Legal sources on renewable energy

• VE-Lov (Lov om fremme af vedvarende energi No. 1392/2008 – Law on the Promotion of Renewable Energy)
• Act on Electricity Supply (Bekendtgørelse af lov om elforsyning No. 1115/2006 – general provisions on the supply of electricity)
• LBK 224/2009 (Bekendtgørelse af lov om Energinet.dk – act on transmission grid operator Energinet.dk)

• Price regulation. In Denmark, the generation of electricity from renewable sources is promoted through a price regulation in terms of bonus payments. The operators of systems for the generation of electricity from renewable sources usually receive a variable bonus, which is paid on top of the market price. The sum of market price and bonus shall not exceed a statutory maximum per kWh, which depends on the source of energy used and the date of connection of the system (§§ 36-48 VE-Lov).
• Subsidies. Denmark provides subsidies for small-scale systems in pursuance of VE-Lov.
• Loan guarantees. Local initiative groups may apply for the provision of a guarantee for loans for feasibility studies that are conducted in the run-up to the erection of a wind-energy system.

VE-Lov prescribes the promotion of technologies for the generation of electricity from wind energy, biogas, biomass, solar energy,  wave and tidal energy, as well as hydro-electric power stations whose capacity does not exceed 10 MW (§§ 2 and 47 VE-Lov).

Only electricity generated by Danish systems is eligible for promotion.

The costs of the promotion system for renewable energy as stipulated by the Law on the Promotion of Renewable Energy are borne by the final consumers (§ 8 par. 2 Act on Electricity Supply).