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  • 12 01 2015 | Denmark sets world record in wind – again

    2014 saw once again a world record for the Danish energy sector, as wind provided 39.1% of the Danish electricity. This was reported by the Danish transmission regulator...

    12 01 2015 Denmark sets world record in wind – again

    2014 saw once again a world record for the Danish energy sector, as wind provided 39.1% of the Danish electricity. This was reported by the Danish transmission regulator Energinet.dk.
     
    We have only just left 2014, yet it is already clear that 2014 was an extremely good year in terms of electricity production from the Danish wind turbines. In total, 39.1 % of Danish electricity came from wind energy. In comparison, this figure was 33.2 % in 2013.
     
    "We have seen a good increase from 2013 to 2014. I am particularly pleased that the energy industry has once again proven that wind turbines have a central role in a modern energy system. With this, Denmark proves that it is possible to handle large amounts of wind energy without a problem," Jan Hylleberg says, CEO for the Danish Wind Industry Association.
     
    In 2013, a large expansion of new wind energy capacity took place in Denmark with the grid connection of the 400 MW Anholt Offshore Wind farm as well as a record high number of onshore wind turbines. The fruits of this became evident in 2014. According to Energinet.dk, 2014 was just an ordinary 'wind-year' with an average amount of wind. January 2014, however, saw periods with lots of wind and on average 61.7% of electricity consumption this month came from wind turbines.
     
    "Every year, we prove that we can integrate more electricity from wind turbines into the energy system. The major task is now to ensure that we use this electricity in the transport and heating sector. Together with politicians, we must urgently ensure more large heat pumps in the direct heating network, as a huge potential lies here," Jan Hylleberg concludes. 
  • 17 11 2014 | Apples and oranges in new study on property values

    A theoretical analysis from researchers at the University of Copenhagen finds that houses neighboring wind turbines to a varying degree will depreciate in value due to...

    17 11 2014 Apples and oranges in new study on property values

    A theoretical analysis from researchers at the University of Copenhagen finds that houses neighboring wind turbines to a varying degree will depreciate in value due to noise and visual impact. It is a substantial analysis, however it leaves little to say on the current situation with onshore wind energy development in Denmark, says Danish Wind Industry Association and Danish Wind Turbine Owners' Association in a joint message.

    Based on a number of theoretical models and assumptions as well as more than 10.000 house sales from 2000-2011, the analysis shows that loss of property value occurs to a varying degree  depending on whether a wind turbine is visible or audible from the analyzed house. For example, the researchers found that a house located 800 meters from the nearest wind turbine will depreciate 7-14% in value. However, the type of wind turbines installed in Denmark today (125 meters+ in height) make out less than 5% of the data in the analysis.

    “It’s a very complicated and highly theoretical analysis which builds on a number of assumptions. The result is a thorough analysis, from which it is very hard to draw any conclusions that that are applicable to the installation and planning of large modern turbines in Denmark today,” says Asbjørn Bjerre, CEO, Danish Wind Turbine Owners' Association. He is followed by Jan Hylleberg, CEO, Danish Wind Industry Association:

    “Like most other real estate markets, the Danish market is based on peoples’ willingness to pay extra for a certain house and location. Thus, some people choose not to live close to highways, cellphone towers or wind turbines and the analysis simply finds that certain house prices are affected if a turbine is visible or audible. The same mechanism will apply to a house next to a busy road. However, the findings are based on both new and old turbines which makes it hard to apply the findings”

    The analysis is based on distance, noise and visual data from the 24 residential areas in Denmark with most household transactions within 600 meters of wind turbines, regardless of size and age of the wind turbines.

    “The regulations on noise and distance have changed a lot over the years and today, there are typically no houses located within 600 meters of a new wind turbine,” says Asbjørn Bjerre.

    Assessing loss of value today
    As the only country in world, Denmark is already operating with a specific legal provision in the renewables legislation act, which allows neighbors to new wind turbines to seek compensation if a property loses value. The Danish Valuation Authority (Taksationsmyndigheden) assesses loss of value based on personal onsite inspections by a lawyer and a real estate agent and has been in place since 2009. The assessment applies to all neighbors who will potentially be affected by the installation of a new wind turbine. This means that neighbors to a wind turbine have a higher degree of economic protection than neighbors to other types of infrastructure.

    “It is important to distinguish between the theoretical and the real-life way of assessing the value of a house and subsequently the potential depreciation of that value,“ says Jan Hylleberg.

    The study can be found here (pay-wall)

  • 24 09 2014 | Denmark – Wind Energy Hub

    Denmark is home to some of the world’s largest and most innovative wind companies, and the Danish skills within wind energy have created a competitive, globally...

    24 09 2014 Denmark – Wind Energy Hub

    Denmark is home to some of the world’s largest and most innovative wind companies, and the Danish skills within wind energy have created a competitive, globally leading wind industry.
     
    A new brochure from the Danish Wind Industry Association, focusing on all levels of the value chain, highlights the solutions and possibilities present in the Danish wind industry. Denmark is the first country to actively pursue an energy system independent of fossil fuels.   In the realization of a sustainable and cost efficient energy supply in Denmark, the Danish skills within wind energy play a central role. 
     
    The brochure – “Denmark – Wind Energy Hub” – is published in cooperation with Invest in Denmark and State of Green.  It is targeted at international companies and decision makers wanting an overview and an introduction to the composition and potential of the Danish wind industry as well as how wind energy can be implemented as an essential part of a county’s energy system.
     
    Furthermore, the brochure highlights a number of current issues including the importance of political commitment and stability; Denmark as the offshore first-mover; cost reduction; the global overflow of Danish offshore DNA; pioneering Danish research; the importance of qualified human resources and much more.

    Get the brochure here
    - Enjoy!
  • 08 09 2014 | Interview: The Power of Wind

    Denmark is Harvesting Wind Power and Strengthening the European Grid Denmark has been the first country to fully embrace wind energy. Its wind revolution began in the...

    08 09 2014 Interview: The Power of Wind

    Denmark is Harvesting Wind Power and Strengthening the European Grid

    Denmark has been the first country to fully embrace wind energy. Its wind revolution began in the 1970s. "Today, Denmark is still home to some of the most prominent players in the various disciplines, such as production of turbines, finance, installation, and project development," says Jan Hylleberg, CEO of the Danish Wind Industry Association. Denmark's leading position in the industry is also due to the fact that they've had large amounts of wind energy feeding their electricity grid. According to Hylleberg, last year more than 33% of the electricity came from wind energy This number is expected to increase to 50% in 2020.
     
    Denmark has also been the first country to use wind turbines offshore. The first offshore turbines were deployed in 1991 and are still running. Hylleberg explains, "Today, it is a totally different ball game. - industrialization and professionalism have increased a lot. In Denmark, we hold second place for installed wind energy capacity offshore and we are currently planning for 1400 MW offshore to be installed by 2020. The largest current projects are the two offshore parks Kriegers Flak in the Baltic Sea (600 MW) and Horns Rev 3 in the North Sea (400 MW)." Offshore wind has large potential and Europe's capacity to generate it will increase 7-8 times before 2025. Leading companies based in Denmark such as Siemens Wind Power, MHIVestas Offshore Wind and DONG Energy hold a prime position in the growing market. Today, approximately 9 out of 10 offshore turbines are made by Danes.
     
    For other countries, Denmark presents a real-world example of how wind energy can be used in large scale and across borders. "Some days, wind turbines produce what corresponds to more than l 00% of the electricity consumption. Danish energy companies and the TS01 are controlling the production and export of wind. This is quite unique and an example of how a region such as Europe can function in the future," says Hylleberg. Many companies in Denmark are already international players, carrying Danish knowledge beyond borders. Also, foreign companies are settling in Denmark to open R&D and production facilities, as the quality of wind research and innovation in Denmark is high and the country is well-positioned strategically in the wind energy market.
     
    When it comes to exporting their energy; Denmark is part of the Nord Pool Spot electricity market. By letting the markets regulate the demand, it becomes possible to adjust the use of fossil energy as the use of coal and gas can be kept to a minimum on windy days and turned up on windless days.
     
    Key challenges
    Although the wind industry is developing rapidly, only onshore wind is cheaper than gas and other energy sources. Today offshore wind remains more expensive. The industry aims at lowering these prices. "Among other things, this means that the energy playing field must be leveled. By this, I mean to remove subsidies for all energy technologies including wind energy," states Mr. Hylleberg. Renewable energy currently receives significantly fewer subsidies than fossil fuels and nuclear energy in the EU. "By removing this barrier and strengthening the grid across Europe, we can overcome some of the barriers that arise when the turbines in one region are producing a lot or a power plant shuts down unintentionally. In Denmark, we have developed an effective grid and regional market, but this needs to be broadened to the rest of EU," concludes Hylleberg. 
     

    _________________________________________________________________

     
    The interview has been published in NRG Magazine, edition 15 (page 36). Read the magazine online here where you can also read more about the upcomming IGRC 2014 (International Gas Union Research Conference 2014) September 17-19 in Copenhagen, Denmark.
  • 16 04 2014 | Global decline had little effect in Denmark

    In 2013, Danish wind companies experienced a slight overall decline in turnover and exports. Despite this, the Danish wind industry still performed better than the highly...

    16 04 2014 Global decline had little effect in Denmark

    In 2013, Danish wind companies experienced a slight overall decline in turnover and exports. Despite this, the Danish wind industry still performed better than the highly challenged global wind market. The Danish Wind Industry Association’s recently published industry statistics show a decline in 2013, but 2014 will bring back industry growth, says the Association.

    The recently published report outlines the performance of the large group of companies in the Danish wind industry in 2013, where the global market for new wind energy installations dropped 26 pct. compared to the year before. In the report, the Danish Wind Industry Association presents a decline in Danish exports by 6.9 pct. in 2013. In the same year, the report also shows a fall in the revenue of 1.6 pct., which ended on level with previous years at approx. 80 billion DKK.

    "In a global perspective, companies in the Danish wind industry got well through 2013. When looking at the general market decline, Danish wind companies actually outperformed several other competitors, and it is noteworthy that the Danish industry almost managed to maintain its revenues, "says Jan Hylleberg, CEO, Danish Wind Industry Association.

    Exports saw a greater decline than revenue with a 7 pct. decrease from 52.3 billion DKK in 2012 to 48.7 billion DKK in 2013. In the Danish wind industry, 61 pct. of the turnover was exported against 64 pct. in the year before.

    "In addition to the large drop in the international market, the fall in exports of almost 7 pct. happened due to the extraordinary large number of activities in Denmark last year. In 2013, Danish manufacturers and companies had a larger than normal domestic focus with the commissioning of the Anholt wind farm, which meant that fewer items were exported. Therefore, the decrease is quite understandable," says Jan Hylleberg.

    Political uncertainty harms
    2013 was the first year since the 1980s that the global wind market dropped. This drop in installed capacity can in particular be attributed to declines in markets like the United States and Spain, where national political support for renewable energy almost disappeared.

    "There is no doubt that the political uncertainty we saw in several markets in 2013 has contributed greatly to the decline we experienced in Denmark. Once again, this underlines the need for long-term planning and political clarity in all markets, so that the industry can make long-term and appropriate investments," explains Jan Hylleberg.

    Market uplift in 2014
    The Danish wind industry can look forward to more work in 2014, where the global market according to the consulting company MAKE is expected to grow by approx. 40 pct. to 48,300 MW. Jan Hylleberg assesses that Danish companies have a good basis for taking part in the market growth. 

    "Towards the end of 2013, we saw a large number of companies gearing up to match the increased activity in 2014. Therefore, it is also our expectation that we in 2014 will increase our market share and increase exports and revenues in the industry, " says Jan Hylleberg and concludes:

    "2013 was not a good year for the global wind industry, but from a Danish perspective we performed satisfactorily and managed better than average. Therefore, the Danish industry is also well prepared for 2014, which we expect to be levelled with the record year of 2012."

    Read the Danish Wind Industry Annual Statistics 2014 (full report - in Danish only)

  • 05 03 2014 | Wind makes up less than 5 % of Danes’ electricity bill

    In 2013, tariffs supporting wind energy made up 4.6 pct. of Danish utility bills – a slight increase from 2 pct. in 2012. Calculations by the Danish Wind Industry...

    05 03 2014 Wind makes up less than 5 % of Danes’ electricity bill

    In 2013, tariffs supporting wind energy made up 4.6 pct. of Danish utility bills – a slight increase from 2 pct. in 2012. Calculations by the Danish Wind Industry Association show that the increase can be attributed to Denmark's largest offshore wind farm, which was completed in 2013. 

    In March 2012, the National Energy Agreement was approved with broad political support for an ambitious green restructuring of the Danish energy system toward 2020. The agreement defines the framework and targets for future Danish renewable energy expansions. With the agreement, the financial support for renewable energy continues to be paid over the Danish electricity bills through the Public Service Obligation tariff (PSO).   

    The collective PSO tariffs amounted to 5.3 billion DKK in 2013, which corresponds to 7.9 pct. of the total electricity bill for an average Danish household. 3.1 billion DKK of the PSO tariff went to wind energy, which forms the backbone of the Danish government’s green energy plan, where wind is to deliver 50 pct. of Danes’ electricity in 2020. 

    "Looking at the PSO figures from 2013, we see that average Danish households paid almost 8 pct. of their electricity bills to the transformation of the Danish energy system. Just over half of that, 4.6 pct., went to support wind energy. 4.6 pct. is a small part of the total electricity bill, however a very important part, as it contributes to the reformation and development of Denmark's energy supply," says Jan Hylleberg, CEO of the Danish Wind Industry Association.

    Support for wind increases 
    In 2012, the fraction of the PSO tariff going to wind was 44 pct. and amounted to approx. 2 billion DKK. The share paid to wind energy was 4 pct. of the electricity bill for an average Danish household in 2012. Comparing the figures from 2013 with 2012, both the total tariff costs and the wind share increased. This increase happened for a good reason and on the basis of political decisions, states Jan Hylleberg:

    "Wind is the cheapest form of renewable energy in Denmark, which is why this energy source naturally attracts more investments. Wind energy is also the cheapest way in which the goals for Denmark’s green transition are best achieved. In 2013, Danish households are to a larger extent than in 2012 contributing to the transformation of the Danish energy system through their electric bills, because we are now sourcing even more energy from wind."

    With the approval of the National Energy Agreement this trend is predicted to continue in 2014 as the expected expansion of the Danish wind capacity takes place. 

    "It was expected, that we would see an increase from 2012 to 2013 due to the commissioning of the Anholt offshore wind farm (400 MW), which was planned prior to the 2012 energy agreement entered into force. This is what we see reflected in the PSO increase between the two years," says Jan Hylleberg.

    Offshore wind turbines receive support in an average of 12-13 years, while onshore turbines are supported for an average of seven years. When the support scheme expires, turbines only receive the price rates determined by the electricity market.

    Support for other energy sources
    In addition to wind energy, other energy technologies receive support through the PSO tariff. 22.3 pct. of the PSO went to decentralized fossil power plants, while 7.7 pct. went to biogas and 8.6 pct. to biomass.

    In addition, solar and wave energy are also included in the PSO tariffs. As the support for solar energy is changing, it is expected that the support for solar power will account for an increasing proportion of future PSO payments.



    Electricity bill composition 2013

    (DKK øre/kWh)

    Electricity price: 37.51
    Grid- and system tariff: 40.18
    PSO: 17.38
    Taxes and VAT: 126.27
    Total electricity price incl. VAT: 221.34

    PSO distribution 
    PSO - wind: 10.08
    PSO - other: 7.30

    Source: Danish Wind Industry Association, Danish Energy Association and Energinet.dk



    An average Danish household
    The composition of the electricity bill means that an average Danish household with an annual consumption of 4,000 kWh paid 695 DKK through the PSO in 2013 – out of which support to wind energy accounted for 403 DKK. 


    About the PSO tariff
    PSO stands for "Public Service Obligation", and is a tariff that individual consumers and businesses pay through their electricity bills. It is through the PSO tariff that the production of renewable energy, operation of decentralized power plants and research in clean energy technologies are supported.

    Energinet.dk sets the PSO tariff each quarter. The PSO tariff builds on the principles that when the price of electricity is high, renewable energy requires a smaller PSO contribution to be competitive. A higher PSO tariff is temporarily needed when electricity prices fall in order for green energy to remain profitable.



Danish Wind Industry Association

Rosenørns Allé 9, 5. sal
DK-1970 Frederiksberg C

Tel: +45 3373 0330
E-mail:

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