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Denmark follows UK Contracts for Difference

Offshore pioneers are looking to each other for subsidy inspiration, with Denmark choosing to follow the approach used in the UK and Germany, with a Contract for Difference (CfD) mechanism selected for the Thor offshore wind park. Wind Denmark announced last Friday that bids for the Thor offshore wind park will follow the CfD model, in a reverse auction process where developers are guaranteed a flat rate for electricity produced, regardless of the underlying market rate, which may be higher or lower. Initial intent to switch to this scheme was mentioned in 2017, with proposals to invest €174 million to fund offshore wind and solar. Now the Thor scheme will allocate €495 million to will cover the construction and connection…

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