Aarhus – Capital of Wind Energy - Aarhus.dk

During the financial crisis and climate summit years of2008 and 2009, the G20 countries launched extraordinarycrisis packages totalling no less than 184.1 billion dollarsfor green investments. The vast majority of these will beimplemented during 2010 and 2011, and most of thesestimulus packages have earmarked money specifically forwind energy. The total investment in green technologies,including these stimulus package billions, is expected tomount to 200 billion dollars already this year – an increaseof almost 25 percent compared to the world’s combinedgreen investment in 2009. See figure 1.The Inspiration Catalogue of the Wind IndustryDespite the failed climate summit, the first crucial steps towardsa far-reaching reorganisation of the fossil economyhave already been taken. Even though it is a long way tothe goal, the world has, mentally, reached the point of noreturn from where future progress can only move towardsan increasingly green economy.Giant Leap in Green InvestmentsNational stimulus targeted at green investment, bn dollarsCanadaBrazilFranceSpainUKAustraliaGermanyJapanEUKorea Rep.Global clean-tech investments, 2004-2010, bn dollars46+56%ChinaUSTotal+57%701.02.52.73.63.74.14.28.612.727.846.966.6+43%110Figure 1: Green investments have leapfrogged since 2004. Themajority of green stimulus initiatives will be implemented in2010 and 2011.Source: Bloomberg New Energy Finance: Fact Book 2010.184.1+23%+10% -7% 2001731571622004 2005 2006 2007 2008 2009 2010The change will be driven by industries which employsustainable energy sources such as wind power; solarenergy, biomass- and waste-fuels, biofuels; hydropower,subsoil heating, and wave energy. Wind energy is amongthe industries in which the fastest growth is predicted.From an annual market of around 5,000 megawatts in2000, the annual output of the global wind energy markethas increased eightfold to around 40,000 megawattsin 2009 and, according to the latest predictions from theinternationally renowned analysts BTM-Consult (based,incidentally, in Central Jutland), is set to increase to over70,000 megawatts over the next five years. See figure 2.In economic terms, BTM estimates that the combinedglobal market for wind turbines in the next five years willgrow to around 350 billion dollars – roughly equivalent toDenmark’s annual GDP.In this process, the Danish wind cluster – concentratedin the Central Denmark belt with Aarhus as its capital –can play an essential role as a business environment, skillscentre, experience bank, and global role model. The Danishcluster is one of the world’s oldest, most geographicallyconcentrated, and most innovative.This report further investigates the cluster’s assets andliabilities and analyses how it can fully realise its potential.• DENMARK – THE NESTING BOX OF WIND ENERGY.Denmark was the first country in the world to developand implement wind power in its energy production.Today, it is the leader in the global marketharbouring leading international manufacturers, asolid supply chain, and a strong research environment.Behind Denmark’s success lies a political visionof energy self-sufficiency. This has paved the way fora close cooperation between public authorities, researchinstitutions, the business community, NGOs,and citizens. See page 10.• AARHUS IN THE EYE OF THE HURRICANE. 87 percentof the combined turnover from wind energy inDenmark is generated by businesses in the GreaterAarhus area. Around 11,000 of the 25,000 employeesin the Danish wind industry work less than onehour’s drive from Aarhus. Many of the world’s largestand most globally important wind companies, suchas Vestas, Siemens, Gamesa and Suzlon, are basedhere. See page 16.• LEARNING FROM THE WIND GIANT. Over the last thirtyyears, the wind giant Vestas has slowly moved awayfrom its home town, Lem, on the North Sea coast,through Ringkøbing and Randers towards Aarhus,where the new corporate headquarters of Vestas willopen in 2011. During the 114 kilometer journey, Vestashas undergone an extraordinary transformation,from a small forge to a global market leader witharound 22,000 employees worldwide; a market shareof 12.5 percent; and a turnover of 49.4 billion kronerin 2009. See page 26.The Long BoomGlobal wind power capacity, 1990-2009 (actual) and2010-2014 (forecast), Megawatt80,00060,00040,00020,00001990ActualForecast, EuropeForecast, USForecast, AsiaForecast, rest of worldFigure 2: The annual global output of wind energy hasincreased eightfold between 2000 and 2009.Source: BTM Consult, March 2010.1995 2000 2009 2014• THE WORLD’S STRONGEST SUPPLY CHAIN. One ofthe strongest assets of the Danish wind clusters is theextensive bedrock of suppliers to the wind turbineindustry that has gathered in Central Denmark. Noother place in the world has such a high concentrationof businesses. It comprises the entire supply chain ofdesign, development and production of wind turbineparks. Around 80 businesses have grown up aroundthe major manufacturers, and many have contributedsignificantly to the industry’s impressive technologicaldevelopment since its inception. See page 30.• INCUBATOR FOR THE GLOBAL WIND INDUSTRY. In thefuture, access to a qualified workforce, core technologicalskills and lucrative markets will be crucial for theincreasingly global wind industry. The most significantglobal powerhouses are currently in Denmark, Germany,Spain, Great Britain, the US, India, and China. Dueto unique system knowledge and globalisation experience,the Aarhus wind cluster is an especially importantdestination for new global wind industry players.See page 36.• GLOBAL CENTRE FOR FUTURE ENERGY THINKING. Tokeep the rise in global temperatures below two degreesCelsius, the energy systems of the future will have tobe based on 100 percent sustainable energy. This posestremendously high demands on the design, dimensioningand integration of sustainable energy systems.Along with a number of industry leaders, training andresearch institutes in Aarhus have set out to developroadmaps for this development. Among the initiativesis the establishment of a 35,000 square metre energy researchcentre, Navitas, on Aarhus Harbour. By 2014, itwill house 2,000 students and more than 300 businesspeople, researchers, and teachers. See page 42.• A FRONTRUNNER OF SUSTAINABILITY. Aarhus wasthe first city council in Denmark to map its CO2emissions, gaining invaluable insights into the potentialsof reduction. The council has a clearly stated goalto be CO2-neutral by 2030, and wind energy plays acrucial part in achieving this. The strategy includes anumber of initiatives: erecting more wind turbines;establishing research and business partnerships; andinvesting further in better exploitation of wind power.One goal is to optimise framework conditions forthe development of the region’s already remarkablewind turbine industry. See page 48.This report is produced by Mandag Morgen in associationwith the City of Aarhus.8 Mondaymorning Aarhus – Capital of Wind Energy 9