denmark: a european smart grid hub - Copenhagen Cleantech Cluster

Copenhagen Cleantech Cluster 4IntroductionDenmark has developed unique experience over severaldecades with the integration of renewables into the powersupply, and has a very flexible electricity market as a result.Thus, the country has already got a head start in the developmentof a new intelligent power grid that is planned toallow the integration of 100% renewable energy.As Denmark already manages the integrationof more wind power into the grid thanany other country in the world and has a widearray of smart grid assets within test anddemonstration and over 60 smart grid firms,it has the potential to be a world leader in thesmart grid industry in the coming years.Smart grid is a necessary and cost-effectivesolutionA smart grid is an electricity network thatuses digital and other advanced technologiesto monitor and manage the transport ofelectricity from all generation sources to meetthe varying electricity demands of end users.Smart grids co-ordinate the needs and capabilitiesof generation assets, grid operators,end users and electricity market stakeholdersto operate all parts of the system as efficientlyas possible, thereby minimizing costsand environmental impact while maximizingsystem reliability, resilience and stability. 1Globally, there is a pressing need to acceleratethe development of carbon free energytechnologies in order to address the globalchallenges of energy security, climate changeand economic growth. To enable this technologicaldevelopment and implementation,smart grids are essential. Moreover, they willturn out to be a more cost-effective solutionin most cases than merely expanding capacityin the existing grid.Our findingsThe present study has been conducted toprovide an overview of the smart grid sectorin Denmark from a business perspective. Theaim of the report was to identify and showcasethe strengths of the Danish smart gridsector as well as to highlight opportunities forinternational smart grid actors. The resultsgive a clear picture of a Danish smart grid sectorwith strong assets, continuous innovationand increasing growth: over 60 companieswork in the smart grid industry and togetherthey cover all of the eight smart grid technologycategories defined by the IEA. Moreover,Denmark is recognized as a unique locationfor test and demonstration, as is reflectedin the large number of R&D and demonstrationprojects: 22% of all projects concerningintelligent power grids in the EU take place inDenmark. 2In addition to the overview of Denmark’sstrengths within the smart grid industry, thereport has identified some possible futuretrends within the smart grid market. Due toa number of factors, experts suggest thatDenmark will experience rising demand withincertain smart grid business areas, includingelectrical vehicles and charging infrastructure;metering infrastructure; transmission enhancement;and integrated, flexible demandresponse solutions.1 OECD/IEA: Technology Roadmap – smart grids, 20112 EU JRC report, 2011