Premium tariff (Depreciated Biomass Installations)

RE Act

Until April 2019 electricity production from solid biomass was supported with a premium tariff of 0.02 EUR/kWh (0.15 DKK/kWh). By applying before this date, existing non-depreciated installations could continue receiving a premium tariff in the depreciation period.
Existing depreciated installation were instead given the option to apply for a premium tariff based on the excess costs of using biomass instead of a fossil reference. No application deadline applies for this scheme. The premium tariff may be granted for up to four years at a time, but only until 10 years from 29 June 2019 (§§ 45a and b RE Act).

The premium tariff is calculated based on the difference between operating costs using biomass and operating costs using an alternative fossil reference. If the calculation results in a negative value (i.e., that the fossil fuels are more expensive than the biomass) then the support is set to zero. A price ceiling of 0.015 EUR/kWh (0.11 DKK/kWh) applies.
In 2020 the premium tariff was 0.011 EUR/kWh (0.08 DKK/kWh) for wood pellets and 0.0 EUR/kWh (0.0 DKK/kWh) for other types of biomass (support set to zero since this type of biomass is already cheaper than a fossil fuel alternative) (§ 45b RE Act).

The premium tariff is available to existing biomass installations that are not eligible to continue receiving the former premium tariff of 0.02 EUR/kWh (0.15 DKK/kWh) because they are already depreciated. The installation must have begun producing electricity for the grid from biomass before 1 April 2019 (§ 45b RE Act).

An application form must be filled out and sent by email to DEA (§ 45b RE Act).

DEA