White papers for a green transition
WIND ENERGY MOVING AHEAD How Denmark utilises wind in the energy sector
INSIDE THIS WHITE PAPER Acting the way the industry needs When dialogue, transparency and flexibility become more than just words Denmark to meet 50% wind energy in 2020 Cross-border electricity market and good connections to neighbouring markets ensure first-class security of supply Making offshore wind attractive and accessible to investors Offshore wind projects are politically and financially attractive investments
WIND ENERGY MOVING AHEAD How Denmark utilises wind in the energy sector Version 2.0 Printed October 2015
Front page photo Cover photo showing Anholt Offshore Wind Farm. Photo: DONG Energy Editor in Chief State of Green Technical Editor Danish Wind Industry Association
Danish Energy Agency: Copenhagen Infrastructure Partners: Danish Energy Association: Danish Ministry of Energy, Utilities and Climate: Danish Business Authority: Danish Wind Industry Association: Energinet.dk: Middelgrunden Wind Turbine Cooperative: Siemens Wind Power: Vestas Wind Systems:
Contributors Morten Bæk, Peter Sehestedt and Torsten Malmdorf Christina Grumstrup Sørensen and Stephanie Bendorff Røpcke Lars Aagaard Lars Christian Lilleholt Niels Bjørkbom Jan Hylleberg Peder Østermark Andreasen Erik Christiansen Michael Hannibal Anders Vedel
To order copies of this white paper or receive information about other related publications, please contact State of Green at
[email protected].
© Copyright State of Green 2015
Foreword
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A FUTURE OF WIND ENERGY The global market for wind energy is gaining ground as wind technologies are getting more and more sophisticated and competitive
Lars Christian Lilleholt Danish Minister for Energy, Utilities and Climate
With more than 40 years of experience and a world-class energy sector, Denmark is uniquely positioned to play a key role in the future market for wind technology. Since the oil crisis in the early 1970s Denmark has moved towards a national energy system that is more and more reliant on renewable energy sources, with wind energy playing a key role. The global demand for energy is expected to rise dramatically in the coming years. Wind energy will undoubtedly be an important part of the solution to this and connected challenges related to climate change and security of supply. From 2000 to 2013 global installed wind power capacity increased with an average growth rate of 25% per year. According to the IEA wind energy could account for 8% of the global generation mix in 2040.
Largest share of wind in the world Denmark has a total installed wind energy capacity of more than 5,000 MW and on windy days, wind turbines produce more than the domestic Danish demand. Furthermore, Denmark is the country in the world with the largest share of wind integrated in the grid. This means that more and more countries - developed and developing - are looking towards Denmark for inspiration and cooperation. We shall continue to use this unique position to generate more sustainable economic growth and jobs in both Denmark and abroad. A world class wind energy sector Danish wind companies belong to the top league globally. In 2014, the Danish wind sector’s export reached DKK 53.5 bn (EUR 7.1 bn). Almost 17% more than the year be-
fore. Furthermore the wind energy sector employed more than 28,000 people. Wind turbines have undergone considerable technological advances and wind has become one of the most competitive renewable energy systems. This is the result of investments and the work and commitment of several innovative companies backed by world leading research and knowledge institutions and unique test facilities. But global competition is fierce and new and innovative technologies are gaining ground. We should therefore ensure good framework conditions and world class research and innovation facilities so that the Danish wind energy sector will continue to be a global front-runner in the future.
ABOUT THIS WHITE PAPER In this White Paper we have gathered lessons learned from different Danish players and legislators within the wind energy sector, supported by state-ofthe-art case examples showing, for instance, how we work with integrating wind, invest in wind and optimise products to make more energy for less money. Denmark has decided to lead the transition to a green growth economy and become independent of fossil fuels by 2050. Completely dependent on imported oil for decades, Denmark was severely affected by the oil crises of the 1970s and it was decided to take a new path. As a result, renewable energy – and in particular wind energy – has become a Danish stronghold. The content of this White Paper is meant to serve as a helpful tool for international stakeholders who wish to get an overview of the Danish way of utilising wind, who want to spot the potentials of wind energy, or who are looking for Danish business partners. Integrating 10, 20, 30, 40 or 50% wind energy or even more in the electricity system is no easy task just as agreeing on the political framework for large investments and getting the citizens on board for new projects is not something easily achievable. But with this White Paper we want to show you that it is feasible through collaboration. We hope you will be inspired.
INDEX Wind is a major part of the solution....................................................................................... 3 There is no status quo in the wind industry....................................................................... 6 Cost reductions and alliances are keywords in the Danish wind industry Acting the way the industry needs........................................................................................ 8 When dialogue, transparency and flexibility become more than just words Denmark to meet 50% wind energy target in 2020.....................................................10 A cross-border electricity market and good connections to neighbouring markets ensure first-class security of supply Electrification equals value from wind energy............................................................... 12 Why electrification is necessary for the Danish energy system Bringing the neighbours on board........................................................................................14 A specialised wind turbine task force is assisting the planning process of onshore wind projects Do you speak wind turbine?....................................................................................................16 Denmark from above.................................................................................................................. 17 Case studies The world’s most depicted offshore windfarm is 50% locally owned.................................. 18 Denmark – a pioneer in wind energy............................................................................................ 20 Østerild test centre ensures Siemens Wind Power a competitive offshore advantage.........22 Advanced nacelle testing integral part of Vestas product development............................... 24 Making offshore wind attractive and accessible to investors................................................ 26 Sustainable wind export business .............................................................................................. 28 Selected examples of danish footprints in offshore wind ..................................................... 30 Denmark - the supplier hub .......................................................................................................... 31
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There is no status quo in the wind industry
Photo: Keenpress / Wind Power Works
There is no status quo in the wind industry
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THERE IS NO STATUS QUO IN THE WIND INDUSTRY
Cost reductions and alliances are keywords in the Danish wind industry Companies in the Danish wind industry are at the very forefront of the global wind expansion, driving the continuous development of evermore effective and cost-efficient wind turbines Jan Hylleberg, CEO, Danish Wind Industry Association
What few people believed 40 years ago is now a reality with a booming global industry. Over the years, the wind industry has fine-tuned its ability to harvest energy from the wind in a controlled manner that benefits millions and millions of people. The groundwork for much of the technological development has taken place in Denmark. Today, nearly 500 companies work within the Danish wind energy sector, generating more than 28,000 jobs including the whole supply chain (2014) and combined revenue of DKK 84.4 bn (EUR 11.31 bn) of which more than 60% is exported. The Danish wind industry accounts for 5.2% of the total Danish export in 2014; this is the highest level since 2008-2009. More energy for less money Even though the Danish wind industry has developed into a highly professional and well-established one, the objective has remained the same since the beginning. At the core, all work evolves around reducing the Levelized Cost of Energy (LCOE) - the price of the electricity production over the
lifetime of a wind turbine. The wind industry has come far and the technology holds huge potential for becoming even cheaper. While the price of wind energy continues to decline, investments are going up. Proof of this is found in Europe, where wind energy was the favoured energy technology in 2014, with a grid connected wind energy supply more than double that of coal and gas combined. Danish companies are driving the development of a lower LCOE. Strong cross-industry cooperation along with unique testing facilities are creating the foundation for an innovation hub found nowhere else in the global wind industry. Today, energy from onshore wind turbines is cheaper than energy from new fossil energy plants in many markets, including Denmark, and across the industry efforts are put into reducing the cost of offshore wind in a similar manner. Producing energy offshore requires a new way of thinking and this has led to a new way of organising the industry in Denmark.
Alliances are vital Abandoning the idea of wind turbine manufacturers dealing with all of their sub-suppliers, the industry is now moving towards organising in clusters offering concentrated and packaged solutions. This entails an even closer collaboration between Danish wind turbine manufacturers and clustered sub-suppliers, enhancing manoeuvrability and the ability to innovate. This development is evidence of the continuous professionalisation of the Danish wind industry that acts as a strong competitive advantage - only to be developed further in the coming years. With wind energy having one of the greatest potentials for integrating more renewable energy across the world, it is unthinkable for the Danish wind industry just to maintain the status quo. The wind industry is facing before yet another era of progress that will benefit not only job creation and energy security, but also people and climate.
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Acting the way the industry needs
The industry-friendly Danish tender approach for setting up offshore windfarms is a result of many adaptations over time. It consists of three parts:
A strategic offshore planning process with transparent tender procedures A guaranteed timely establishment of grid connection A fixed settlement price and the one-stop-shop permitting procedure
Photo: Danish Energy Agency
Acting the way the industry needs
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ACTING THE WAY THE INDUSTRY NEEDS
When dialogue, transparency and flexibility become more than just words
On the path to becoming a nation independent of fossil fuels with large amounts of wind energy in the electricity grid, having the right political framework plays a major role. Denmark leads the way in making political decisions that the industry needs. But how did we get to this point, and what are the big challenges that still remain? Peter Sehestedt, Special Advisor, Danish Energy Agency
Denmark has set ambitious political targets for the use of wind energy. In 2010, the Danish Commission on Climate Change Policy presented its recommendations for the total phasing out of fossil fuels. Set in place in 2012, the current energy agreement includes a target of applying 1,900 MW of new capacity from onshore and offshore wind. By the end of 2021, this capacity needs to be realised. As a result, wind energy is expected to cover 50% of Danish electricity consumption in 2020. The agreement secures a substantial expansion of the Danish wind energy capacity offshore, near-shore and onshore. The offshore expansion alone corresponds to the annual electricity consumption of 1.4 million average Danish households. The first step to establish more offshore wind farms is a strong and smooth planning phase, which reflects the importance of flexibility in the tendering processes, just as the ability to conduct dialogue with the market and to learn from experience is paramount for success. Only then can the authorities attract the most competitive bids for these complex projects which carry large economic commitments and which are influenced by political currents. Tenders that work The Danish Energy Agency has strived to develop a scheme that delivers on these parameters. As such, the Danish tendering approach for setting up offshore wind farms is the result of many adaptations over time. In fact, Denmark has the longest experience with tenders for offshore wind
energy in the world. The strength of the Danish approach can be divided into three areas. Firstly, a strategic offshore planning process with transparent tender procedures and fully consented environmental impact assessments in place before the submission of tenders. Secondly, a timely establishment of grid connection guaranteed by the Danish state and paid for by the electricity consumers. Thirdly, a fixed settlement price and a unique one-stop-shop permitting process, in which the Danish Energy Agency grants all the required permits and coordinates with other relevant public authorities. Dialogue as a new Danish trademark In the offshore market change is a constant and each tender is different from the next.
What we have learned is that the tendering authorities need to speed up on their learning capacity. If we want to ensure the best possible market prices and projects in our tendering procedures, we have to be part of the changes more or less at the same time as they happen. This is why dialogue has become the new trademark of the Danish tendering procedures and why the Danish Energy Agency is promoting a vision where authorities and industry act like equal partners. Our goal is to share this vision with all major offshore countries and we invite all tendering authorities in Europe to start a dialogue of their own. Ultimately, this dialogue has the potential to create a new network of governance and help establish a common vision of offshore tendering in the European market.
One-stop-shop means full speed ahead The Danish tendering process is unique, and the one-stop-shop permitting procedure plays a central role in this. To ensure a rapid and as-little-as-possible bureaucratic application process, the Danish Energy Agency grants all the required permits and coordinates with other relevant public authorities. This results in a single point of access for enterprises or industry in need of assistance on issues related to permits and tendering procedures – and this is one of the political framework conditions leading Denmark towards a future as independent of fossil fuels.
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Denmark to meet 50% wind energy in 2020
Photo: Palle Peter Skov
Map of Denmark’s transmission grid and interconnectors Denmark’s transmission grid (400 and 150/132 kV) and the interconnectors to Germany, Sweden and Norway. Interconnectors have a total capacity of more than 5,500 MW. The transmission grid is designed to handle long fluctuations and transport electricity over large distances, e.g. from on- and offshore wind farms in the west to the Danish capital in the east. Denmark often acts as a transit country, enabling power from Norway’s hydroelectric dams to be sent to Germany and Central European consumers or the other way around, if wind turbines and solar cells generate energy that Norway wants to buy.
Denmark to meet 50% wind energy in 2020
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DENMARK TO MEET 50% WIND ENERGY IN 2020
A cross-border electricity market and good connections to neighbouring markets ensure first-class security of supply “We are in the process of transitioning from an energy system where generation is adapted to consumption to one where consumption is adapted to generation” Peder Østermark Andreasen, CEO, Energinet.dk, the Danish TSO responsible for supplying Denmark with electricity and natural gas
“It can’t be done”. “It’s not possible to integrate more than a few per cent wind energy in an electricity system”. These are words we sometimes hear when foreign visitors visit Energinet.dk. However, when we open the door to our control room and show them that we on any given day have 20, 30, 40% wind energy or more in our electricity system, we are not presenting them with a theoretical calculation or a case story. What they see is a quiet control room without panic and the electricity system that supplies Danish households and businesses with electricity – which has one of the highest levels of security of supply in Europe. This is possible because Denmark has a well-developed electricity grid and strong connections to our neighbouring countries Norway, Sweden and Germany (see map). 50% wind in 2020 and more to come We are making good progress to meet the objective that wind energy will cover 50% of the Danish electricity consumption. In 2014, the figure was 39.1%, and with the wind energy generated by future offshore wind farms in particular, we will reach the equivalent of 50% wind energy in electricity consumption. Denmark does not have mountains, rivers or many hours of sunshine, but we have wind and a unique location. Wind energy is one of Denmark’s most remarkable renewable energy sources and it will become even more important after 2020. Looking
towards 2035, for example, there will be many more days where wind energy generation will exceed our consumption. From generation to consumption We are transitioning from an energy system where generation is adapted to consumption to one where consumption is adapted to generation. That is why electricity must be able to flow far, across borders and in large quantities. The prices must reflect the fact that there are days with ample generation or high demand, and electricity must increasingly be integrated into flexible consumption, such as heat pumps and electric vehicles. Only by taking a cross-border approach and ensuring maximum utilisation of domestic flexibility will we be able to secure an effective and successful energy transition. New interconnectors To be able to handle this, we have joined forces with TenneT, TSO for power and gas in Netherlands and Germany, to build a 700 MW and 320 kilometre submarine cable linking the Dutch and Danish electricity systems - and together with the National Grid, TSO for power and gas in England, we are looking into the possibilities of laying a 600 kilometre cable to the UK.
Central Europe. Even though we as consumers do not notice the changes, we buy and sell electricity across borders hour by hour. Electricity generated by wind, water, sun, coal, gas and nuclear power flows freely back and forth depending on supply and demand. But the future requires even more open ness and cross-border thinking. A well-functioning market is crucial if Denmark and the rest of Europe are to maintain a high level of security of supply. New market model With increasing amounts of renewable energy, the current business model for electricity is put under pressure, where especially conventional generators based on fossil energy sources are challenged. In the long term this creates a risk of insufficient capacity during future periods with limited renewable energy available, e.g. during periods without wind. We have therefore invited industry players to a sector-wide cooperation with the aim of developing a new market model that will help ensure a high level of security of supply and contribute to a healthy investment climate in the energy sector, and furthermore encourage interaction and flexibility across the value chain.
Today, Denmark is part of a cross-border Nordic market, and we are integrated with
2035
2013
Wind production and power consumption 2013-2035 Today, wind rarely exceeds the total power consumption. In the future this will happen more often. Here shown in three weeks in 2013 and three weeks in 2035.
Week 1
Week 2
Electricity consumption
Week 3
Week 1
Week 2
Week 3
Electricity generation from wind turbines
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Electrification equals value from wind energy
Flexible production requires flexible consumption and a strong underlying system Clean electricity from wind turbines can be used to substitute CO2-emitting energy consumption in the heating sector, in industry and in households. This benefits the environment and the climate but in order to reap the full value of wind energy, we need to focus on a better utilisation of it. Integrating large volumes of wind energy into the energy system has proven possible, but wind is dependent on a strong back-up system and good market conditions for selling electricity via interconnectors and flexible electricity usage.
Electrification equals value from wind energy
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ELECTRIFICATION EQUALS VALUE FROM WIND ENERGY
Why electrification is necessary for the Danish energy system Danish electricity generation will consist of at least 50% wind energy in 2020. This requires a focus on electrification and Denmark needs to address the challenge of smart energy Lars Aagaard, CEO, Danish Energy Association
Danish electricity generation has undergone significant changes during the last two decades and Denmark is on the cutting edge when it comes to integrating wind energy into the electricity system. Wind is a positive story already 20 years ago the Danish electricity production consisted of 96% fossil fuels, which emitted 30 million tons of CO2. In 2013, these numbers had changed to 54% fossil fuels, resulting in a 55% decrease of the CO2-emissions. So far, the increasing wind share has not changed the continuity of supply. In 2013, Danish electricity consumers had electricity in their power outlets 99,997% of the time. The potential for electrification Even though we use most of the electricity from wind in households, industry, for electrical cars and in heat pumps in the heating sector, the transformation of the electricity system moves much faster than the electrification of the energy consumption. The electricity consumption is expected to grow by 3 TWh until 2020, while the new wind production is expected to grow by 6.5 TWh.
Obviously, wind energy is a fluctuating production form. Given the rapid build-out it needs to be accompanied by further incentives to use and store the electricity when it is produced and a strong backbone of flexible power generation is also required. The curves in the figure illustrating development of electricity consumption and wind energy production 2014-2020 clearly show that the expected expansion of wind production exceeds the changes in electricity consumption. There is a clear mismatch between the growth of the two, which – given the flexible nature of wind energy – needs to be addressed, if we are to make the most value of our wind energy production. The Danish Energy Association has calculated the technical potential of electrifying the end consumption in the district heating sector, the individual heating sector and in the industry. The potential comes out at approximately 13 TWh/year, which is more than a third of the current Danish electricity consumption. In other words, there is a potential for utilising all new wind production in a flexible manner, creating more value for the Danish wind model.
Combined with strong, available interconnectors to neighbouring countries, a backbone of power generation plants and a fast development in bringing down costs for electricity storage, we are confident that we can continue the wind expansion and use the fluctuating production in an intelligent way. In order for that to happen we need to see Danish legislators consider and decide upon difficult political issues such as securing continued back-up capacity from power plants, an intensified electrification of the Danish energy system and constraints on interconnectors. Denmark has led the way and will continue to do so by showing the world that it will be possible to introduce more than 50% wind energy into the electricity system. But we need to take the necessary measures to guarantee the continued balance of the electricity supply and to create maximum value of the wind’s changing production levels. Keywords for that to happen are interconnectors, flexible electricity use and reliable backup production when wind is absent.
Development of electricity consumption and wind energy production 2014-2020 160 140 Source: Danish Energy Agency
120 Index 2014 = 100
100 80 60 40 Electricity consumption (index)
Wind energy production (index)
20 0
2014
2015
2016
2017
2018
2019
2020
Development of electricity consumption and wind energy production 2014-2020 Wind energy produced 3% of the electricity consumption in 1994. In 2014, this number had increased to 39.1% and by 2020 at least half of the electricity consumption will be delivered by wind turbines. The general electricity consumption is expected to grow at a much slower rate.
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Bringing the neighbours on board
www.vindinfo.dk – a Danish shortcut In 2012, a national committee issued recommendations for what to focus on in order to optimise the planning processes for wind project developments. A central point was improved public access to information. In response to this, four agencies have gathered all available governmental information about wind energy in Denmark on one website: www.vindfo.dk. This way, citizens, local authorities, and wind project developers have easy access to information.
The introduction of task forces The Danish Wind Turbine Task Force is a new concept within the Danish public administration. Free of charge, the task force assists local authorities in matters such as siting the turbines and the planning process. Public acceptance is the key to deflect the problems that can occur when planning new onshore wind farms. Photo: Lia Maria Hauch Kaufmann
Bringing the neighbours on board
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BRINGING THE NEIGHBOURS ON BOARD
A specialised wind turbine task force is assisting the planning process of onshore wind projects
Schemes focused on citizens and close municipal and state collaboration regarding citizen involvement are just some of the approaches that Denmark takes in order to meet its ambitious targets for CO2-reduction and the advancement of more renewable energy Niels Bjørkbom, Head of the Wind Turbine Task Force, Danish Business Authority
The 1970s energy crises in Denmark and the rest of Europe sparked an increased interest in renewable energy. During the 1970s, the first wind turbines, less than 50 meters tall, were installed all over the country through local initiatives with no general planning and often through citizen initiated wind turbine cooperatives. Today, onshore wind turbines as high as 150 meters are installed on a commercial scale, which requires larger areas and substantial investments. These kinds of wind turbines are often erected and owned by people living far from the wind turbine areas and that is one of the reasons why it has become increasingly difficult to achieve local acceptance of wind energy projects. A complicated process In Denmark, local authorities are responsible for planning onshore wind turbine installations, and the planning processes are often long and complicated. In some municipalities, local politicians stop the planning activities at relatively late stages, due to local public opposition against installing wind farms in the specific area. This is a problem, firstly, because it often results in frustration and local division Step 1 Invite stakeholders
Step 2 Establish workshops
between opponents and supporters of wind energy. Secondly, because one of the paths to becoming free of fossil fuels, as written in the political energy agreement from 2012, is by installing 1,800 MW of new onshore wind capacity before 2020 - 1,300 MW of which are expected to replace existing, aging wind turbines. Wind Turbine Task Force and state assistance In order to assist local authorities with these challenges, a Wind Turbine Task Force was established in 2008. Furthermore, four financial incentive schemes were introduced a year later. These initiatives both aim to increase local interest in and support for the installation of new, modern wind turbines. An important role of the task force is to solve problems as early as possible and assist the local authorities with the planning process. Citizen involvement takes up an increasingly larger part of the planning process. It is our experience that a good relationship between citizens and the municipality is a crucial aspect in achieving acceptance of new wind turbine Step 3 Network meetings
Step 4 Network activies and results
Network topics
Citizens
Network meetings
Network meetings
Secreterial function
Visiting wind turbine sites, enhancing dialogue
Secreterial function Input on decision on wind turbine plant
Business community
Authorities
Source: Antropologerne
Network meetings
Secreterial function
Network meetings
Secreterial function
Growth potential for community development
projects. Interviews show that many Danish citizens are unhappy with the way planning activities have been carried out previously. Therefore, we have worked on finding new ways to meet the public and to get them on board at early stages in the planning process. The figure illustrates how the citizens meet the authorities and business community at an early stage in workshops and various networking activities. These include public meetings with display boards, discussion forums and visits to existing and potential wind turbine areas. Traditional citizen meetings usually only include presentations by experts and panel debates and come late in the planning process. Through our work it has become clear to us that municipalities must be more proactive and direct in meeting the public. So far, feedback from participants has been a call for clear, political statements when it comes to setting up onshore wind farms.
1.Invite stakeholders: Ideally citizens should be invited as a first step in a planning process to participate in a debate about wind turbines within their local community to kick start the planning process of locating areas suitable for possible wind turbines. 2.Establish workshops: Citizens and other stakeholders with different opinions are empowered through constructive dialogue in a workshop. 3.Network meetings: Network groups on topics preferred by participants can be formed in the workshops. 4.Network activities and results: Participants get to know and understand each other better, qualified input to municipal planners and political decision makers, participation in field-trips, bottom-up thoughts etc. This creates an earlier dialogue and increases citizens understanding and acceptance of the need for new wind turbines.
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Do you speak wind turbine?
DO YOU SPEAK WIND TURBINE? As a rule of thumb, every MW installed offshore generates enough electricity for roughly 1,000 Danish households per day.
Blade
The share of wind in the Danish electricity consumption has increased steadily during the last years: 30% in 2012, 33% in 2013 and 39% in 2014. Hub In 2013 and 2014, the average capacity of an onshore wind turbine installed in Denmark was 2.8 MW.
Nacelle
Gear box
The world’s largest wind turbine is currently being tested at Østerild – The National Test Centre for Large Wind Turbines. The turbine has a total height of 222 m, and once installed offshore the power it generates will cover the daily electricity consumption of more than 8,000 average Danish homes.
Generator
In 2014, 860 kW of wind energy were installed per 1,000 Danish citizen. In comparison, this number was 250 kW for the other EU28 countries.
Tower
On the night of July 10, 2015, Danish wind turbines produced 140% of the Danish electricity consumption. The surplus was exported to Sweden, Norway and Germany thanks to the interconnected grid between the countries.
In its lifespan, a wind turbine can produce up to 57 times the amount of energy that went in to constructing it.
Landing platform Different types of foundations:
Transition piece
Foundation
Monopile Tripod Jacket Gravity Suction Jacket bucket suction bucket
Norway
Denmark from above
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DENMARK FROM ABOVE Frederikshavn 7 MW
Sweden
Sæby 200 MW Upon completion in 2015, Denmark’s second largest onshore wind farm will be the 70 MW Klim Fjordholme wind farm
Blaest Blade Test Centre Østerild National Test Centre for Large Wind Turbines Rønland 17 MW 2003
Vesterhav North 200 MW
Anholt 400 MW 2013
Høvsøre National Test Centre for Large Wind Turbines Denmark’s largest onshore wind farm is the 73 MW Nørhede-Hjortmose wind farm commissioned in 2014 United Kingdom
Global Lightning Protection Services Denmark’s third largest onshore wind farm is the 34 MW Lem Kær wind farm commissioned in 2012
Vesterhav South 200 MW Horns Rev 3 400 MW 2019
Samsø 23 MW 2003
Horns Rev 1 160 MW 2002
LORC Lindoe Offshore Renewables Center
nd r la
House of Green Force Technology Danish Technological Institute
Sprogø 21 MW 2009
N
et
he
DELTA DHI
Sejrø Bugt 200 MW
Vindeby 5 MW 1991
s
Horns Rev 2 209 MW 2009
Tunø Knob 5 MW 1995
Middelgrunden 40 MW 2000
Avedøre Holme 11 MW 2009/2010
Smålandsfarvandet 200 MW Kriegers Flak 600 MW 2021
Rødsand II 207 MW 2010
Bornholm 50 MW
Germany
Selected onshore wind farm
Cable connections (Current)
Public Available Test Facility
Offshore wind farm (Commissioned)
Cable connections (Planned)
Place of Interest
Offshore wind farm (Planned)
Cable connections (Proposed)
Near shore area Possible installed capacity
The total Danish capacity onshore equals 3.739 MW
Name of wind farm Capacity in MW Year of commissioning
The total Danish capacity offshore equals 1.271 MW
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Case: The world’s most depicted offshore windfarm is 50% locally owned
Photo: Danish Wind Industry Association
Case: The world’s most depicted offshore windfarm is 50% locally owned
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THE WORLD’S MOST DEPICTED OFFSHORE WINDFARM IS 50% LOCALLY OWNED 8,700 citizens are co-owners of Denmark’s iconic offshore wind farm Middelgrunden, located just off the coast of the capital Copenhagen. Targeted information has played a key role in the local involvement and support for the wind turbines Erik Christiansen, Chairman of Middelgrunden Wind Turbine Cooperative
Set in a symbolic curving line in the waters outside Copenhagen, Middelgrunden offshore wind farm stands as the image of Denmark’s world-renowned renewables sector. The 40 MW wind farm was at the time of commissioning in 2001 the world’s largest offshore wind farm. Today, it covers 3% of Copenhagen’s electricity consumption.
customised cooperative: Middelgrunden Wind Turbine Cooperative. Through the cooperative, almost 8,700 local residents became co-owners of the wind farm and bought together 40,500 shares. In the end, this amounted to a local ownership of 50% of Middelgrunden offshore wind farm. The other 50% of the project is owned by the utility company DONG Energy.
A particularly innovative model of public ownership was used in the construction of Middelgrunden. To establish local acceptance for the wind farm, groups of local residents came together to form a
In the process, the key focus for Middelgrunden Wind Turbine Cooperative was on sharing information with the local residents due to the landmark position of the wind farm just outside the Copenhagen
harbour. It was of great importance to involve the local citizens in all phases from planning and installation to the operational phase. This has proven to enhance the local involvement in the project, as well as the will to invest. Thousands of citizens in Copenhagen have visited the wind farm’s information stands and construction sites and thousands attended the opening of the wind farm in May 2001. The project has proven the necessity of local information to ensure local involvement and support for wind turbines.
FACTS ON WIND COOPERATIVES IN DENMARK The cooperative movement has been part of the Danish story since the first consumer cooperative was created in 1866. Historically, the cooperatives have focused on the agricultural sector through for instance cooperative dairy and slaughterhouses but also cooperative cold stores were common in Denmark in the 1950s. The general ideas behind the cooperatives are that both profits and losses are shared between the members in relation to their company’s turnover, that the cooperative is open for new members and that it is one vote per member at meetings– regardless of the size and turnover of a member. The same ideas are present in the Danish legislation on new wind turbines, which state that at least 20% of the ownership of new turbines has to be offered to citizens as shares of approx. 1000 kWh (annual production). The exceptions include small turbines meant for private households, turbines erected solely for research, test and development and not least wind farms, which are put out to tender by the Danish state - primarily large projects of 400-600 MW. The practise of wind turbine cooperatives started in the 1980s and the following 10-15 years most turbines were erected by the cooperatives. The current law states that the option to purchase must firstly be offered to any citizen above the age of 18 living within 4.5 kilometres from the location of the turbines. Remaining shares are to be sold secondly to other citizens of the municipality in question. The idea behind wind turbines cooperatives and the option to purchase is to create a correlation between the benefits and joy and the inconvenience of living close to a wind turbine.
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Case: DENMARK – A PIONEER IN WIND ENERGY
Photo: Danish Wind Industry Association
Case: DENMARK – A PIONEER IN WIND ENERGY
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DENMARK – A PIONEER IN WIND ENERGY The use of wind as a source of energy in Denmark dates back hundreds of years but the oil crisis of the 1970s lead to a renewed focus on harnessing the natural forces and the entrepreneurial ingenuity combined with a R&D focus has given Denmark a pioneering role in wind
Wind mills and post mills were initially used in the agricultural sector for grinding grains and pumping water but in 1891, the Danish physicist Poul la Cour started experimenting with wind power as a source of electricity. Supported by funds from the Danish state, he created a turbine, which supplied the school he was working at with direct current and he even experimented with storing wind energy. While ingenious, the wind turbine could not compete with the growing number of coal-fired power plants and despite a brief blossoming during the world wars, the development of the technology almost came to a standstill. A renewed focus on wind Highly dependent on imported energy, the oil crises of the early 1970s lead to increasing electricity costs in Denmark. As a result, it became an objective to become independent of imported oil and in the mid-1970s, the Danish state started funding a development program for wind
The development in Danish wind energy technology is remarkable. The first commercial turbines had an output of 22 kW and the blades in the photo, dated 1980, are 7.5 meters long and produced for 55 kW turbines. The blades of the newest offshore turbines are more than 80 meters long. Photo: Erik Grove-Nielsen.
energy. This was followed by a test base for smaller turbines in the late 1970s, as industrious self-builders, grassroots and entrepreneurs had started constructing turbines for their own use. The first commercial turbines with an output of 22 kW were constructed by machinery manufacturers around 1979. As a result, the Danish wind energy story has been one of both a bottom-up and a top-down approach – and the strategy has paid off. Harnessing the wind offshore In a search for more efficiency and a lower cost of energy, the size of the turbines has grown steadily over the years and while most turbines in the early 1990s had sizes of up to 225 kW, the next generation of wind turbines now reaches 8 MW. The larger turbines makes it economically feasible to harness wind offshore, where the wind speeds makes up for the larger expenses. In 1991, the world’s first offshore wind farm was erected in Denmark, when eleven
450 kW turbines were commissioned. Many more offshore wind farms has seen the light of day since 1991 and the next Danish offshore wind farms, Horns Rev 3 and Kriegers Flak, will reach sizes of 400-600 MW. The future of wind energy Today the Danish wind industry, employing more than 28,000, holds a global market share of more than 20% of all newly installed capacity and a study by the Danish Energy Agency has concluded that onshore wind energy has become the cheapest energy source for new electricity generation in Denmark, undercutting coal and natural gas. However, the future calls for even more efficient turbines, overall cost reductions and a continued focus on the cooperation and strong partnerships between the industry, the private sector and the research institutions which has previously characterised the Danish wind energy story.
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Case: Østerild test centre ensures siemens wind power a competitive offshore advantage
Offering test facilities is a keystone in the Danish wind industry Test facilities are crucial for technological and system innovation in the Danish wind industry. In order to maintain Denmark’s leading role within wind energy, it is a prerequisite that the industry has easy access to test facilities for prototype testing close to their R&D departments. In Denmark you can test any part of a wind turbine. From materials to blades, welding, drivetrain and large components such as nacelles – and last but not least full scale turbines.
Siemens Wind Power is the world’s largest provider of offshore wind turbines. Siemens Wind Power has delivered turbines to the three largest offshore parks in the world: London Array, Greater Gabbard and Anholt Havmøllepark. Photo: Siemens Wind Power A/S
Case: Østerild test centre ensures siemens wind power a competitive offshore advantage
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ØSTERILD TEST CENTRE ENSURES SIEMENS WIND POWER A COMPETITIVE OFFSHORE ADVANTAGE Siemens Wind Power has just finished testing a 6 MW wind turbine at Østerild Test Centre, the world’s largest and most advanced centre for full scale turbine testing. The Danish test facility allows Siemens Wind Power to accelerate innovation to reduce energy production costs for offshore wind farms Michael Hannibal, CEO Offshore, Siemens Wind Power
In October 2012, Siemens Wind Power installed a 6 MW turbine at Østerild Test Centre in Northern Jutland, Denmark. The test centre, operated by the Technical University of Denmark (DTU), is of great importance to us. The test site allows us to test turbines on a full scale under changing climatic conditions, which is a strong driver for innovation and therefore a large component in reducing energy production for wind farms. The fast and comprehensive full scale testing possibility at Østerild means that the testing period has ended for SWP-6MW and it is already being used by the European offshore wind market. Innovation is our most important competitive advantage. Therefore, a public test facility, like Østerild, only reinforces the reason why we have decided to carry out our turbine tests in Denmark.
The importance of Østerild Østerild is currently the only place in the world where measurements on turbines up to 250 metres in height can be made. For this reason, the test centre is ideal for testing the offshore wind turbines of today and tomorrow. The technological improvements from the tests are already showing. Firstly, they ensure that our fleet of existing turbines continue to evolve and that small improvements can be made in order to increase output. Secondly, an entirely new and much larger wind turbine is underway: A 10 MW turbine. It is not just an evolution of the existing turbines, but a leap into something bigger. This is a turbine that I believe we will see on the market before 2020 thanks to the accelerated innovation that research and development testing allows for.
The Danish approach Denmark has pioneered the wind industry for the past four decades. Renewable energy is deeply integrated into the Danish conscience and Denmark is known worldwide for this. Denmark has high education and qualification levels within wind energy, which Siemens Wind Power takes advantage of in research and development. Denmark is also characterised by a political environment that has a positive attitude towards renewable energy. The public aspect of Østerild Test Centre is a good example of this. For all of these reasons, it is not a coincidence that Siemens has chosen to place and maintain its research and development departments in Denmark. In addition to the test facility of Østerild, we have established our own test centres in Denmark, investing over DKK 2 bn (EUR 268 m) in state-of-the-art research and development departments in the cities of Brande and Aalborg. Combined, these make up the largest test facilities for wind turbines and blades in the world. Altogether, these strategic reasons provide Siemens Wind Power with the best test opportunities in order for us to accelerate our wind turbine innovation.
Photo: Siemens Wind Power A/S
The first Siemens turbine at Østerild, the 6 MW, is being installed.
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Case: Advanced nacelle testing an integral part of vestas product development
Strong forces. Vestas’ own 20 MW test bench in Aarhus is ready to perform another test. Here, Vestas can simulate a complete life cycle for key components and systems in order to map potential reliability issues and possible improvements. This significantly reduces risks for customers and increases the speed of product development. Knowledge previously gathered after years in the field can now be collected over the course of months before a product is even installed for customers. Photo: Vestas Wind Systems A/S
Case: Advanced nacelle testing an integral part of vestas product development
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ADVANCED NACELLE TESTING AN INTEGRAL PART OF VESTAS PRODUCT DEVELOPMENT The world’s largest wind turbine manufacturer, Vestas Wind Systems, uses state-of-the-art test facilities to reach the ambitious targets for product development. The newest addition to the wind turbine test options in Denmark is the nacelle tester at LORC Anders Vedel, Executive Vice President & CTO, Vestas Wind Systems A/S
All around the year, Vestas is conducting tests on different components in different locations around the world. Most of these tests take place in Denmark, because advanced test facilities and relevant competencies are available here. The latest addition is Lindoe Offshore Renewables Center (LORC), where Vestas will perform full-scale testing of nacelles over the coming years. Comprehensive and advanced testing of components, systems and products is a key part of product development in Vestas, where the overall objective is to reduce the levelised cost of wind energy (by definition the production cost of each unit of electricity generated over the lifetime of a wind farm taking into account a wind farms development costs, capital investments, financial costs and lifetime running costs), shorten the time it takes to bring new products to market and to increase the business case certainty for the customers.
Shortening the time to market. LORC offers the world’s most realistic indoor full scale testing of 3-10MW nacelles. A unique design allows the hub to be included and the pitch system to remain active during testing of the nacelle’s functionalities and interaction with the grid. The full software and hardware is tested under extreme events with a test controller calculating the torque reference from simulated wind input.
The test process can roughly be divided into three steps with good facilities available in Denmark for every step. Step 1: Component and system integration testing Aarhus, the second-largest city in Denmark, provides the setting for Vestas’ powerful in-house test bench for wind turbines. Here, the full system, including main components such as gearbox and generator, is tested. The test bench can apply massive power and loads to the drivetrain similar to the conditions in the field, which allows us to simulate a complete life cycle over a short period of time. Step 2: Complete nacelle testing LORC adds another element to the tests, as the complete nacelle, including the hub, is tested on a 10 MW test bench. It enables Vestas to test other key components in the wind turbine and – not least – their
Photo: Vestas Wind Systems A/S
interaction during realistic conditions. For example, the full software and hardware is tested calculating the torque reference from simulated wind input. The test bench is close to unique when it comes to the ability to test the electrical components and their output to the grid. This is of course of great interest to Vestas – and in the end to our customers. Step 3: Field tests Finally, we test in the field to prove that we can deliver what we have promised our customers. A number of sites in Denmark are dedicated to test purposes, which enables us to quickly bring a prototype to field testing.
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Case: Making offshore wind attractive and accessible to investors
Beatrice is an offshore wind project located in Outer Moray Firth, Scotland, with a potential capacity of up to 664 MW. The project has been substantially developed by SSE and Repsol and is progressing towards Final Investment Decision in 2016. SSE manages the development of the project and will be the main operator. Beatrice is owned by SSE (50%), Repsol (25%), Copenhagen Infrastructure I (12.5%) and Copenhagen Infrastructure II (12.5%). All shareholders have seats on the board of the project.
Photo: Copenhagen Infrastructure Partners
Case: Making offshore wind attractive and accessible to investors
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MAKING OFFSHORE WIND ATTRACTIVE AND ACCESSIBLE TO INVESTORS
Offshore wind projects are politically and financially attractive investments
With interest rates at a historically low level, investing in infrastructure such as offshore wind is becoming increasingly attractive as new investment channels become available Christina Grumstrup Sørensen, Senior Partner, Copenhagen Infrastructure Partners Stephanie Bendorff Røpcke, Manager, Copenhagen Infrastructure Partners
For institutional investors, investment in offshore wind is attractive. With long time frames, stable returns over several years and a strong cash flow, offshore wind can serve as a substitute to certain bond types. Governments, seeking to achieve CO2 reductions, address future capacity needs and ensure regional security of supply, support offshore wind investments and the projects are becoming more bankable due to proven concept and technology. The world’s first offshore wind farm was Danish and built in 1991. Today, we have more than 5 GW offshore wind capacity installed in Europe and The European Wind Energy Association anticipates a level of around 23 GW by 2020. However, many institutional investors do not yet have the required resources and experience within energy infrastructure investments. This has led to the formation of specialised infrastructure funds, such as Copenhagen Infrastructure Partners (CIP), which was founded in 2012. To make offshore wind projects more attractive and
accessible for institutional investors, CIP applies an “industrial approach”. The five partners in CIP have extensive experience within development, construction and operations from numerous offshore wind projects and leverage their industrial background for access to proprietary deals. The recent CIP investment in the UK offshore wind project Beatrice is a good example of how and why the industrial approach works. CIP and the two shareholders of Beatrice, the UK energy company SSE and the global energy company Repsol, engaged in a dialogue in early 2014 about the possible acquisition of a shareholding in Beatrice. In November 2014, CIP acquired 25% of Beatrice from SSE. The acquisition was made on behalf of the two funds, Copenhagen Infrastructure I & II, which have commitments from eight of the largest institutional investors, primarily pension funds, in Denmark. SSE and Repsol had developed the project substantially since 2009 and CIP entered the project at the last stage of develop-
ment. This was late enough for the development risks to be significantly reduced: the Investment Contract was awarded and the grid connection, main consents and building permits were obtained. However, it was as well early enough to allow CIP to participate in the optimization of risk allocation (e.g. allocation of risks in the contracts with suppliers), concept (e.g. wind farm layout and technology choice) and bankability (e.g. participating in securing bankable Operations & Maintenance contracts and Power Purchase Agreements, designing and executing the project finance strategy). All areas in which the CIP partners have substantial experience. Unlike most infrastructure funds, CIP has a long investment horizon. This is attractive for industrial companies looking for long term partners with whom they can build and operate the projects and for institutional investors looking for strong cash flows and stable inflation-linked returns for many years.
Illustrative example: Revenue per MWh for a UK offshore wind project with an Investment Contract Nominal GBP received per MWh produced Investment Contract strike price
Year 1
2
3
4
5
6
Estimated market price – Illustrative average level
7
8
Estimated market price – Illustrative high and low level
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Beatrice is one of five offshore wind projects in the UK awarded an Investment Contract by the UK government. The Investment Contract secures the generator a fixed CPI indexed price per MWh for a 15-year period (green area). After this period, the generator receives the market price (blue area) which is expected to be lower and exhibit fluctuations due to seasonal effects and changes in economic activity. The investment contract thus reduces the power price risk significantly and produces bond-like cash flows. The graph is only an illustrative example of the revenue profile for a project similar to Beatrice.
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Case: Sustainable wind export business
Export of the Danish energy model The Danish political parties have approved an initiative to promote export of Danish energy solutions in the period from 2014 to 2015. The countries of focus for the export initiative are UK, Germany and China. The aim is to facilitate increased collaboration between Danish and foreign authorities to pave the way for business cooperation, export opportunities and foreign investments in Denmark.
Photo: Keenpress/Wind Power Works
A green transition. China stands as an example of countries wishing to transform its energy sector into a greener one. The country’s extensive need for energy has seen a large fraction of renewable energy projects being built in recent years. Denmark’s extensive knowledge within renewable energy technologies, in particular within wind, creates great knowledge-sharing opportunities between the two countries.
Case: Sustainable wind export business
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SUSTAINABLE WIND EXPORT BUSINESS
Industry hand in hand with intergovernmental cooperation on the green agenda Wind energy covered more than 39% of the Danish electricity consumption in 2014. This makes Denmark a world champion in wind generated electricity and a market leader in the green energy transition. Denmark has recently created a new initiative to extend our successful government to government cooperation in this field Morten Bæk, Director General, Danish Energy Agency
Green energy technologies are in high demand and Denmark is a living example that economic growth and CO2 reductions can be achieved simultaneously. Denmark has already established bilateral cooperation with a number of countries, including China, Mexico, South Africa and Vietnam to catalyse the energy transition in these countries. The focus is on energy policy and regulatory issues - such as cost effective framework conditions for wind power expansions. China has entered the energy transition fast track with a clear focus on e.g. wind performance and quality, aiming to learn from Denmark’s technology development practice and regulatory experience. The cooperation makes for real cuts in global CO2 emissions and paves the way for increased bilateral trading in the energy area. Danish export statistics show that green energy technology equals good business. Energy technology exports have long accounted for a large share of Denmark’s export of goods compared to other EU countries. In 2014, the export of energy technologies amounted to 12% of exported goods total. Of this, green technologies accounted for more than half. Wind export China exemplifies countries that wish to green their energy production. With an extensive thirst for more energy, renewables are making up a large fraction of newly built energy projects in China. Based on a decade of mutually beneficial cooperation Denmark has recently initiated a pilot project to support China’s energy transition. Out of the total export of goods to China in 2014, export of energy technologies
amounted to 12.2% with a green energy technology proportion of 29.5%. Of this, the majority was wind. Government to Government cooperation In the implementation of the current bilateral project, the Danish Energy Agency has joined forces with the Trade Council at the Royal Danish Embassy in Beijing and Danish suppliers to the wind industry in China. The project idea is based on an integrated approach, where deep regulatory cooperation makes for sustained business opportunities. The Chinese authorities have welcomed this approach, appreciating the Danish experience in crafting legislation, regulation and modelling for greening the energy sector. Changing the focus China has invested in onshore wind energy amounting to approx. 100 GW. Some farms
2005
2014
Danmark
EXPORT SHARE
8.4
12.0
Finland
6.6
9.1
Italien
7.8
9.1
Tyskland
7.5
8.7
Østrig
7.4
8.3
Sverige
6.6
7.9
EU15
5.8
6.6
Frankrig
6.1
6.2
Storbritannien
5.2
5.7
Spanien
4.3
5.4
Portugal
4.5
5.4
Luxembourg
4.9
4.9
Grækenland
5.2
3.4
Belgien
3.3
3.2
Holland
3.0
3.2
Irland
2.0
1.8
in this vast portfolio are not performing up to standards and the Chinese government is dedicated to make the most of its investment. In the pilot project, Denmark will share its knowledge on how Chinese wind farms can increase performance using Danish standards and technology. The approach is a focus on Levelized Cost of Energy (LCOE). LCOE is the production cost of each unit of electricity generated over the life time of a wind farm taking into account a wind farm’s development cost, capital investment, financial costs, and lifetime running costs. The way we think of wind is changing from a focus on investment costs only to a broader focus that includes operation and maintenance costs, too. China has historically approached wind projects with a relatively short-term investment perspective. Through the Danish LCOE approach, Chinese wind farms can achieve a more robust business case and greater return on investments.
Energy technologies’ share of the export of goods among the EU15 countries In comparison to other EU countries, export of energy technologies has long accounted for a large share of goods exported from Denmark.
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Case: Selected examples of danish footprints in offshore wind
SELECTED EXAMPLES OF DANISH FOOTPRINTS IN OFFSHORE WIND
London Array 630 MW United Kingdom 2013 Danish deliveries: Developer and operator Wind turbines Wind turbine installation Substructure installation Substructure main constructor Substructure design Design of substation foundation Monopiles and transition piece Grouting Logistics Monitoring of wind, waves and currents Project finance
Horns Rev 2 209 MW Denmark 2009 Danish deliveries: Developer Accommodation platform Wind turbines Wind turbine installation Foundations Foundation installation Foundation design Operator Substation Substation installation Project finance
Middelgrunden 40MW Denmark 2001 Danish deliveries: Developer and operator Wind turbines Wind turbine installation Substructure design Design of substation foundation Substructure main constructor Substructure installation Foundations and transition pieces Logistics Project finance
Kentish Flats 90 MW United Kingdom 2005 Danish deliveries: Developer Wind turbines Wind turbine installation Substructure design Substructure main constructor J-tube installation Grouting Logistics
Case: Denmark - The supplier hub
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DENMARK - THE SUPPLIER HUB
The Danish supply chain and production capabilities form a unique wind energy supplier hub. Strong and extensive collaboration, commitment to innovation and years of experience form the basis of a strong and progressive hub that is able to compete internationally For nearly 40 years, companies in the Danish wind industry have developed and built wind turbines, installed them and integrated wind into the energy system. Today, Denmark is home to some of the world’s leading companies, and more than 500 companies, working in all areas of the wind industry, are located in Denmark. Every link in the supply chain is represented in Denmark. Hundreds of companies are involved in wind turbine production, substructures, logistics, investment, development, installation and service. They form a close-knit network with unique competences. A strong supplier hub – now and in the future Competitive parameters and supplier requirements have developed by leaps and bounds in the last decade. While focus remains on the innovative capabilities of the suppliers, there has also been increasing focus on other aspects, such as quality management, time to market and servicing. The Danish supply chain has adapted to the changing landscape and has remained competitive in the global marketplace. When it comes to lowering the cost of wind energy, Danish suppliers have a strong hand. Anholt 400 MW Denmark 2013 Danish deliveries: Developer and operator Wind turbines Wind turbine installation Substation installation Substation design Substation manufacturer Export cables Export cable installation Substructure main constructor Substructure design Monopiles and transition piece Monopiles and transition piece installation Export cable manufacturing Export cable installation Grouting Logistics Geophysical investigations Environmental Impact Assessment Project finance
The current evolution of the supply chain structure is evidence of maturity of the Danish supplier hub. Drawing inspiration from both the automotive and aerospace industry, industrialization of the wind industry is moving forward, and it is becoming evident that the Danish supply chain can set the standards for structural changes and new business models, such as system solutions.
Forging alliances Danish style Wind turbine manufactures today require systems and solutions from the supply chain more than individual components from a range of companies. For the big wind turbine producers, contracting a series of expert companies individually to each provide one part of a total system is time consuming and costly to manage compared with managing a single interface with an allied group. Denmark, with its myriad of small companies with specialist wind industry knowledge, often run by people with years of shared industry experience, is ideally positioned to respond to the new trend. Danish suppliers have been good at organising themselves in groups and co-operative constellations to supply a complete solution. Suppliers who before delivered directly to the big producers now deliver to other sub-suppliers who take care of the direct relation with the wind turbine producer. Moving towards more integrated system solutions reinforces the need for the wind industry to consolidate and cooperate. Strong ties between the wind turbine manufacturers and the so-called “system suppliers” are in the best interest of all parties. These suppliers achieve the status of development partners for the next generation wind turbines – another advancement which serves to underline the strength of the Danish supplier hub.
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