Renewable energy policy in Denmark Lene Egeberg-Gjelstrup International Adviser, Energinet.dk
Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
1
Renewable energy in Denmark - responsible authorities Danish Energy Authority
No involvement in definition and/or implementation of renewable energy policy
Danish Energy Agency
Develops and administers legislation
Tenders for offshore wind farms
Approves establishment of renewable installations >10 MW
Energinet.dk (Transmission System Operator)
Supports and develops the electricity market
Calculates and finances support for renewable energy production
Administers a number of R&D programmes
“Front Office” – coordinates the schemes for promoting onshore wind power
Issuing body for Guarantees of Origin for RES-E
Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
2
1
Key figures - Denmark Share of domestic electricity supply
MW 3500
From central to local generation
25%
3000
20%
2500 2000
15%
1500
10%
1000
5%
500 0 1980
0% '85
'90
'95
'00
'05
'09
Wind Power offshore C apacity, MW Wind Power onshore C apacity, MW
Specification of power generation
GWh
Electricity from wind turbines
6,710 20
Electricity from hydropower and photovoltaics Electricity from generation on biomass and biogas Electricity from generation on fossil fuels
Florence - 7 April 2011
3,029 24,531
Lene Egeberg-Gjelstrup, Energinet.dk
3
Danish energy policy: independent of fossil fuels by 2050 1970
Energy agreement 2008-2011 (2008) Up to 2012: 1300 MW of new wind-power capacity ~ 40% increase!
EU 20-20-20 target – 30% renewables In 2020, the power system may have to handle 50% wind-power
Green energy – the road to a Danish energy system without fossil fuels in 2050 (2010) The Danish Commission on Climate Change Policy concludes that transition to a fossil fuel independent society is a real possibility
Energy Strategy 2050 (2011) The Danish Government: ambitious strategy for achieving independence from fossil fuels
Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
4
2
The Promotion of Renewable Energy Act, 2008 Subsidies for generation of renewable electricity -
Price premiums Fixed feed in tariffs
Offshore wind power sites 4.6 GW available
Tender for offshore wind parks Promotion of onshore wind -
Four new schemes
Decommissioning scheme for wind turbines Funding for small RE technologies Map showing information on windmill projects
Florence - 7 April 2011
5
Lene Egeberg-Gjelstrup, Energinet.dk
Estimated development of the general renewable energy share in Denmark
RES directive target
Blue: EU measurement of RE share Red: Expected RE share
”Energy strategy 2050”: 33 % in 2020 Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
6
3
Subsidies in Denmark € cent/kWh
€ cent/kWh
Time
Time
Onshore wind farms
Offshore wind farms -
Tender process
-
Payment = Market Price + Price premium
-
Fixed Payment = Market Price + Subsidy
-
Price premium: 3.35 € cent/kWh for 22.000 full load hours + 0.31 € cent/kWh for balancing costs
-
May also choose a decommissioning certificates of either 1.6 or 1.1 € cent/kWh
Fixed payment for existing offshore wind farms: Horns Rev II: 6.95 € cent/kWh (50.000 full load hours) Rødsand II: 8.44 € cent/kWh (50.000 full load hours)
Biogas and biomass -
Payment = Market Price + Price premium Price premium: 10 € cent/kWh for biogas and 2.01 € cent/kWh for biomass per kWh.
Florence - 7 April 2011
7
Lene Egeberg-Gjelstrup, Energinet.dk
Market based subsidies for the future € cent/kWh
No subsidies when prices become negative
Time
Newly approved Danish offshore wind mill park “Anholt” Fixed payment: 14,01 € cent/kWh
400 MW
Payment for 20 TWh
2012-2013
Negative prices at Nord Pool Spot => No subsidies (max 300 hours)
Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
8
4
The Danish Commission on Climate Change Policy “Green energy – the road to a Danish energy system without fossil fuels” – September 2010
Key elements to obtain long term vision
Offshore wind turbines
Biomass
Electric heat pumps
Intelligent energy systems
The transport sector
Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
9
The Danish Government: “Energy Strategy 2050” By 2020 a significant increase in renewable energy from wind, biomass and biogas
62 % of electricity generation from renewable sources
33 % share of renewables in energy consumption
-
wind power capacity 42 % of overall energy production capacity
Suggested initiatives include 600 MW offshore wind farm at Kriegers Flak 400 MW near shore wind turbines 500 MW new onshore wind turbines Support development of minor technologies Power plants to convert to biomass
Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
10
5
Efficient integration of more RES-E in Denmark (1) Well functioning day-ahead, intraday and cross-border balancing markets -
Market coupling projects between NordicCWE regions
-
Intraday projects
€ cent/kWh
Flexibility of market participants to provide the necessary system services Time
Florence - 7 April 2011
-
Market based support schemes
Lene Egeberg-Gjelstrup, Energinet.dk
11
Efficient integration of more RES-E in Denmark (2) Large grid investments necessary between today and 2020 -
Skagerrak 4, Cobra cable, Kriegers Flak
Söderåsen
Gørløsegård
Barsebäck Hurva Sege
Hovegård
Kruseberg
Herslev Storebælt Kingstrup
Bjæverskov
Fraugde
Rislev
Baltic I
Radsted
Kriegers Flak
Kontek Rødsand Audorf
Kiel Lüdershagen
Baltic Line Rostock Bentwisch Herrenwyk Lübeck Siems
Florence - 7 April 2011
Güstrow
Lubmin
Siedenbrünzow
Lene Egeberg-Gjelstrup, Energinet.dk
12
6
Support schemes – a European view Support schemes are a main driver for RES investments Member States will be focused on achieving national targets -
Risk that the level of national support will increase excessively
-
Location of RES installations conditional on support and not demand/ need of the system
Move towards a pan-European approach- a more cost efficient development -
Convergence between national support schemes
-
Improve design of support schemes
Florence - 7 April 2011
Lene Egeberg-Gjelstrup, Energinet.dk
13
7
