Danish Offshore Wind Experience

Anne Højer SimonsenDeputy Director GeneralDanish Energy Agency

Ministry of Climate and Energy

Advantages of Wind Power

• Security of supply• Alleviation of

energy imports

• Environment • climate change

mitigation • conservation of

biodiversity

• Export options• New jobs

16 years of experience offshore

• First Danish offshore wind farm 1991

• Strategic mapping 1995• Capacity now 423 MW.

(3100 MW incl. onshore) • Strategic assessment for

future location of 5200 MW offshore wind power

• 2 x 200 MW being built to go on-line in 2009 and 2011. The projects are on track

• 2011 app. 850 MW offshore

National averageat normal wind conditions 20% of

electricity demand

National average 2006 - 17%

National average January 2007 - 36%

Western Denmark January 2007 - 41%

Wind Power Production

Challenge: To Feed the Grid with Wind Power(Western Denmark as an example)

Key Instruments to promote REHistoric perspective

Public support to research, development and demonstration of RE-technologies

Investment grants for standardized RE-equipment

Favourable prices for electricity fed into the public grid

A suitable legislative and planning framework -supporting the local initiative

Agreements between the Government and the utilities: Wind power programmes and biomass agreement

Large scale integration

• Denmark has very strong interconnectors to neighbouring countries

• Nord Pool is a level playing field• Short gate closure times to allow trades

close to real time• Further integration is possible• Storage and demand side management

could serve as future options• EU: cross border solutions

Decoupling of economic growth and energy consumption

60

80

100

120

140

160

1980 1983 1986 1989 1992 1995 1998 2001 2004

Inde

x

Primary Energy

GDP

Intensity

TenderingAim to bring down financial risk

• Screening for site suitability

• Tender: Fixed price in 10-12 years

• TSO to finance, construct and operate transformer station and sea cable

• TSO obliged to connect wind power and strengthen grid if necessary

• Security that grid connection is available in due time

• Financial compensation if the power produced is curtailed

• One stop shop communication

Support scheme for offshore

• Tender – Cheapest, fastest and most beautiful

• Fixed price in 50.000 full load hours

• = 10-15 years of production

• Low bids:

• Horns Rev 2 = € cent 6,7 per kWh

• Rødsand 2 = € cent 8,3 per kWh

• 26 sites of 200 MW identified

• 5200 MW• Equivalent to 8 % of

total demand or 50% of electricity demand

• Consultation answers is taken into account

• A sensitivity analysis is too be conducted and used in the decision-making process for the actual site selection

Preparing for the future 2025

Conclusions from the Environmentalprogramme

• Public acceptance • Migrating birds avoid

collision• Seals behaviour not

affected• Harbour porpoises

return to the sites• Significant artificial

wreck effect observed

New site: Djursland-Anholt

In conclusion

• Large scale integration possible• A doubling of offshore capacity on track

for 2009-2011• Tender procedure combined with TSO-grid

financing and one stop shop brings down financial risks

• Future locations identified• Environment no problem if sites are

planned properly• One-stop-shop approval procedure

Thank you for your attention

Figures and furtherinformation available from www.ens.dk/wind