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Market and Prices
The prices at the European power exchanges reflect the current overcapacity and that the majority of the production facilities are already depreciated and paid by the consumers. Hence, neither wind power nor any other new capacity can penetrate the market without political backing. In addition, health and environmental costs are not calculated into the kWh-price for the individual energy technologies. Wind power would be fully competitive today, if they were.
Many countries have a payment system, which ensures an environmental bonus in addition to the market price in order to promote the installation of wind power. Previously Denmark had a fixed feed-in tariff for wind power, but today all power is sold on the liberalised electricity market. In addition to the market price, which is set by the Nordic power exchange, Nord Pool, wind power investors get an environmental premium of 0.10 DDK/kWh (approx. 0.013 EUR/kWh). This development from fixed to market based prices is natural in a liberalised market system. But the Danish Wind Industry Association deems the current premium too low – considering the environmental benefits and the necessary rate of return for the investors in wind power.
- 08-09-2014 Interview: The Power of Wind
- 16-04-2014 Global decline had little effect in Denmark
- 05-03-2014 Wind makes up less than 5 % of Danes’ electricity bill
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