New executive order on electricity production (elproduktionsbekendtgørelsen) makes wind turbine and solar PV installations exempt from licence requirements in the Electricity Supply Act

All electricity production plants with a capacity exceeding 25 MW have so far had to apply for a licence for electricity production according to s. 10 of the Danish Electricity Supply Act (elforsyningsloven). This applies irrespective of whether it was an onshore or an offshore installation.

The new executive order on electricity production entered into force on 1 January 2022 and replaced the executive order on power plants (kraftværksbekendtgørelsen). The executive order on electricity production introduces a more simple procedure for the installation of new wind turbine and solar PV installations by, among other things, making RE plants exempt from the licence requirement in the Electricity Supply Act.

The new procedure
For new onshore wind turbine and solar PV installations exceeding 25 MW, applications must be submitted to the Danish Energy Agency for construction permit and electricity production permit according to s. 11 and s. 13, respectively, of the executive order on electricity production. The applications may be submitted together.

Plant owners must still live up to relevant requirements and conditions following from the licence system, including in particular requirements for technical and financial capacity. The Danish Energy Agency's practice from the licence system regarding technical and financial capacity will, according to the explanatory notes, as a general rule be continued.

Offshore wind farms are subject to the existing permit requirements in the Danish RE Act, but are now exempt from the licence requirement in the Electricity Supply Act.

The contingency requirements in the executive order on electricity contingency planning (elberedskabsbekendtgørelsen) and the executive order on IT contingency planning (IT-beredskabsbekendtgørelsen) apply to enterprises with permits for electricity production in plants exceeding 25 MW according to the executive order on electricity production or the RE Act.

Impact on existing licences
Existing electricity production licences are maintained in accordance with their contents and durations.

An enterprise holding a valid electricity production licence according to the Electricity Supply Act will be affected by the new rules if the operation of the plant is to continue after expiry of the licence. The enterprise must apply for an electricity production permit before expiry of the licence in order to continue the operation of the plant.

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