Summary

The electric power consumption per capita in Denmark is relative low with around 6,3 MWh/capita. The reasons are partly relative small heavy industry, partly a long political effort in reducing consumption and improving efficiency.

After the oil crises in 1971, electricity production was converted from being oil to be coal based. In mid 90'ties around 75% of the electricity production were coal based. But this created a CO2 problem, which lead to new goals for conversion, where the two most successful ways was conversion to natural gas at CHP's, and wind power. In 2003 more than 25% of the electricity consumption was based on decentralized CHP's, mainly using natural gas and 16% were produced by wind power. The share of oil was reduced to around 5%. Other renewable than wind plus garbage delivered around 7%. The remaining were coal based – but in addition to the consume inland, there were a large export in 2003, about 25% of the total production. With the latest large off shore wind projects in Denmark; wind power is expected to cover 20% of the electricity consumption a year with normal wind conditions.

The Danish power system is interconnected with the power grids in neighboring countries in Scandinavia and northern Europe. There is quite a large amount of power exchange between these countries during the year. Some years Denmark has a net import, other years a net export of power, mainly depending on the amount of precipitation (for hydro power) in Norway and Sweden.

Energy market

The market for electric power in Denmark was deregulated in 2002. There are two system responsible, one east of great Belt (Elkraft) and one west of (Eltra). They are operating the transmission grid, taking care of prioritized production (Wind, Biomass, CHP etc. on special agreements, typically fixed prices) and secure balance capacity. Power production as well as trading of electric power is free, any power company has to right to get connected to the grid (if technically possible) and consumers can buy their power from any company. The price is negotiated between producer and buyer, but the buyers have to buy a certain share of prioritized production. Most of the "free" electricity are traded on the spot market; Nord pool.

Wind power producers get for installations before 2003 a guaranteed 10 year fixed price of 0,43 DKK/kWh plus extra 0,17 DKK/kWh based on different regulations, mainly full load hour based (e.g. 12.000 full load hour, approx. 5 year for WTGs from 600 kW and up). Finally there was a first round of scrap certificate system (ending 2003), where extra 0,17 DKK/kWh is given based on taking down older smaller WTGs. For WTGs installed after 1.1.2003 only market price + 0,10 DKK/kWh subsidy is paid, with a maximum upper limit of 0,36 DKK/kWh for getting the full 0,10 DKK/kWh (+ eventually the scrap certificate 0,17 DKK/kWh for WTGs installed before 2004). The low price, approximate 0,32 DKK/kWh (4,2 €c/kWh) incl. subsidy, is the main reason for that almost no new WTGs besides the off shore projects with special agreements was installed in 2003 and practically none in 2004. Due to this fact, the Government has now decided a new scrap certificate round (spring 2004), that should start winter 2004. The new round aims at taking down 175 MW up to 450 kW WTGs and building 350 MW new on shore where the subsidy will be extra 0,12 DKK/kWh in 12.000 full load hours. The time period is set to 5 years.

Legal situation

Denmark it was in 1999 decided by the parliament that 20% of the electricity consumption should be based on renewable (excl. garbage). This goal is reached now and no new targets have been set.

It is decided by parliament that the utilities must supply wind farm area with the needed grid capacity for connecting the WTGs without cost for the wind farm operator if the WTG area is planned by the authorities. (Which is in practice always is).

In 1995 all municipalities had to have a plan for where WTGs could be established by specific pointed out areas. This was probably the most important reason for the fast development in Denmark from 1995-2002 besides the economic feasibility of WTG projects due to subsidies.

To develop wind power plants it is necessary to get building permission from the local authorities (Municipality) and a planning permission from the county administrative board. For wind farms with > 3 WTGs or one WTG > 80 m (total height = Hub height + rotor radius), it is necessary to develop an EIA (VVM in DK). The process to apply for permissions takes often a long time; years rather than months. For a “normal” case including EIA the time frame will be 1 year.

Acceptance among the population

There has been performed several opinion polls all concluding a large majority for wind power. A long development where most wind power were owned by the local inhabitants near the wind power plants (coops) have made wind power very popular. Until May 2000 there were restrictive owner regulations, one person could only own 1 WTG, and coops could only hold members within the municipality or neighbor municipality, with a maximum owner share of 9 MWh/year/person. After these restrictions were taken away, an increasing resistance is seen. Some of the major newspapers have made "campaigns" against wind power for several years. One problem has been the envy of some earning good money on wind power in the past situation with good subsidies.

The visual impact seems to be the major environmental problem.

Impacts in the economy

Wind power has a large impact on the Danish economy on several different levels. Denmark is the leading manufacturing country worldwide and WTG export is one of the 3 largest export articles from Denmark. This invokes as well the trade balance as the CO2 balance essentially.

Problems

The main problem for wind power in Denmark (2003) was the low prices for the wind power electricity and the uncertainty on the future prices depending on the free electricity marked. But also missing government goals on wind power development put the wind power development on stand-by. Without government goals, the regional planners have no reasons to pinpoint or accept new potential sites for wind power in a situation where they feel the visual impact is giving "saturation".

November 2004 update:
With the new decided scrap certificate round together with decision on 2 x 200 MW new offshore project (expected around 2006-7), there are in total expected 750 MW new wind power next 5 years (150 MW/y). Here main problem are expected to be the conflict between the needs for large hub heights to make the projects feasible and the limitations of hub heights set by the regional planners. An additional problem is the restructuring of the municipalities and counties. Municipalities are going to merge, so the 275 present municipalities will be reduced to less than 100 and these are then given the regional planning authority, which now is at the counties. The 14 counties will disappear and 5 new regions appear which main task will be handling health care. This process will run 2005-2008, and could easily make the wind power planning left behind.

Statistics

Figure 1 In 1999 the first long term political goal was reached - 1500 MW wind power. In 2003 the second, 20% of electricity consume from renewable was reached. No new goals have been set besides the new repower round (net + 175 MW on shore) and 2 x 200 MW new offshore within 5 years. For 2004 the figures are a prognosis based on first 10 months.



Figure 2 Due to weak wind the resent years, the actual penetration is less than if wind conditions had been normal. Also in 2004 only around 90% wind year are expected based on first 10 months – follow the development at www.vindstat.dk



Figure 3 The wind energy index tells how much wind energy there has been on annual basis seen from a wind turbine. This has decreased dramatically the last years – based on 7 year average, there has been 10% less than on long term average. If global climate changes is part of the reason for this is difficult to say. 2004 is expected around 90% based on first 10 months.

Energy production

Total energy production in Denmark (2003): 1194 PJ
  Portion natural gases: 301,5 PJ
  Portion mineral oil: 780,1 PJ
  Portion renewable + garbage: 112,3 PJ

Energy consumption

All energy consumption in Denmark 2003 corrected for export and climate was 829 PJ – from this 280 PJ (33%) was used for electricity production. Electric power consumption per inhabitant (2003): 6500 kWh

Consumption of 34.000 GWh electricity divided on fuel source was in 2003:

Percent of consume

Oil 7%
Natural gas 28%
Coal 72%
Wind 16%
Other 9%

SUM 131%

The 31% is net export. Other is mainly burning of garbage from households and straw. A comprehensive statistic on energy production and consume in Denmark are found at: http://www.ens.dk/sw1366.asp

Wind energy:

Wind energy converters (new 2003): 122
Accumulated wind energy converters (2003): 5.390
Power of the wind energy converters (2003): 147 MW
Accumulated power of the wind energy converters (2003): 3.115 MW
Price for wind energy current (2004) per kWh: 4,2 €Cent, where 3 €cent is free marked price and 1,2 €c is CO2 subsidy.
WTGs established before 2004 get a higher price where there are several different transfer regulations.

Note: a large number are taken down, mainly in 2002 - these are subtracted in the accumulated figures, but not in the 2003 (new) figures.