Regulatory and policy options to encourage development of ...

More documents

Recommendations

Info

SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUALpage 9.74(a)(b)(c)The increased reimbursement of energy excise tax (1984) due to fallingoil prices.New prices for sales to the grid.A 20 per cent direct subsidy to dispersed installations (reduced from30 per cent) but a 50 per cent subsidy to installations in wind farms.(Karnoe, 1990)3. THE LAW FOR WIND TURBINES 1992The Law for Wind Turbines, enacted in 1992, was the first Danish policy to introducea full subsidy mechanism. It established a fixed tariff rate to be paid by theutilities for any wind generated electricity.The Act also formalized the allotment of responsibility for meeting the costs ofgrid connection for wind turbines, an issue that had previously engendered considerablecontroversy. The law stipulated that turbine owners would henceforthbe responsible for costs of grid connection, with the distribution utilities responsiblefor strengthening the grid so that the connection was workable. In fact, thisactually set up a system of shallow connection charging with utilities having tostrengthen the grid in the specific area in which the wind farm was to be constructed,and thus bearing the majority of the cost burden. While the agreementoriginally applied only to turbines under 150 kW, then under 250 kW, it was laterrelaxed to apply across the board (Gipe, 1995).The Act fixed the amount the utilities had to pay for wind-generated electricityat 85 per cent of that charged to a local, average retail consumer with anannual consumption of 20,000 kWh. This amounted to €0.044/kWh, but turbinesreceived up to DKK €0.081/kWh by the end of the scheme in 2000 asthe result of the addition of a CO 2tax compensation of €0.014/kWh and anenergy tax compensation of €0.022/kWh (Kjær, 1999). This price compareswith the price of €0.028/kWh that electricity could attract with the Nordicpower exchange in 2003.Further measures to increase the available sites include a Government mandateto each region. This has resulted in the identification of more potential onshoresites than was expected, with the likelihood that these will be developed in thenext few years.
MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.754. ENERGY REGULATION IN DENMARKThe regulatory structure for the electricity sector in Denmark is shown in figure Ibelow. The Energy Authority regulates the distribution network operators (DNOs)and deals with any complaints. The Minister grants licences. The system operatorsare responsible for prioritization relating to renewables on the grid and forbalancing the system.Figure I.Regulatory governance bodies within the Danish electricitysupply sectorMinistry ofEconomic andBusiness AffairsThe EnergyAuthorityThe CompetitionAuthorityThe EnergyComplaints BoardThe EnergySupervisory BoardSystem operator(SO)Grid companies(distribution andtransmission)Supply committedcompaniesProductioncompanies( 25 MW)5. CHANGES IN DANISH ENERGY POLICYDanish energy policy, including that relating to wind energy and other renewableenergy sources was brought up to date with Energy21, published in 1996. Thislaid down Danish targets for onshore wind energy of 1500MW to be in place by
Page 1:
Module 9Regulatory and policy optio
Page 4 and 5:
SUSTAINABLE ENERGY REGULATION AND P
Page 6 and 7:
Page 8 and 9:
Page 10 and 11:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29: SUSTAINABLE ENERGY REGULATION AND P
Page 39 and 40: MODULE 9: RENEWABLE ENERGY: REGULAT
Page 41: MODULE 9: RENEWABLE ENERGY: REGULAT
Page 129:
MODULE 9: RENEWABLE ENERGY: REGULAT
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150:
show all

Regulatory and policy options to encourage development of ...

Create successful ePaper yourself

Delete template?

Save as template?