Common Contracts
2 similar Subsidy Agreement contracts
New agreement about Hesselø Offshore Windfarm is a step closer to net zero subsidies to offshore windSubsidy Agreement • April 22nd, 2022
This means that for Hesselø OWF there will be offered a 20-year period of risk sharing between the Danish State and the concession owner in accordance with the so-called two-way Contract-for-Difference (CfD) model. The CfD-model gives the concession owner certainty for the investment in the long run, but places more short-term risk by exposing the concession owner to market signals. The price premium will be calculated as the difference between the offered bid price and a reference price, which consists of the average electricity prices in the previous calendar year. The concession owner receives a premium in years in which the offered bid price is higher than the reference price, but correspondingly pays the Danish State in years in which the reference price is higher than the offered bid price.
New agreement about Hesselø Offshore Windfarm is a step closer to net zero subsidies to offshore windSubsidy Agreement • February 2nd, 2022
This means that for Hesselø OWF there will be offered a 20-year period of risk sharing between the Danish State and the concession owner in accordance with the so-called two-way Contract-for-Difference (CfD) model. The CfD-model gives the concession owner certainty for the investment in the long run, but places more short-term risk by exposing the concession owner to market signals. The price premium will be calculated as the difference between the offered bid price and a reference price, which consists of the average electricity prices in the previous calendar year. The concession owner receives a premium in years in which the offered bid price is higher than the reference price, but correspondingly pays the Danish State in years in which the reference price is higher than the offered bid price.
