
"It is good that the agreement secures the owners of small turbines for 20 years. This is enough to provide an attractive return on the price of a new turbine and ongoing maintenance. This is, of course, a very decisive argument for most people," says Ulrich Høgenhaven.
HS Wind is relieved about the new agreement, having pressed the politicians and officials while they discussed the complicated issues. "Already a few hours after the news, we can report an extra high level of activity. It's a wonderful development. We are pleased on behalf of the turbine owners and that Denmark is now facing a potential gain in both jobs and the environment," concludes Ulrich Høgenhaven.
The EU approval
In the summer of 2013, the Danish Parliament passed a law on support rules for small wind turbines. In the spring of 2014, the European Commission questioned the legality of the Danish PSO tax, which forms the basis for the support for the expansion of green energy in Denmark. The uncertainty created a crisis in the market for 25 kW wind turbines, where interest in investing in their own wind turbines dried up.
The EU approval was granted in October 2014, but it turned out that there were ambiguities in the Commission's decision. The Ministry of Climate, Energy and Building received a correction of the approval in December 2014, and was thus able to submit the executive orders that are required for the increased support scheme to enter into force on February 11, 2015.
How do you do it?
The new subsidy rules will come into force on Wednesday, February 11 at 10:00 am, and small wind turbine owners can apply to Energinet.dk for the subsidy according to the new rules. HS Wind reminds current wind turbine owners that the new subsidy scheme is also relevant for them if they have installed turbines after November 20, 2012.
It finally happened. The law on the increased subsidy scheme is now fully in place. After months of uncertainty, where the ball has been passed around between the EU and the Ministry of Climate, Energy and Building, all issues have now been clarified. This means that the increased price supplement will come into effect from February 11, 2015.
This is good news for both owners and manufacturers of small wind turbines, but especially for the many people who can now invest in their own wind turbine. Growth in the number of small wind turbines will be a great benefit to the environment and will create new jobs. HS Wind is very pleased with the new subsidy rules: "We have seen a lot of interest in our 25 kW small wind turbine, Viking 25, but everyone has been hesitant because there has long been uncertainty about the settlement prices. Now we are about to roll up our sleeves and follow up on all the inquiries," says a happy Ulrich Høgenhaven, CEO of HS Wind.
The agreement means that owners of a Viking 25 turbine will receive 150 øre per kWh for the electricity not used by the small. This is more than double the previously set market price of 60 øre/kWh. The new law also states that the price supplement is guaranteed for 20 years after the wind turbine is connected to the grid and that the support is retroactive for wind turbines installed on November 20, 2012 and later. This lays a solid foundation for current and future owners of small wind turbines.
"It is good that the agreement secures the owners of small turbines for 20 years. This is enough to provide an attractive return on the price of a new turbine and ongoing maintenance. This is, of course, a very decisive argument for most people," says Ulrich Høgenhaven.
HS Wind is relieved about the new agreement, having pressed the politicians and officials while they discussed the complicated issues. "Already a few hours after the news, we can report an extra high level of activity. It's a wonderful development. We are pleased on behalf of the turbine owners and that Denmark is now facing a potential gain in both jobs and the environment," concludes Ulrich Høgenhaven.
The EU approval
In the summer of 2013, the Danish Parliament passed a law on support rules for small wind turbines. In the spring of 2014, the European Commission questioned the legality of the Danish PSO tax, which forms the basis for the support for the expansion of green energy in Denmark. The uncertainty created a crisis in the market for 25 kW wind turbines, where interest in investing in their own wind turbines dried up.
The EU approval was granted in October 2014, but it turned out that there were ambiguities in the Commission's decision. The Ministry of Climate, Energy and Building received a correction of the approval in December 2014, and was thus able to submit the executive orders that are required for the increased support scheme to enter into force on February 11, 2015.
How do you do it?
The new subsidy rules will come into force on Wednesday, February 11 at 10:00 am, and small wind turbine owners can apply to Energinet.dk for the subsidy according to the new rules. HS Wind reminds current wind turbine owners that the new subsidy scheme is also relevant for them if they have installed turbines after November 20, 2012.
Contact us
If you'd like to hear more about whether a Viking VS turbine could be the right choice for you, please don't hesitate to contact us. We are always ready with guidance and advice - whether you already own a small wind turbine or are thinking of investing in one.
