Denmark

Denmark

Denmark agrees "ambitious" energy deal

DENMARK: Three new offshore wind projects, totalling 2.4GW, and a share of DKK 4.2 billion (€564 million) to support onshore wind form part of a new energy agreement supported by all of Denmark's major parties.

Three new offshore wind projects will be tendered as part of Denmark's new energy agreement (pic: Sund and Baelt)
Three new offshore wind projects will be tendered as part of Denmark's new energy agreement (pic: Sund and Baelt)

Despite the new financial support, the government is targeting a reduction in the total number of onshore wind turbines by 2030.

Following months of debate and lobbying by renewable energy industry groups in Denmark, the government has reached an agreement with all the parties in the Danish parliament to support the green transition to 2030.

The Danish government said the "ambitious" new deal includes "massive investment" and a pledge to phase out coal by 2030.

A number of tax reductions for the electricity sector have also been agreed.

For wind developers, the agreement sets out plans to offer three new offshore wind projects by 2030, totalling 2.4GW.

The first 800MW site offered in 2019/20 is expected to be online between 2024 and 2027, however transmission costs may be included in the tender cost -- a change from previous Danish offshore tenders.

Two further 800MW sites are expected to be offered in 2021 and 2023, according to the agreement document.

According to the agreement, the government expects offshore wind will be able to produce green electricity "under market conditions without public support".

The government has also left the door open for the projects to be larger than 800MW, if the economics of offshore wind change – as they have been doing rapidly in the last couple of years.

But, in an effort to increase local support for offshore wind projects by moving them further from shore, the government will allow municipal governments to oppose projects up to 15km from shore – an extension from the current 8km limit.

Onshore support

The government is also planning to hold technology-neutral tenders.

An allocation of DKK 4.2 billion has been set aside "to tender where different technologies such as onshore wind turbines and solar cells can compete to supply green electricity for the lowest price" between 2020 and 2024, the government announced.

The government is also planning to reduce the number of wind turbines installed in Denmark. Of the roughly 4,300 machines installed today, the government is aiming to reduce this to 1,850 by 2030.

"The parties agreed that the number of [onshore] wind turbines should be significantly reduced over the agreement period and the following years, and that future wind production will gradually be prioritised offshore, based on the expectation that price and technological development will support this development," the energy agreement states.

Reaction

The Danish Wind Industry Assocation (DWIA) was broadly happy with the deal, and was thankful it was finally signed.

"A united parliament has secured a broad and ambitious energy agreement that brings Denmark into the group of countries that now have plans for expansion with green energy towards 2030.

"The agreement includes many of the initiatives that the wind turbine industry has sought, DWIA therefore welcomes the agreement."

DWIA chief executive Jan Hylleberg, however, admitted the reduction in the number of onshore wind turbines, was regrettable.

"Of course we are sorry for the negative tone concerning onshore wind and we would have liked to see a more aggressive schedule for offshore wind," Hylleberg said.

Lars Aagaard, CEO of trade body Dansk Energi, added: "The future is electric. With the energy agreement, politicians move to greener consumption. The Danes get access to much more green power, and it becomes cheaper.

"The agreement shows the rest of the world who is world champion in both making green power and using it effectively for the benefit of climate and economy," Aagard added. 

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Windpower Monthly Events


Latest Jobs