Vattenfall's Danish Bids Make DEA Revise PSO Projections

In the light of the recent results of Danish nearshore and Kiegers Flak tenders, both won by Vattenfall, Danish Energy Agency (DEA) has revised and updated its Public Service Obligation (PSO) projection.

The estimated PSO spending until 2025 has now been reduced, compared to the August projection. Namely, the PSO cost in 2025 is now expected to be DKK 1.6 billion lower than estimated in the DEA's August projection.

Vattenfall won the tender to build the 600MW Kriegers Flak offshore wind farm in the Danish part of the Baltic Sea with the lowest ever bid of EUR 49.9 per MWh, 58% below the original cap of EUR 120 per MWh.

Prior to this, the company won the Danish nearshore wind tender for Vesterhav Syd and Vesterhav Nord sites by offering the lowest bid of EUR 0.06 per kWh (DKK 0.475/kWh).

In November, a broad political coalition in the Danish parliament reached an agreement to shift the Public Service Obligation (PSO) tariff for renewables away from electricity bills and to the national budget.