The European Commission has found support to be granted to the 600MW Kriegers Flak offshore wind farm in Danish territorial waters to be in line with EU state aid rules. The support will be granted as a premium on top of the electricity price in the Nord-Pool market. The tender was carried out in 2016 and the winning bid was DKK 0.372/kWh (around €50/MWh) to be paid for a total of 30 TWh of production.
This is the estimated production at Kriegers Flak for around 12 years of operation. No aid will be granted when prices are negative. In addition, a new interconnector will be established to link the Danish island of Zealand to Germany via the Kriegers Flak offshore wind farm and two German offshore wind farms, Baltic 1 and Baltic 2. This interconnector will therefore allow for an increased exchange of electricity between Denmark and Germany. This is fully in line with the objective of a resilient and integrated energy market across the EU. The Commission concluded that the project's contribution to increasing the share of renewable energy produced in Denmark and reducing carbon dioxide emissions outweighs any potential distortions of competition due to the government support.
