It sets the framework for two pilot auction rounds to be held in Denmark and Germany in 2016 allowing for cross-border participation of installations for the first time.
“Integrating renewable energies into the Internal Energy Market is a major challenge for a successful energy transition in Europe,” said Rainer Baake, secretary of state in the German energy ministry.
The agreement sets the terms for two separate but mutually open PV auctions.
While Denmark will partially open one auction round with a total capacity of 20MW up to 2.4MW to bids for ground-mounted PV projects located in Germany, Germany will open one auction round for ground-mounted projects with a capacity of 50MW to installations located in Denmark.
“With this co-operation agreement in hand Denmark and Germany will ensure, that the funding of renewables in both countries is in compliance with EU law,” Danish energy, utilities and climate minister Lars Christian Lilleholt said.
“Furthermore, the cross border auctions will provide valuable experience with auctioning of support for renewables.”
In accordance with EU state-aid rules, member states are encouraged to open up 5% of the capacity to be installed each year via tenders to projects in other EU countries, depending on reciprocity and an agreement between the two co-operating nations.
After evaluating the experience with its first partner countries, Germany plans to widen the concept to other neighbouring nations.
