Factsheet: Law on the Promotion of Renewable Energy

Law on the Promotion of Renewable Energy

Key Information
Full name of Instrument & Measure (English): 
Law on the Promotion of Renewable Energy
Full name of Instrument & Measure (native language): 
Lov om fremme af vedvarende energi
Description: 
The purpose of this Act is to promote the production of energy through the use of renewable energy sources in accordance with climate, environment and macroeconomic considerations in order to reduce dependence on fossil fuels, ensure security of supply and reduce emissions of CO2 and other greenhouse gases. Denmark promotes renewable electricity generation through a premium tariff. Plant operators receive a variable bonus on top of the market price. The sum of the bonus and the market price shall not exceed a certain statutory maximum, which depends on the date of connection of a given plant and the source of energy used (§§ 36-48 VE-Lov). In certain cases, plant operators are granted a guaranteed bonus on top of the market price. In such cases the maximum is not defined by law. The Law on the Promotion of Renewable Energy promotes all technologies except for geothermal power generation (§ 2 VE-Lov). Biogas (§§ 43a - 43e, 44 VE-Lov) and biomass (§§ 45-46 VE-Lov) are eligible.
Goal/Aim: 
Stimulate electricity from renewable sources.

Sector/Topic targeted:

Responsible Authority: 
Energinet.dk

Status:

Year Instrument & Measure Started: 
2009
Year Last Instrument & Measure was last Amended: 
2014