Towards 100% RE in Denmark in 2050 Jakob Jespersen Danish Energy Agency Hai Phong, 17 December 2013 – the role of wind energy

Energy Policy Decoupling Economic Growth and Consumption -25% -1% +38% GDP - fixed prices Gross Energy Consumption GHG emissions

Danish Wind Energy timeline s War in Middle East causes oil prices to triple. (1 st oil crisis). Denmark’s energy consumption 90% oil-import. Danish people vote against Nuclear power First electricity producing wind turbines by Danish NGOs 1980s Electricity and oil taxes and subsidies for energy savings and sustainable energy. Independent power producers on renewable energy are secured a price of 15 UScents/kWh for electricity (for a limited period) – causing farmers to set up wind turbines, and private wind turbine cooperatives arise. Denmark become the leading wind turbine industry First large scale national Windturbine plan of 100 MW

Danish Wind energy timeline (2) 1990s Focus on reducing CO2 emissions, CO2 taxes introduced 1995 European liberalized electricity market. Danish electricity companies divide into regulated transmission company and commercial production companies. Plan for 200 MW new wind turbines (900 MW in 2005) First plan for Wind turbines at sea, 750 MW. IPP Renewable energy tariff lowered to 10 UScents/kWh Danish energy technology export has tripled Self-sufficient with energy, and electricity exporter due to oil, gas, coal, large scale wind energy and successful energy savings and energy efficiency programs.

Wind Power: Capacity and Share of Domestic Demand

Centralisation to decentralisation

Key Policies to Promote A New Energy Model Historic perspective  Long term strategies based on broad political agreements in the Parliament prevent stop-go policies = Confidence building measures for businesses and investors  A suitable legislative and local planning framework, which supports the local initiative and creates predictability  Cost-effective subsidy schemes with evaluation on a regular basis, avoiding over-subsidising (of favourable electricity prices and investment grants in start-up phase)  Energy taxes on fossil fuels makes RE more competitive and use of fossil fuels more energy efficient  Dialogue with sector stakeholders ensuring ambitious and realistic targets, as well as well functioning regulation  In short: A combination of an effective state and the market!

The Danish Government’s Vision for the Future Energy Mix in Denmark  2030: No coal in Danish power plants  2035: Electricity and heating 100% from RE  2050: 100% RE in all sectors (including transport).

The short-term: Policy Targets for 2020 Agreed by 95% of Parliament members in March 2012

Wind Power: How to reach 50% of electricity by 2020 From 4,500 MW in 2013 to 6,500 MW in 2020 by adding:  500 MW wind turbines near the coast  500 MW onshore wind turbines (1,800 MW replace 1,300 MW old turbines)  1,000 MW offshore wind turbines  Comprehensive strategy for Smart Grids

One stop shop The Danish Energy Agency is the coordinating authority Environmental Impact Assesment Detailed project construction commissioning Project approval Production approval Tender

New Offshore Wind Projects in Denmark Horns Rev 3: 400 MW Kriegers Flak: 600 MW Tender for 450 MW near shore wind farms 50 MW turbines for research and development

Coping with variable generation (Western Denmark as a historic extreme)

Integration of wind power Strong interconnectors A well functioning international market for electricity Flexible electricity consumption

PJ Cooperation on electricity exchange in the four Scandinavian countries Denmark, Sweden, Norway and Finland started more than 100 years ago Today cooperation has evolved into one single international electricity market where electricity is traded independent of national borders.

The Nordic Electricity System Generation 2010: 367 TWh

Subsidy Schemes Onshore 0,25 dkk/kWh + market price ( full load hours) Grid connection socialized Large-scale offshore Public tender 0,50 dkk/kWh, 0,63 dkk/kWh, 1,05 dkk/kWh (50 GWh/MW) TSO to construct offshore platform and connection to grid Near Shore / Small-scale offshore Was: 0,25 dkk/kWh + market price ( full load hours) Now: Tender procedure Responsible for offshore grid. Grid company responsible from shore.

Grid connection 2 models for connecting offshore farms:  For farms being tendered by State the TSO is obliged to connect at farm offshore to transmission grid onshore  High voltage cable & offshore transformer platform  Costs are covered through the transmission tariff by all customers  Necessary reinforcements of onshore transmission grid is accounted for separate  Investor to receive payment even when cable is out of operation  For other projects the grid company is obliged to connect at shore  Investor is responsible for cabling offshore  Grid company’s costs are transferred to the national system operator as a public service obligation and also by all customers

Other Initiatives to Reach the RE Goals  Electricity and biomass in Transport  Subsidies for recharging stations (EV) and infrastructure (hydro and gas)  10% biofuels by 2020  New strategy for plug-in hybrids etc. by 2013  Better framework conditions for Biogas  Better and new funding schemes  Increased capital installation subsidies  More renewable energy in Industry  Increase of RE in process  Promote more industrial CHP TRANSPORT BIOGAS INDUSTRY

De-linking Economic Growth, GHG and Energy Consumption: New Energy Agreement (March 2012) Economic forecast Impact on energy consumption and GHG-emission

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