The European Commission has approved a state aid scheme designed to support the production of electricity using biomass in Denmark.
The €550 million scheme will allow Denmark to generate electricity using biomass from existing biomass installations. Support will be in the form of a premium to cover the additional operating costs of producing electricity from biomass compared to producing electricity from a coal plant.
According to the European Commission, the scheme is “necessary” to prevent the switch of the supported installations to fossil fuels. In a statement, the Commission said it concluded that the scheme will contribute to the EU’s energy and environmental objectives and the goals outlined in the European Green Deal, without “unduly distorting competition”.
Under the scheme, support premiums will be calculated on an annual basis and will be capped at DKK0.11 (€0.015)/kWh.