Wind Energy in Denmark - experience and ... - Ea Energianalyse

ea.energianalyse.dk

Wind Energy in Denmark - experience and ... - Ea Energianalyse

Wind Power in DenmarkSteffen NielsenHead of SectionDanish Energy AuthorityMinistry of Climate and Energy


Outline• Status on wind power deployment andlarge scale integration• Support system and consent model• Strategic assessment for future off-shorelocations• Overview on the environmentalprogramme for Horns Rev and Nysted


Advantages of Wind Power• Security of supply• Energy importalleviation• Export• Employment• Environment• i.e. climate changemitigation• thus alsoconservation ofbiodiversity


Key Instruments to promote REHistoric perspective• Public support to research, development anddemonstration of RE-technologies• Investment grants for standardized RE-equipment• Favourable prices for electricity fed into the publicgrid• Tax incentives• A suitable legislative and planning framework -supporting the local initiative• Agreements between the Government and theutilities: Wind power programmes and biomassagreement


Danish Wind Power IndustryThe Danish wind turbine industryemploys about 21,000 persons, witha turnover for around € 5bn/year(2006)Most of the turbines are exportedand today Danish wind turbineindustry serves around 40% of theworld market in terms of turnover


Wind Power ProductionInstalled capacity app. 3.100 MWof which app. 420 MW is placedoffshoreNational averageat normal wind conditions 20% ofelectricity demandWestern Denmark2004 - 23%National average2006 - 17%National averageJanuary 2007 - 36%Western DenmarkJanuary 2007 - 41%


Challenge: To Feed the Grid with Wind Power(Western Denmark as an example)


Large scale integration• Denmark has good connection to base load• Nord Pool – level playing field• Short gate closure times to allow trades close toreal time• Guarantee the transmission and distribution of REelectricity• Further integration is possible• Storage, demand side management and marketdriven use of decentralised heat and power asfuture options


New Danish Energy Strategy in 2007and New Political Agreement in 2008• 19 January 2007: The Danish government presented a newlong term energy strategy. 21 February 2008: New politicalagreement.• New ambitious targets:• Reduce the use of fossil fuels by at least 15% in 2025.• The share of renewable energy shall increase from 15.6%in 2006 to 20% in 2011 and minimum 30% of total grossenergy consumption by 2025.• Energy saving efforts will be increased with a view toreduce the gross energy consumption by 2% in 2011 and4% in 2020 compared to 2006.• Forthcoming EU targets on RE in 2008 for 2020.• New Danish support measures for renewable energy.


The initiatives on better terms for wind turbines inthe energy policy agreement• A renewable energy law to create greater transparency withrespect to the legislative framework for the use ofrenewable energy.• Better subsidy terms for new wind turbines on land• Follow-up of re-powering regulations• Wind planning in the municipalities, including a green fundfor restoring nature• 10 million DKK guaranteed financing of local windmillguilds' preliminary studies, etc.• Possibility of economic compensation to neighbours for lossof property value due to new wind turbines.• Possibility of local joint ownership• New offshore wind parks in 2012 ; tender for 2 times 200MW late 2008.• Action plan for developing offshore wind turbines.


In 2012Denmarkwill be on the list of countrieswith more than1200 MW offshore


16 years of experience offshore• First Danish offshore wind farm1991• Strategic mapping 1995• Capacity now 423 MW. (Total3100 MW)• Tenders for 2 x 200 MW windfarms to be established in 2009and 2011 on track• Arriving at app. 850 MWoffshore• Aim to bring down financial risk• 400 MW to be tendered in 2008• Strategic assessment for futurelocation of 4600 MW offshorewind power


TenderingAim to bring down financial risk• Screening for site suitability (2003)• Tender: Fixed price in 50.000 full load hours• TSO to finance, construct and operate transformerstation and sea cable• TSO obliged to connect wind power and expand grid ifnecessary• Security that grid connection is available in due time• Financial compensation if the power produced iscurtailed• One stop shop communication


One stop shop consent procedurePoliticaldecisionLicence to produceelectricityTender foroffshore windfarmConstructionconsent withconditionsConcession isgranted to thesuccessful tenderLicence topreinvestigate sitesEnvironmentalImpactAssessment


Support scheme for offshore• Tender – Cheapest, fastest and mostbeautiful• Fixed price in 50.000 full load hours• = 10-15 years of production• Low bid for Horns Rev 2 = app. € cent7 per kWh• Premium financed as PSO added ontop of market price


Preparing for the future 2025• 23 sites of 200 MWidentified• 4600 MW• Equivalent to 8 % oftotal demand or 50%of electricity demand• Consultation answersis taken into account• A sensitivity analysisis too be conductedand used in thedecision-makingprocess for the actualsite selection


Horns Rev• Wind resource:• 10.1-10.3 m/s at 100 m• More than 4000 fullload hours• Water dept:• 10-25 m


Conclusions from the Environmentalprogramme• Public acceptance• Migrating birds avoidcollision• Seals behaviour notaffected• Harbour porpoisesreturn to the sites• Significant artificialwreck effectobserved


In conclusion• Large scale integration possible• A doubling of offshore capacity on trackfor 2009-2011• Tender procedure combined with TSO-gridfinancing and one stop shop brings downfinancial risks• Future locations identified• Environment no problem if sites areplanned properly


Thank you for your attentionSteffen Nielsensrn@ens.dkwww.ens.dk/wind

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