Pure & Better Energy, a Denmark-headquartered developer of renewable energy projects, recently secured 20 MW of solar PV capacity at the inaugural Denmark-Germany cross-border auction for a European record-low cost of Danish Krone (DKK) 12.89/MWh ($1.81/MWh).
This tariff is in addition to Denmark’s market spot power price, which is currently priced at between DKK 20-25/MWh (approximately $2.81/MWh). Together, the price received by Pure & Better Energy for the solar power it provides adds up to ~$46/MWh ($0.046/kWh), while the market pays only whatever the spot price is at a given time.
These numbers represent a hugely competitive price for solar power in Europe, indicating that the region can compete on cost against some of the more sunny regions of the world.
The bids were lodged by three subsidiaries of Pure & Better Energy at October’s auction, which was the first ever cross-border solar tender.
According to Better Energy managing partner Mark Augustenborg Ødum, this price will prove disruptive to the energy market of Europe. “This is an absolute victory for solar PV in our quest to transition our power supply to one which is both sustainable and affordable for all,” he said.
Rasmus Kjaer, fellow managing partner at Better Energy, added that the company’s objective is to produce hundreds of millions of kilowatt-hours of clean electricity each year. “We are committed to addressing climate change and energy independence through renewable energy development, generating a brighter future for all,” said Kjaer.
Pure & Better Energy has secured tariffs for more than 100 MWp of solar in Denmark, and will begin building and commissioning these ground-mounted projects in 2017 and 2018 using either Huawei or Sungrow inverters. The developer already has more than 100 MW of installed capacity under its belt, mostly in the U.K. and Germany.
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The numbers in this article make no sense whatsoever. They appear to be insanely low. The only one that looks right is the 4.6c/kWh:
“~$4.60/MWh ($0.046/kWh),”
but that’s $46/MWh not ~$4.60/MWh.
Ian needs to read his article again and correct multiple errors.
The price is 0.1289 DKK/kWh over the price on the spotmarket.
Or 128.9 DKK/Mwh over the price on the spotmarket. (18.19$) which more or less results in 46$/Mwh for the moment but probably falling over time.
Just to repeat my earlier comment which appears to have been deleted. You seem to have gotten the per kWh prices correct, but all of the per MWh prices are wrong, as you seem to think there are 100kWh in a MWh.
These prices don’t match:-
“~$4.60/MWh ($0.046/kWh)”
Hope this helps.
Hiya. Thanks for updating the “~$46/MWh” figure, however you still need to change ALL of the other MWh figures as they too appear to be based on 100kWh to the MWh.
The official press release from the danish energy agency is found here (in danish, try google translate)
https://ens.dk/presse#/pressreleases/kontrakter-i-det-foerste-solcelleudbud-i-danmark-er-nu-underskrevet-1708473
1 kwh costs around DKK 0,25 on the nordic market due to norwegian hydropower and danish subsidised wind power. The DKK 0,1289/kwh is to be added to the DKK 0,25/kwh which is almost the same as the bid that won the german cross border tender at DKK 0,40/kwh
link here (in german) https://www.bundesnetzagentur.de/cln_1411/SharedDocs/Pressemitteilungen/DE/2016/161128_PVDK.html
In response to Mr James – low but not that low – lifetime price for Kreiger Flak (off-shore) is around Euro43/MWh . The PV including subsidy is around Euro44 – Euro50 this suggests that it aint that low. The reality is that there has been no price discovery with respect to PV in Europe. Auctions deliver price discovery – they encourage “sharper pencils”. I await with interest German on-shore wind auctions.