energy in denmark a framework for renewable energy · 2019-08-14 · renewable energy in domestic...

Energy in Denmark – a framework

for renewable energy

Lars Georg Jensen

Chief Adviser, Energy Systems, Danish Energy Agency

Dublin, RE Summit 2016

December 9, 2016Danish Energy Agency

Danish Energy Agency


Danish Energy Agency

ENERGY EFFICIENCY

ENERGY RESOURCES

ENERGY SUPPLY &

REGULATION OF WATER AND

WASTE

ENERGY SYSTEMS

TELECOMS

GLOBAL COOPERATION

• Established in 1976

• Agency under the Ministry of Energy,

Utilities and Climate

• Responsibilities:

• Energy production and

supply & economic

regulation of water and

waste sector

• Energy consumption

• Energy economic and

scenario analysis

• Telecoms

Denmark – 43 years ago


Today: Green highlights


• Energy consumption per GDP-

unit is lower than in any other

EU-country.

• The world’s highest share of

new renewables (non-hydro) in

electricity generation –

56 % in 2015.

• World leader in advanced

energy technologies - district

heating and CHP, wind

turbines, biomass plants,

energy saving technologies

• 10 billion Euro export of energy

technologies (12% of goods

exports), app. 60% green tech).

Gross Energy Consumption 1975-2015


From oil to a mix of fuels

PJ

Climate adjusted

Green Growth Track Record- doing more with less


60

70

80

90

100

110

120

130

140

150

'90 '95 '00 '05 '10 '14

-33 %

-8 %

+41%GDP - fixed prices

GHG emissions

Gross Energy Consumption

Political focus Events and Initiatives

1970’s Security of supply

Independency from Middle East oil

Energy savings

Oil crises

Coal replaces oil in power prod.

First national energy plan

1980’s Combined heat and power

Natural gas

Feed-In-Tariffs

Energy taxation

National Heat Plan

Natural gas exploration in North Sea

and infrastructure

No to nuclear power

1990’s Decentralized combined heat and

power

CO2-reductions

No to new coal power plants

Energy Plan: Energy 2000

CO2-taxes, roll out of decentr GHP

2000’s Liberalization

Efficiency

Renewable Energy deployment

EU internal market

Unbundling

FIT’s for RE

2010’s Independency from fossil fuels

Integration of large amounts of RE

Electrification

Efficiency of supply monopolies

Commission on CC Policy

Energy Agreement 2012

Tendering models for RE

EU Energy Union

New energy plan to 2030?December 9, 2016Danish Energy Agency

Focus and Initiatives over time

Centralized production in the mid 80’s Decentralized production of today

• Decentralized CHP

• Wind mill park

• Centralized CHP

Legend:

A well hidden secret: From

Centralized to Decentralized CHP

It’s about Policy



Dialogue with

sector stakeholders

Long term energy

strategies and

agreements

Cost-effective subsidy schemes and consumption-driven taxes on fossil fuels

A stable framework

with flexibility

Key Elements of Danish Energy Policy over time

The current Energy Agreement- 2020 targets and means

OBJECTIVES:

Increased share of renewable energy

Reduced energy consumption and GHG emissions

Offshore wind power 1400 MW

Total wind power 6.500 MW

Renewable energy in production

processes

Biomass for heating

Grid and distribution

companies obliged to reduce

consumption

Additional minor initiatives


The EU – Regionalization of the

Energy Policy


• Significant economic benefits derived from greater integration of markets across boarders*

• Increased regional cooperation to come

• The European Union – a driver of closer cooperation:

• EU 2030 energy strategy

• State aid guidelines on environment and energy

• The European Energy Union aimed at securing affordable and climate-friendly energy

• Implementing the EU Energy Union –Integrated National Energy & Climate Plans

* Booz & Co.: ”Benefits of an integrated European energy market”, report from july 2013 for the European Commission.

Renewable Energy


Denmark’s Current Power Mix (2015)


Fossil44%

Wind41.8%

Biomass11%

Solar PV1.8%

Other1.5%

Electricity consumption

based on type of input

Total share of RES: 56 %

Renewable energy in domestic energy supply 1995-2015


0.0

10.0

20.0

30.0

40.0

50.0

60.0

1995 2000 2005 2010 2015

Share of renewable energy in domestic electricy supplyPct.

Wind Power


Wind Power - key points

- Map wind resources

- Consider designating areas to wind turbines

- Cluster wind turbines in the landscape

- Define clear noise limits

- Grid connection and planning

- Public acceptance

- One-stop-shop

Danish Energy Agency December 9, 2016

On shore wind resources and

population density for Denmark

18Danish Energy Agency December 9, 2016

Offshore Wind Power


Approach to Offshore Wind


Establishing well-defined and attractive

conditions for applicants via:

• Strategic offshore planning process and

transparent tender procedures with fully

consented environmental impact

assessments before the submission of

the tenders.

• Timely establishment of grid connection

guaranteed by the Danish state and paid

for by electricity consumers.

• Fixed feed-in tariff

• Truly one-stop-shop permitting process

Tenders

Calls for tenders for

specific screened

areas

Guaranteed fixed

prices pr. kWh

determined in the

concession agreement

Direct competition –

price only awarding

criteria

Role of the Danish Energy Agency

• Responsible for the call for tenders

• Contracting authority

• Responsible authority for EIA offshore

• One-stop-shop for permits

• Planning of future wind farms

• In dialogue with the bidders in the call for tenders to ensure cost-reducing

initiatives


Wind capacity in Denmark (2012)


Renewables in Heat


Denmark’s Current Heat Mix (2014)


Heat consumption based on

type of input

Total share of district heat: 51 %

Total share of direct RE: 23 %

Oil6%

Natural Gas16%

RE23%

Electricity4%

District Heat51%

Other 0%

*w/o manufacturing industry


Transforming District Heat

0

10 000

20 000

30 000

40 000

50 000

60 000

1995 2000 2005 2010 2011 2012 2013 2014

TJ

Year

Natural gas

Coal

Biomass

Other RE

Other fossilfuels

Oil1%

Natural gas19%

Coal20%

Waste heat2%

Waste9%

Solar1%

Biomass46%

Biogas2%

Other0%

Bioenergy


Solid biomass in gross domestic energy consumption, Energistatistikken, 2014


Solid Biomass in Energy (2014)


Biogas Production

More than 150 biogas

producers in Denmark

Support schemes for different

end-use- Electricity

- Heat

- Upgraded to the natural gas grid

- Process

- Transport

0

2

4

6

8

10

12

14

16

18

20

2012 2014 2016 2018 2020 2022 2024

PJ

Year

Process andtransport

Upgraded tonatural gas grid

Electricity andheat

Integrating RE in the power system


Danish electricity system

• Denmark is a transit country for trade

• Increased system flexibility for integrating wind and solar power

• Success of Nordic market is integration of different technologies over a large geographical area resulting in more robust national power systems

Danish electricity system will soon be

dominated by variable RE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Dem

an

d (

%)

Dem

an

d (

TW

h)

Demand covered by Danish wind power Demand covered by other generation & imports

Wind power as % of consumption

Price Taker due to Cross Border Electricity Connections


Same price in all

neighboring

countries

Same price in

Denmark and the

Nordics

Same price in

Denmark and

Germany

Different price in

Denmark than in

neighboring

countries

App. 20 pct.

of the time

App. 50 pct.

of the time

App. 20 pct.

of the time

Ca. 10 pct.

af tiden

Latest developments…

• Offshore/near coast 350 MW wind park at

6.4 Eurocents/kWh

• World record low price for offshore 600 MW

wind park: 5 Euro cents/kWh

• PSO to be phased out from 2017-2022 and

become part of annual national budget.

• New policy target: 50 RE in 2030 of overall

energy consumption.


Thank you for your attention!

Any questions?

Read more at www.ens.dk


energy in denmark a framework for renewable energy · 2019-08-14 · renewable energy in domestic...

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