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EC approves Kriegers Flak state support

4C Offshore | Tom Russell
By: Tom Russell 28/03/2017 EC
The European Commission has approved state support for the 600MW Kriegers Flak offshore wind farm in Danish territorial waters after it was deemed 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.

It will help Denmark to reduce CO2 emissions, in line with EU energy and climate goals, without unduly distorting competition.

Commissioner in charge of competition policy Margrethe Vestager said: "The Kriegers Flak offshore wind farm will help to cut carbon dioxide emissions while the support is carefully designed to avoid distorting competition in electricity markets. I'm glad to be able to approve state support for this project."

In February 2017, Denmark notified to the Commission a state support measure consisting of a competitive bidding process for the design, construction, operation and decommissioning of an offshore wind farm in Kriegers Flak, in Danish waters of the Baltic Sea.

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 for around 12 years of operation. Electricity production from the wind farm will have to meet the standard obligations to ensure balance between supply and demand on the electricity grid. No aid will be granted when prices are negative.

Construction permission for Danish part of the Kriegers Flak was granted to Vattenfall in November 2016 with a  winning bid was EUR 49.9 per MWh. The wind farm will establish an interconnector between the Danish island of Zealand and the German mainlands via 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 stated commission.

The Swedish part of Kriegers Flak has a building permit that expires in 2018 and the German part has not yet been tendered. The project is set to be Denmark’s largest offshore wind farm and is to expected supply 600,000 Danish households with renewable energy.

For more information, please follow the links provided. Alternatively you can view the project on our
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