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  • 20 03 2015 | EWEA OFFSHORE 2015 draws over 8000 delegates from around the world

    Over 8000 delegates from 54 countries descended on Copenhagen this year to attend the EWEA OFFSHORE 2015 event at the Bella Center - the world’s largest offshore...

    20 03 2015 EWEA OFFSHORE 2015 draws over 8000 delegates from around the world

    Over 8000 delegates from 54 countries descended on Copenhagen this year to attend the EWEA OFFSHORE 2015 event at the Bella Center - the world’s largest offshore wind energy conference and exhibition.

    In addition to 430+ exhibitors, the event saw keynote speeches from high-level political and industry players on the state of Europe’s offshore wind industry and the continent’s energy mix at large.

    EWEA OFFSHORE 2015 played host to the Crown Prince Frederik of Denmark and six ministers from four different Member States including the Deputy Prime Minister of Denmark Morten Ostergaard; Denmark’s Foreign Minister Martin Lidegaard; Denmark’s Minister for Climate, Energy and Building Rasmus Helveg Petersen; Sweden’s Energy Minister Ibrahim Baylan; Ireland’s Research and Innovation Minister Damien English; and the Latvian Economy Minister Dana Reizniece-Ozola, whose country also holds the EU Council Presidency.
     
    The central theme of the event tackled one of the most pressing issues for the offshore wind business today – cost reduction. Three of the biggest players on the European offshore wind stage – DONG Energy, MHI Vestas Offshore Wind and Siemens Wind Power – launched an initiative at the event called United Industry. The declaration aims to spark joint and collective actions across the whole of the value chain to deliver long-term reductions in the cost of offshore wind.

    EWEA OFFSHORE 2015 also had a heavy press presence with over 100 journalists from the mainstream, trade and B2B media attending to speak with delegates and experts on a variety of different topics. Journalists were invited to a number of press conferences held by EWEA members as well as short boat trip to view the Middelgrunden offshore wind farm in Copenhagen – once the world’s largest offshore park.

    The three-day event provided an excellent showcase and networking opportunity for EWEA’s members to speak with policymakers, media and industry partners alike while also enjoying a wide range of plenary sessions and workshops.

    EWEA would like to thank everyone who contributed to making EWEA OFFSHORE 2015 a resounding success and looks forward to welcoming the wind industry supply chain at the EWEA 2015 Annual Event in Paris in November.

    Published by EWEA, March 17 2015
  • 16 03 2015 | White Paper on wind power kick-starts EWEA OFFSHORE 2015

    Today, State of Green launches the White Paper on wind in collaboration with the Danish Wind Industry Association and leading Danish actors across the wind power value...

    16 03 2015 White Paper on wind power kick-starts EWEA OFFSHORE 2015

    Today, State of Green launches the White Paper on wind in collaboration with the Danish Wind Industry Association and leading Danish actors across the wind power value chain.

    By Dan Howis Lauritsen, State of Green, March 9 2015
     
    Integrating 10, 20, 30, 40 or 50% wind energy in the electricity system, agreeing on the political framework for large investments and getting the citizens on board for new projects is no easy task. Yet it is possible, and Danish developments in wind power stand testament to this.
     
    Since the end of the 1970s, Denmark has been building a high-tech wind energy industry and has developed into a global hub for wind spanning the entire value chain. In 2004, wind turbines provided 18.8% of Denmark’s electricity consumption. 10 years later the figure had increased to 39.1%, which is a world record. In January 2014 alone, Denmark’s wind turbines reached 61.7%. This is according to figures from Energinet.dk, the Danish transmission system operator responsible for the security of supply of electricity and gas:
     
    “It can’t be done. It’s not possible to integrate more than a few percent wind energy in the electricity system. These are the 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 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,” said Peder Østermark Andreasen, CEO, Energinet.dk.

     The 13 offshore wind farms in Denmark are crucial to reach the Danish goal of a fossil-free future by 2050. Today, onshore wind power has become the cheapest energy source for new electricity generation in Denmark, undercutting coal and natural gas, according to a cost analysis performed by the Danish Energy Agency. In terms of offshore, with a price of 10.31 Eurocent per. kWh., the new offshore wind farm, Horns Rev 3, will provide power much cheaper than other recently established offshore wind farms in Denmark and abroad.
     
    “Denmark is in the middle of a green transition and wind energy plays a big part in creating an energy system based on renewable energy sources. (…) It was the question of energy security that sparked the Danish transition. The recent development in our part of the world shows that the question of energy security of supply is more relevant than ever. Wind energy is a great way to meet this challenge,” said Danish Minister for Climate, Energy and Building Rasmus Helveg Petersen in the foreword of the white paper.
     
    White Paper: Wind Energy Moving Ahead
    This white paper on wind: “Wind Energy Moving Ahead – How Denmark utilises wind in the energy sector” gathers lessons learned from different Danish players and legislators within the wind energy sector, supported by state-of-the-art case examples showing, for instance, how integrating wind, investing in wind and optimising products to make more wind for less money is being done every day. 
     
    The content is meant to serve has a helpful tool for international stakeholders who wish to gain an overview of the Danish approach to utilise wind, who want to spot the potentials of wind power, or are looking for Danish business partners. The white paper has been developed by State of Green and the Danish Wind Industry Association.
     
    The white paper includes:
     
    - Wind is a major part of the solution
      Foreword by Rasmus Helveg Petersen, Danish Minister of Climate, Energy and
      Building
    - There is no status quo in the wind industry: Cost reductions and alliances
      are keywords in the Danish wind industry 
      By Jan Hylleberg, CEO, Danish Wind Industry Association
    - Acting the way the industry needs: When dialogue, transparency and
      flexibility become more than just words
      By Peter Sehestedt, Special Advisor, Danish Energy Agency
    - Denmark to meet 50% wind energy target in 2020: A cross-border
      electricity market and good connections to neighbouring markets ensure
      first-class security of supply 
      By Peder Østermark Andreasen, CEO, Energinet.dk
    - Electrification equals value from wind energy: Why electrification is
      necessary for the Danish energy system
      By Lars Aagaard, CEO, Danish Energy Association
    - Bringing the neighbours on board: A specialised wind turbine task force is
      assisting the planning process of onshore wind projects 
      By Niels Bjørkbom, Head of the Wind Turbine Task Force, Danish Ministry of
      the Environment
    - The world’s most depicted offshore windfarm is 50% locally owned 
      By Erik Christiansen, Chairman of Middelgrunden Wind Turbine Cooperative
    - Østerild test centre ensures Siemens Wind Power a competitive offshore
      advantage 
      By Michael Hannibal, CEO Offshore, Siemens Wind Power
    - Advanced nacelle testing an integral part of Vestas product development 
      By Anders Vedel, Executive Vice President & CTO, Vestas Wind Systems
    - Making offshore wind more attractive and accessible to investors 
      By Christina Grumstrup Sørensen, Senior Partner, Copenhagen Infrastructure
      Partners / Stephanie Bendorff Røpcke, Manager, Copenhagen Infrastructure
      Partners
    - Sustainable wind export business 
      By, Morten Bæk, Director General, Danish Energy Agency
    - Case: A powerplant at sea 
    - Case: Repowering for a windy future
     

    Learn more 
    Download the White Paper
    Watch Offshore Wind Denmark's video "Denmark - offshore wind power hub"
  • 16 03 2015 | Denmark gets cheaper power from offshore wind turbines

    With a price of 10.31 Eurocent per. kWh., the new offshore wind farm, Horns Rev 3, will provide power much cheaper than other recently established offshore wind farms in...

    16 03 2015 Denmark gets cheaper power from offshore wind turbines

    With a price of 10.31 Eurocent per. kWh., the new offshore wind farm, Horns Rev 3, will provide power much cheaper than other recently established offshore wind farms in Denmark and abroad.
     
    By Jesper Caruso, Ministry of Climate, Energy and Building. Published by State of Green, february 27 2015.

    The winning tender for the wind farm Horns Rev 3 came from Vattenfall Vindkraft A/S who have agreed a price of 10.31 Eurocent per. kWh. In comparison with previous price assumptions, this means that Danish consumers will experience a saving of approximately 295 million Euros. over the next 11-12 years, which is the period during which the offshore wind farm will be in receipt of subsidies. Thereafter, the Horns Rev 3 facility will produce electricity at the market price and will no longer receive any form of subsidy.
     
    The winning bid is well below the 14.07 Eurocent (15.15 Eurocent in fixed 2015-prices) which is the price being charged by Anholt Offshore Wind Farm. Horns Rev 3 is thus 32 percent cheaper than the last time Denmark built an offshore wind farm. This makes it the cheapest offshore wind park in Europe at the moment.
     
    Compared to other wind farms abroad, this represents a very low price. Though a direct comparison is not possible, in the UK - the largest market for wind turbines - the cheapest parks currently being built cost 15.33 Eurocent / kWh in 2015. In addition to this the subsidies are adjusted for inflation and, in contrast to Denmark, the subsidy period is 15 years instead if the 11-12 years afforded in Denmark.
     
    ”With Horns Rev 3 Denmark is making windmill history through realising a significant reduction in the cost of establishing offshore wind farms. There is no doubt that the power from offshore wind turbines will continue to be an essential part of the green transition and contribute effectively to reducing CO2 in the atmosphere," says Minister for Climate, Energy and Building Rasmus Helveg Petersen.
     
    The low price is due in large part to technological developments throughout the wind turbine industry combined with a very successful tendering process. Through extensive dialogue and subsequent negotiations with the bidders, the DEA have managed to lower the price considerably. At the same time, a good, competitive environment was fostered around the windmill tendering process in which four companies were pre-qualified to participate.
     
    "The low price is not just good for Denmark, but also for the international green transition. The general decline in prices in the market for wind power means that offshore wind power is now well on its way to becoming a viable competitive alternative to traditional fossil fuels. At the same time, we have developed an efficient procurement model which the whole of Europe can take inspiration from," says Rasmus Helveg Petersen.
     
    The successful bid has already been approved by the signatories of the Energy Agreement 2012 and must now be adopted by parliament and signed into law. The government will present the bill on March 18 and the proposal is expected to be adopted during April with the backing of a large political majority in parliament. 


    Facts about Horns Rev 3
    - The winner of the tendering process is Vattenfall Vindkraft A/S.
    - The agreed price is 10.31 Eurocent per. kWh.
    - The construction of Horns Rev 3 is to commence as soon as possible and the
      park is to be completed by 1 January 2020.
    - The first turbines will be able to be connected to the grid from January 1 2017
      when they will be functional and ready to supply power to the grid.
    - There were four companies pre-qualified to participate in the tender.
    - Horns Rev 3 will result in the creation of up to 7,000 jobs over a three year
      period starting in 2016.
    - Electricity production from the park will be enough to supply the needs of
      450,000 households.
    - Establishing this facility will increase the wind-sector’s share of electricity
      consumption in 2020 by 4.8% points from 46.2% to 51.0%.
    - CO2 emissions will be reduced by 1.16 million tons.

    Source: Danish Ministry of Climate, Energy and Building
  • 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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