Denmark improves feed-in tariff for biogas

The Danish government has agreed with the majority of the parties in the Danish parliament to improve the feed-in tariff for biogas.

The feed-in tariff will be increased to 1.15 DKK/kWh, which is about 15.4 eurocent/kWh.

The increased feed-in tariff will be implemented this year. With this decision the government has reached a level of support for biogas which should make anaerobic digestion pofitable in Denmark according to the Danish Biogas Association.

The feed-in tariff will be the same for the use of biogas in central heat and power plants and for injection into the natural gas grid.

The tariff will gradually be reduced by 0.10 DKK throughout the next 8 years based on the assumption that biogas will become more competitive towards fossil fuels.

Central heat and power plants running only on biogas may now choose to join the free electricity market and to receive an additional feed-in tariff for biogas – in stead of receiving the fixed feed-in tariff at 1.15 DKK/kWh.

In addition to this, the Danish parliament has decided to improve government funding for the construction of new biogas plants from 20 percent to 30 percent of the total investment, but only in 2012.