Denmark and Germany sign first cooperation agreement on mutual cross-border pilot auctions for PV installations
The Danish and the German governments signed a cooperation agreement on the mutual opening of auctions for PV installations. This cooperation agreement is the first of its kind.
It sets the framework for two pilot auction rounds to be held in Denmark and Germany in 2016 allowing for cross-border participation of installations for the first time.
German State Secretary Baake said: “Integrating renewable energies into the Internal Energy Market is a major challenge for a successful energy transition in Europe. With this cross-border pilot we are sending an important signal on the role that regional cooperation can play here, to the benefit of both sides”.
Danish Minister for Energy, Utilities and Climate Lars Christian Lilleholt said: “With this cooperation agreement in hand Denmark and Germany will ensure, that the funding of renewables in both countries is in compliance with EU law. Furthermore, the cross-border auctions will provide valuable experience with auctioning of support for renewables.”
With the cooperation Denmark and Germany will strengthen their regional energy cooperation and establish a framework for a partial opening of renewables support. While exploring the potentials of cross-border renewables deployment, both countries stress the importance that Member States decide if and to what extent they want to support renewable energy sources in other Member States and to control the cost and effects. It is key that the cooperation is to the countries? mutual benefit and has a real effect on their energy transitions. Therefore, the agreement is based on the principle of reciprocity and covers physical electricity import.
The agreement sets the terms for two separate but mutually opened PV auctions. While Denmark will partially open one auction round with a total capacity of 20 MW up to 2.4 MW to bids for ground mounted PV projects located in Germany, Germany will open one auction round for ground mounted PV projects with a capacity of 50 MW to installations located in Denmark.
The auctions are based on the respective national auction designs. As regards location specific conditions, the rules and conditions of the country where the installation is located, will apply. This relates for instance to conditions on the eligible areas and sites and rules on construction and taxes.
The cooperation is based on the cooperation mechanisms laid down in the EU Renewable Energy Directive 2009/28/EC and implements an opening of renewables auctions for the first time.
The pilot project will provide valuable experience on cross-border support options for Denmark and Germany as well as for the EU debate on further regional energy cooperation.
The text of the cooperation agreement can be downloaded here.