State aid: Commission approves Danish support for Thor offshore wind farm project

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has approved, under EU State aid rules, Danish support for the Thor offshore wind farm project, which will be located in the Danish part of the North Sea. The measure will help Denmark increase its share of electricity produced from renewable energy sources and reduce CO₂ emissions, in line with the European Green Deal, without unduly distorting competition in the Single Market.

Executive Vice-President, Margrethe Vestager, in charge of competition policy, said:  “This Danish measure is a very good example of how Member States can provide incentives to companies to take part and invest in green energy projects, in line with EU State aid rules. The Thor offshore wind farm project will contribute to achieving the EU’s ambitious energy and climate targets set out in the Green Deal, without unduly distorting competition in the Single Market.”

Denmark notified to the Commission an aid measure, with a total maximum budget of DKK 6,5 billion (approximately €870 million), to support the design, construction and operation of the new Thor offshore wind farm project. The project, which will have offshore wind capacity of minimum 800 Megawatt (MW) to maximum 1000 MW, will include the wind farm itself, the offshore substation and the grid connection from the offshore substation to the point of connection in the first onshore substation.

The aid will be awarded through a competitive tender and will take the form of a two-way contract-for-difference premium of the duration of 20 years. The premium will be paid on top of the market price for the electricity produced.

The Commission assessed the measure under EU State aid rules, in particular the 2014 Guidelines on State aid for environmental protection and energy.

The Commission found that the aid is necessary and has an incentive effect, as the Thor offshore wind project would not take place in the absence of the public support. Furthermore, the aid is proportionate and limited to the minimum necessary, as the level of aid will be set through a competitive auction. Finally, the Commission found that the positive effects of the measure, in particular the positive environmental effects, outweigh any possible negative effects in terms of distortions to competition, in particular, since the selection of the beneficiary and the award of the aid will be carried out through a competitive bidding process.

On this basis, the Commission concluded that the measure is in line with EU State aid rules, as it will foster the development of renewable energy production from offshore wind technologies in Denmark and reduce greenhouse gas emissions, in line with the European Green Deal, and without unduly distorting competition.

Background

The Commission’s 2014 Guidelines on State Aid for Environmental Protection and Energy allow Member States to support projects like the Thor Offshore Wind Farm. These rules aim at helping Member States meet the EU’s ambitious energy and climate targets at the least possible cost for taxpayers and without undue distortions of competition in the Single Market.

The Renewable Energy Directive established an EU-wide binding renewable energy target of 32% by 2030. The project contributes to reaching this target.

The recent EU offshore Strategy identifies the importance of offshore wind as part of the Green Deal.

The non-confidential version of the decision will be made available under the case numbers SA.57858 in the State aid register on the Commission’s Competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Remarks by High Representative/ Vice-President Federica Mogherini at the press conference following the EU-China Strategic Dialogue

EU adopts €130 million support package for Syrian refugees and local communities in Jordan and Lebanon

From coca to cocoa: three lessons from Peru on how farmers can leave the drug trade behind

A more credible, dynamic, predictable and political EU accession process – Commission lays out its proposals

Here’s how blockchain could stop corrupt officials from stealing school lunches

UN rights expert calls for civilian protection as fighting escalates between military and armed group

Why sustainable packaging is good for profits as well as the planet

The big five EU telecom operators in dire straights

Palliative care and Universal Health Coverage: Do not leave those suffering behind

Chart of the day: This is why we need to protect nature’s pollinators

EU supports recovery and resilience in Nigeria with additional €50 million

Plastic is a global problem. It’s also a global opportunity

State aid: Commission approves €12.835 million Italian aid measure to compensate Alitalia for further damages suffered due to coronavirus outbreak

Over 80 per cent of schools in anglophone Cameroon shut down, as conflict worsens

COVID-19: MEPs debate how to best protect cross-border and seasonal workers

The EU risks trade relations with China over the Tata hype about steel

5G will drive Industry 4.0 in the Middle East and Africa

July was the hottest month ever – what does that actually mean?

EU-Japan relations: Foreign Affairs MEPs back Strategic Partnership Agreement

Cameron postpones speech in Holland

Electronic cigarette – is it really a safer alternative to smoking?

International tourism arrivals hit record high in 2017, UN agency reports

Do not take the EP’s consent on MFF for granted, says Budget Committee Chair

Media freedom: EP warns of attempts to silence critics and undermine pluralism

Towards the new era of medicine

Has the treacherous theory about the ‘French patient’ finally prevailed?

European Agenda on Migration: Still fragile situation gives no cause for complacency

Progress made at COP25, despite lack of agreement to increase climate ambition

Refugee crisis update: EU lacks solidarity as migration figures drop

State aid: Commission approves €10 billion German scheme to compensate companies for damages suffered due to coronavirus outbreak

‘Extinction crisis’ pushes countries to agree stronger protection for global wildlife

How the ‘California effect’ could shape a global approach to ethical AI

North Korea: ‘Time to talk human rights’, says UN expert

VW emissions scandal: While U.S. car owners are vindicated, Europe still unable to change its laws and protect its consumers

14 innovative projects helping to save the planet and make the world a better place

EU Top Jobs summit ended with no agreement: welcome to Europe’s quicksand!

State aid: Commission approves €133 million Portuguese liquidity support to SATA airline; opens investigation into other public support measures

UN rights office appeals for peaceful Zimbabwe elections amid reports of intimidation

COP21 Breaking News_03 December: Argentina Accepts KP Amendment

Anti-vaccine sentiment one of 10 biggest health threats, says WHO

UN chief ‘commends’ leadership of Greece and former Yugoslav Republic of Macedonia, as name dispute draws to final close

Investing in working conditions and quality jobs

There’s no vaccine for the infodemic – so how can we combat the virus of misinformation?

Estonian Prime Minister Ratas: Europe is a thought that must become a feeling

Governments should step up their efforts to give people skills to seize opportunities in a digital world

Brazil: A strategic partner for the EU

A vaccination race between nations can have no winners

COVID-19 and indigenous peoples in Brazil: a neglected population and the importance of the vaccine

European Semester 2018 Spring Package: Commission issues recommendations for Member States to achieve sustainable, inclusive and long-term growth

UN condemns deadly attack one of its vehicles

Amid ‘unprecedented combination’ of epidemics, UN and partners begin cholera vaccination campaign in DR Congo

5 neuroscience hacks that will make you happier

Help African farmers cope with climate change threats, UN food agency urges

Forests ‘essential’ for the future, UN agriculture chief spells out in new report

A Sting Exclusive: Disaster risk resilience, key to protecting vulnerable communities

European Citizens’ Initiative: Commission registers ‘Mandatory food labelling Non-Vegetarian / Vegetarian / Vegan’ initiative’

3 things to know about India’s space programme

Migration Crisis: how to open the borders and make way for the uprooted

FROM THE FIELD: Murals help heal wounds of bloody conflict in Guatemala

Driving structural change through global value chains integration

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s