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White papers for a green transition

How Denmark utilises windin the energy sector

WIND ENERGY

MOVING AHEAD

INSIDE THIS WHITE PAPER

Acting the way the industry needs

When dialogue, transparency and flexibility

become more than just words

Denmark to meet 50%

wind energy in 2020

Cross-border electricity market and good

connections to neighbouring markets ensurefirst-class security of supply

Making offshore wind attractive

and accessible to investors

Offshore wind projects are politically

and financially attractive investments


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WIND ENERGY MOVING AHEAD

How Denmark utilises wind in the energy sector

Version 2.0

Printed October 2015

Front page photo

Cover photo showing Anholt Offshore Wind Farm. Photo: DONG Energy

Editor in ChiefState of Green

Technical EditorDanish Wind Industry Association

Contributors Danish Energy Agency: Morten Bk, Peter Sehestedt and Torsten Malmdorf

Copenhagen Infrastr ucture Partner s: Christina Grumstrup Srensen and Stephanie Bendorff Rpcke

Danish Energy Association: Lars Aagaard Danish Ministry of Energy, Utilities and Climate: Lars Christian Lilleholt

Danish Business Authority : Niels Bjrkbo m

Danish Wind Industry Association: Jan Hylleberg

Energinet.dk: Peder stermar k Andreasen

Middelgrunden Wind Turbine Cooperati ve: Erik Christiansen

Siemens Wind Power: Michael Hannibal

Vestas Wind Systems: Anders Vedel

To order copies of this white paper or receive information about other related

publications, please contact State of Green at [email protected].

Copyright State of Green 2015


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With more than 40 years of experience and

a world-class energy sector, Denmark is

uniquely positioned to play a key role in the

future market for wind technology.

Since the oil crisis in the early 1970s Den-

mark has moved towards a national energy

system that is more and more reliant on

renewable energy sources, with wind en-

ergy playing a key role. The global demand

for energy is expected to rise dramatically

in the coming years. Wind energy will un-

doubtedly be an important part of the solu-

tion to this and connected challenges relat-

ed to climate change and securit y of supply.From 2000 to 2013 global installed wind

power capacity increased with an average

growth rate of 25% per year. According to

the IEA wind energy could account for 8%

of the global generation mix in 2040.

Largest share of wind in the world

Denmark has a total installed wind energy

capacity of more than 5,000 MW and on

windy days, wind turbines produce more

than the domestic Danish demand. Fur-

thermore, Denmark is the country in the

world with the largest share of wind inte-

grated in the grid. This means that more

and more countries - developed and devel-

oping - are looking towards Denmark for

inspiration and cooperation. We shall con-

tinue to use this unique position to gener-

ate more sustainable economic growth and

jobs in both Denmark and abr oad.

A world class wind energy sector

Danish wind companies belong to the top

league globally. In 2014, the Danish wind

sectors export reached DKK 53.5 bn (EUR

7.1 bn). Almost 17% more than the year be-

fore. Furthermore the wind energy sector

employed more than 28,000 people. Wind

turbines have undergone considerable

technological advances and wind has be-

come one of the most competitive renewa-

ble energy systems. This is the result of in-

vestments and the work and commitment

of several innovative companies backed by

world leading research and knowledge in-

stitutions and unique test facilities.

But global competition is fierce and new

and innovative technologies are gaining

ground. We should therefore ensure good

framework conditions and world class re-search and innovation facilities so that the

Danish wind energy sector will continue to

be a global front-runner in the future.

A FUTURE OF WIND ENERGY

The global market for wind energy is gaining ground aswind technologies are getting more and more

sophisticated and competitive

Lars Christian Lilleholt

Danish Minister for Energy, Utilities and Climate

FOREWORD 3


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ABOUT THIS

WHITE PAPERIn this White Paper we have gathered 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 we work with integrating

wind, invest in wind and optimise products to make more energy for less money.

Denmark has decided to lead the transition to a green growth economy and be-

come independent of fossil fuels by 2050. Completely dependent on imported

oil for decades, Denmark was severely affected by the oil crises of the 1970s and

it was decided to take a new path. As a result, renewable energy and in particu-

lar wind energy has become a Danish stronghold.

The content of this White Paper is meant to serve as a helpful tool for interna-

tional stakeholders who wish to get an overview of the Danish way of utilising

wind, who want to spot the potentials of wind energy, or who are looking for

Danish business partners.

Integrating 10, 20, 30, 40 or 50% wind energy or even more in the electricit y sys-

tem is no easy task just as agreeing on the political framework for large invest-

ments and getting the citizens on board for new projects is not something eas-

ily achievable. But with this White Paper we want to show you that it is feasible

through collaboration.

We hope you will be inspired.


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INDEX

Wind is a major part of the solution ...................................................................................... 3

There is no status quo in the wind industry...................................................................... 6Cost reductions and alliances are keywords in the Danish wind industry

Acting the way the industry needs....................................................................................... 8When dialogue, transparency and flexibility become more than just words

Denmark to meet 50% wind energy target in 2020 ....................................................10A cross-border electricity market and good connections toneighbouring markets ensure first-class security of supply

Electrification equals value from wind energy.............................................................. 12Why electrification is necessary for the Danish energy system

Bringing the neighbours on board....................................................................................... 14A specialised wind turbine task force is assistingthe planning process of onshore wind projects

Do you speak wind turbine?................................................................................................... 16

Denmark from above................................................................................................................. 17

Case studies

The worlds most depicted offshore windfarm is 50% locally owned ................................. 18

Denmark a pioneer in wind energy ........................................................... ................................ 20

sterild test centre ensures Siemens Wind Power a competitive offshore advantage ........22

Advanced nacelle testing integral part of Vestas product development .............................. 24

Making offshore wind attractive and accessible to investors ............................................... 26

Sustainable wind export business .................................................................................. ........... 28

Selected examples of danish footprints in offshore wind ..................................................... 30

Denmark - the supplier hub ............................................................. ............................................ 31


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Photo: Keenpress / Wind Power Works

6 THERE IS NO STATUS QUO IN THE WIND INDUSTRY


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What few people believed 40 years ago is

now a reality with a booming global indus-

try. Over the years, the wind industry has

fine-tuned its ability to harvest energy

from the wind in a controlled manner that

benefits millions and millions of people. The

groundwork for much of the technological

development has taken place in Denmark.

Today, nearly 500 companies work within

the Danish wind energy sector, generating

more than 28,000 jobs including the whole

supply chain (2014) and combined revenue

of DKK 84.4 bn (EUR 11.31 bn) of which

more than 60% is exported.

The Danish wind industry accounts for

5.2% of the total Danish export in 2014;

this is the highest level since 2008-2009.

More energy for less money

Even though the Danish wind industry has

developed into a highly professional and

well-established one, the objective has

remained the same since the beginning. At

the core, all work evolves around reducing

the Levelized Cost of Energy (LCOE) - theprice of the electricity production over the

lifetime of a wind turbine. The wind indus-

try has come far and the technology holds

huge potential for becoming even cheaper.

While the price of wind energy continues

to decline, investments are going up. Proof

of this is found in Europe, where wind en-

ergy was the favoured energy technology

in 2014, with a grid connected wind energy

supply more than double that of coal and

gas combined.

Danish companies are driving the develop-

ment of a lower LCOE. Strong cross-indus-

try cooperation along with unique testing

facilities are creating the foundation for

an innovation hub found nowhere else in

the global wind industry. Today, energy

from onshore wind turbines is cheaper

than energy from new fossil energy plants

in many markets, including Denmark, and

across the industry efforts are put into

reducing the cost of offshore wind in a

similar manner. Producing energy offshore

requires a new way of thinking and this

has led to a new way of organising the in-

dustry in Denmark.

Alliances are vital

Abandoning the idea of wind turbine manu-

facturers dealing with all of their sub-sup-

pliers, the industry is now moving towards

organising in clusters offering concentrat-

ed and packaged solutions. This entails an

even closer collaboration between Danish

wind turbine manufacturers and clustered

sub-suppliers, enhancing manoeuvrability

and the ability to innovate. This develop-

ment is evidence of the continuous profes-

sionalisation of the Danish wind industry

that acts as a strong competitive advan-

tage - only to be developed further in the

coming years.

With wind energy having one of the great-

est potentials for integrating more renewa-

ble energy across the world, it is unthinkable

for the Danish wind industry just to maintain

the status quo. The wind industry is facing

before yet another era of progress that will

benefit not only job creation and energy se-

curity, but also people and climate.

THERE IS NO STATUS QUO

IN THE WIND INDUSTRYCost reductions and alliances are keywords in the Danish wind industryCompanies in the Danish wind industry are at the

very forefront of the global wind expansion, driving the

continuous development of evermore effective and

cost-efficient wind turbines

Jan Hylleberg, CEO, Danish Wind Industry Association

THERE IS NO STATUS QUO IN THE WIND INDUSTRY 7


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The industry-friendly Danish tender approach for setting up offshore windfarms is a result of many adaptations

over time. It consists of three parts:

A strategic offshore planning process with transpar ent tender procedures

A guaranteed timely establishment of grid connection

A fixed settlement price and the one-stop-shop permitting procedure Photo: Danish Energy Agency

8 ACTING THE WAY THE INDUSTRY NEEDS


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Denmark has set ambitious political tar-

gets for the use of wind energy. In 2010,

the Danish Commission on Climate Change

Policy presented its recommendations for

the total phasing out of fossil fuels.

Set in place in 2012, the current energy

agreement includes a target of applying

1,900 MW of new capacity from onshore

and offshore wind. By the end of 2021, this

capacity needs to be realised. As a result,

wind energy is expected to cover 50% of

Danish electricity consumption in 2020.

The agreement secures a substantial ex-

pansion of the Danish wind energy capac-

ity offshore, near-shore and onshore. The

offshore expansion alone corresponds to

the annual electricity consumption of 1.4

million average Danish households. The

first step to establish more offshore wind

farms is a strong and smooth planningphase, which reflects the importance of

flexibility in the tendering processes, just

as the ability to conduct dialogue with

the market and to learn from experience

is paramount for success. Only then can

the authorities attract the most competi-

tive bids for these complex projects which

carry large economic commitments and

which are influenced by political currents.

Tenders that workThe Danish Energy Agency has strived to

develop a scheme that delivers on these

parameters. As such, the Danish tender-

ing approach for setting up offshore wind

farms is the result of many adaptations

over time. In fact, Denmark has the longest

experience with tenders for offshore wind

energy in the world. The strength of the

Danish approach can be divided into three

areas. Firstly, a strategic offshore planning

process with transparent tender proce-

dures and fully consented environmental

impact assessments in place before the

submission of tenders. Secondly, a timely

establishment of grid connection guaran-

teed by the Danish state and paid for by the

electricity consumers. Thirdly, a fixed set-

tlement price and a unique one-stop-shop

permitting process, in which the Danish En-

ergy Agency grants all the required permits

and coordinates with other relevant public

authorities.

Dialogue as a new Danish trademark

In the offshore market change is a constant

and each tender is different from the next.

What we have learned is that the tendering

authorities need to speed up on their lear n-

ing capacity. If we want to ensure the best

possible market prices and projects in our

tendering procedures, we have to be part

of the changes more or less at the same

time as they happen.

This is why dialogue has become the new

trademark of the Danish tendering proce-

dures and why the Danish Energy Agency

is promoting a vision where authorities and

industry act like equal partners. Our goal is

to share this vision with all major offshore

countries and we invite all tendering au-

thorities in Europe to start a dialogue of

their own. Ultimately, this dialogue has the

potential to create a new network of gov-

ernance and help establish a common vi-

sion of offshore tendering in the European

market.

ACTING THE WAY

THE INDUSTRY NEEDSWhen dialogue, transparency and flexibilitybecome more than just words

On the path to becoming a nation independent of fossil fuels

with large amounts of wind energy in the electricity grid, having

the right political framework plays a major role. Denmark leads

the way in making political decisions that the industry needs.

But how did we get to this point, and what are the big challenges

that still remain?

Peter Sehestedt, Special Advisor, Danish Energy Agency

One-stop-shop means full speed ahead

The Danish tendering process is unique,

and the one-stop-shop permitting proce-

dure plays a central role in this. To ensure

a rapid and as-little-as-possible bureau-

cratic application process, the Danish En-

ergy Agency grants all the required permits

and coordinates with other relevant public

authorities. This results in a single point of

access for enterprises or industry in need ofassistance on issues related to permits and

tendering procedures and this is one of

the political framework conditions leading

Denmark towards a future as independent

of fossil fuels.

ACTING THE WAY THE INDUSTRY NEEDS 9


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Photo: Palle Peter Skov

Map of Denmarks transmission grid and interconnectors

Denmarks transmission grid (400 and 150/132 kV) and the inter-

connectors to Germany, Sweden and Norway. Interconnectors

have a total capacity of more than 5,500 MW.

The transmission grid is designed to handle long fluctuations and

transport electricity over large distances, e.g. from on- and off-shore wind farms in the west to the Danish capital in the east. Den-

mark often acts as a transit country, enabling power from Norways

hydroelectric dams to be sent to Germany and Central European

consumers or the other way around, if wind turbines and solar cells

generate energy that Norway wants to buy.

10 DENMARK TO MEET 50% WIND ENERGY IN 2020


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2013

Electricity consumption Electricity generation from wind turbines

Week 1 Week 1Week 2 Week 2 Week 3 Week 3

2035

It cant be done. Its not possible to inte-

grate more than a few per cent wind energy

in an electricity system. These are 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 sys-

tem, we are not presenting them with a

theoretical calculation or a case stor y. What

they see is a quiet control room without

panic and the electricity system that sup-

plies Danish households and businesses

with electricity which has one of the high-est levels of security of supply in Europe.

This is possible because Denmark has a

well-developed electricity grid and strong

connections to our neighbouring countries

Norway, Sweden and Germany (see map).

50% wind in 2020 and more to comeWe are making good progress to meet the

objective that wind energy will cover 50%

of the Danish electricity consumption. In

2014, the figure was 39.1%, and with the

wind energy generated by future offshore

wind farms in particular, we will reach the

equivalent of 50% wind energy in electrici-

ty consumption.

Denmark does not have mountains, rivers

or many hours of sunshine, but we have

wind and a unique location. Wind energy

is one of Denmarks most remarkable re-

newable energy sources and it will become

even more important after 2020. Looking

towards 2035, for example, there will be

many more days where wind energy gener-

ation will exceed our consumption.

From generation to consumptionWe are transitioning from an energy system

where generation is adapted to consump-

tion to one where consumption is adapted

to generation. That is why electricity must

be able to flow far, across borders and in

large quantities. The prices must reflect the

fact that there are days with ample gener-

ation or high demand, and electricity must

increasingly be integrated into flexible con-sumption, such as heat pumps and electric

vehicles. Only by taking a cross-border ap-

proach and ensuring maximum utilisation

of domestic flexibility will we be able to

secure an effective and successful energy

transition.

New interconnectorsTo be able to handle this, we have joined

forces with TenneT, TSO for power and gas

in Netherlands and Germany, to build a 700

MW and 320 kilometre submarine cable

linking the Dutch and Danish electricity

systems - and together with the National

Grid, TSO for power and gas in England, we

are looking into the possibilities of laying a

600 kilometre cable to the UK.

Today, Denmark is part of a cross-border

Nordic market, and we are integrated with

Central Europe. Even though we as consum-

ers do not notice the changes, we buy and

sell electricity across borders hour by hour.

Electricity generated by wind, water, sun,

coal, gas and nuclear power flows freely back

and forth depending on supply and demand.

But the future requires even more open-

ness and cr oss-border thinking. A well-func-

tioning market is crucial if Denmark and the

rest of Europe are to maintain a high level of

security of supply.

New market modelWith increasing amounts of renewable en-

ergy, the current business model for elec-

tricity is put under pressure, where espe-

cially conventional generators based on

fossil energy sources are challenged. In the

long term this creates a risk of insufficient

capacity during future periods with limited

renewable energy available, e.g. during pe-

riods without wind.

We have therefore invited industry players

to a sector-wide cooperation with the aim

of developing a new market model that will

help ensure a high level of security of sup-

ply and contribute to a healthy investment

climate in the energy sector, and further-

more encourage interaction and flexibility

across the value chain.

Wind production and powerconsumption 2013-2035

Today, wind rarely exceeds the total power

consumption. In the future this will happen

more often. Here shown in three weeks in

2013 and three weeks in 2035.

DENMARK TO MEET 50%

WIND ENERGY IN 2020A cross-border electricity market and good connections toneighbouring markets ensure first-class security of supply

We are in the process of transitioning from an energy system where generation is

adapted to consumption to one where consumption is adapted to generation

Peder stermark Andreasen, CEO, Energinet.dk, the Danish TSO responsible for supplying Denmark with electricity and natural gas

DENMARK TO MEET 50% WIND ENERGY IN 2020 11


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Flexible production requires flexible consumption and a

strong underlying system

Clean electricity from wind turbines can be used to substitute

CO2-emitting energy consumption in the heating sector, in industry

and in households. This benefits the environment and the climate

but in order to reap the full value of wind energy, we need to focus

on a better utilisation of it.

Integrating large volumes of wind energy into the energy system

has proven possible, but wind is dependent on a strong back-up

system and good market conditions for selling electricity via inter-

connectors and flexible electricity usage.

12 ELECTRIFIC ATION EQUALS VALUE FROM WIND ENERGY


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2014

Development of electricity consumption and wind energy production 2014-2020

0

20

40

60

80

100

120

140

160

2015 2016

Index 2014 = 100

Wind energy production (index)Electricity consumption (index)

Source:DanishEner

gyAgency

2017 2018 2019 2020

Danish electricity generation has under-

gone significant changes during the last

two decades and Denmark is on the cutting

edge when it comes to integrating wind en-

ergy into the electricity system.

Wind is a positive story already20 years ago the Danish electricity produc-

tion consisted of 96% fossil fuels, which

emitted 30 million tons of CO2. In 2013,

these numbers had changed to 54% fossil

fuels, resulting in a 55% decrease of the

CO2-emissions.

So far, the increasing wind share has not

changed the continuity of supply. In 2013,

Danish electricity consumers had electric-

ity in their power outlets 99,997% of the

time.

The potential for electrification

Even though we use most of the electricity

from wind in households, industry, for elec-

trical cars and in heat pumps in the heating

sector, the transformation of the electric-

ity system moves much faster than the

electrification of the energy consumption.

The electricity consumption is expected to

grow by 3 TWh until 2020, while the new

wind production is expected to grow by 6.5

TWh.

Obviously, wind energy is a fluctuating pro-

duction form. Given the rapid build-out it

needs to be accompanied by further incen-

tives to use and store the electricity when it

is produced and a strong backbone of flexi-

ble power generation is also required.

The curves in the figure illustrating devel-

opment of electricity consumption and wind

energy production 2014-2020 clearly show

that the expected expansion of wind pro-

duction exceeds the changes in electricity

consumption. There is a clear mismatch be-

tween the growth of the two, which giventhe flexible nature of wind energy needs

to be addressed, if we are to make the most

value of our wind energy production.

The Danish Energy Association has calcu-

lated the technical potential of electrifying

the end consumption in the district heating

sector, the individual heating sector and in

the industry. The potential comes out at

approximately 13 TWh/year, which is more

than a third of the current Danish electricit y

consumption. In other words, there is a po-

tential for utilising all new wind production

in a flexible manner, creating more value for

the Danish wind model.

Combined with strong, available intercon-

nectors to neighbouring countries, a back-

bone of power generation plants and a fast

development in bringing down costs for

electricity storage, we are confident that

we can continue the wind expansion and

use the fluctuating production in an intelli-

gent way.

In order for that to happen we need to see

Danish legislators consider and decide upon

difficult political issues such as securing

continued back-up capacity from power

plants, an intensified electrification of theDanish energy system and constraints on

interconnectors.

Denmark has led the way and will continue

to do so by showing the world that it will be

possible to introduce more than 50% wind

energy into the electricity system. But we

need to take the necessary measures to

guarantee the continued balance of the

electricity supply and to create maximum

value of the winds changing production

levels.

Keywords for that to happen are intercon-

nectors, flexible electricity use and reliable

backup production when wind is absent.

ELECTRIFICATION EQUALS

VALUE FROM WIND ENERGYWhy electrification is necessary for the Danish energy systemDanish electricity generation will consist of at least 50% wind

energy in 2020. This requires a focus on electrification and

Denmark needs to address the challenge of smart energy

Lars Aagaard, CEO, Danish Energy Association

Development of electricity consump-

tion and wind energy production

2014-2020

Wind energy produced 3% of the electrici-

ty consumption in 1994. In 2014, this num-ber had increased to 39.1% and by 2020 at

least half of the electricity consumption

will be delivered by wind turbines. The gen-

eral electricity consumption is expected to

grow at a much slower rate.

ELECTRIFIC ATION EQUALS VALUE FROM WIND ENERGY 13


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www.vindinfo.dk a Danish shortcut

In 2012, a national committee issued recommendations for what to focus on in order

to optimise the planning processes for wind project developments. A central point was

improved public access to information. In response to this, four agencies have gathered

all available governmental information about wind energy in Denmark on one website:

www.vindfo.dk. This way, citizens, local authorities, and wind project developers have

easy access to information.

The introduction of task forces

The Danish Wind Turbine Task Force is a new concept within the Danish public administration. Free of charge, the task force assists local

authorities in matters such as siting the turbines and the planning process. Public acceptance is the key to deflect the problems that can

occur when planning new onshore wind farms. Photo: Lia Maria Hauch Kaufmann

14 BRINGING THE NEIGHBOURS ON BOARD


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Step 1Invite stakeholders

Citizens

Business community

Networktopics

Network meetingsSecreterial

function


function

Network meetings Secreterialfunction


function

Visiting wind turbine sites,enhancing dialogue

Input on decision onwind turbine plant

Growth potential forcommunity developmentAuthorities

Step 2Establish workshops

Step 3Network meetings

Step 4Network activies and results

Source: Antropologerne

The 1970s energy crises in Denmark and the

rest of Europe sparked an increased interest in

renewable energy. During the 1970s, the first

wind turbines, less than 50 meters tall, were

installed all over the country through local in-

itiatives with no general planning and often

through citizen initiated wind turbine coopera-

tives. Today, onshore wind turbines as high as

150 meters are installed on a commercial scale,

which requires larger areas and substantial in-

vestments. These kinds of wind turbines are

often erected and owned by people living far

from the wind turbine areas and that is one ofthe reasons why it has become increasingly

difficult to achieve local acceptance of wind

energy projects.

A complicated process

In Denmark, local authorities are responsible

for planning onshore wind turbine installa-

tions, and the planning processes are often

long and complicated. In some municipalities,

local politicians stop the planning activities at

relatively late stages, due to local public op-

position against installing wind farms in the

specific area. This is a problem, firstly, because

it often results in frustration and local division

between opponents and supporters of wind

energy. Secondly, because one of the paths

to becoming free of fossil fuels, as written in

the political energy agreement from 2012, is

by installing 1,800 MW of new onshore wind

capacity before 2020 - 1,300 MW of which are

expected to replace existing, aging wind tur-

bines.

Wind Turbine Task Force and state

assistance

In order to assist local authorities with these

challenges, a Wind Turbine Task Force was es-tablished in 2008. Furthermore, four financial

incentive schemes were introduced a year lat-

er. These initiatives both aim to increase local

interest in and support for the installation of

new, modern wind turbines. An important role

of the task force is to solve problems as early

as possible and assist the local authorities with

the planning process.

Citizen involvement takes up an increasing-

ly larger part of the planning process. It is our

experience that a good relationship between

citizens and the municipality is a crucial aspect

in achieving acceptance of new wind turbine

projects. Interviews show that many Danish

citizens are unhappy with the way planning

activities have been carried out previously.

Therefore, we have worked on finding new

ways to meet the public and to get them on

board at early stages in the planning process.

The figure illustrates how the citizens meet th e

authorities and business community at an ear-

ly stage in workshops and various networking

activities. These include public meetings with

display boards, discussion forums and visits to

existing and potential wind turbine areas. Tra-ditional citizen meetings usually only include

presentations by experts and panel debates

and come late in the planning process.

Through our work it has become clear to us

that municipalities must be more proactive and

direct in meeting the public. So far, feedback

from participants has been a call for clear, po-

litical statements when it comes to setting up

onshore wind farms.

BRINGING THE NEIGHBOURS

ON BOARDA specialised wind turbine task force is assistingthe planning process of onshore wind projects

Schemes focused on citizens and close municipal and state collaboration regarding citizen

involvement are just some of the approaches that Denmark takes in order to meet its ambitious

targets for CO2-reduction and the advancement of more renewable energy

Niels Bjrkbom, Head of the Wind Turbine Task Force, Danish Business Authority

1.Invite stakeholders:Ideally citizens should

be invited as a first step in a planning process

to participate in a debate about wind turbines

within their local community to kick start the

planning process of locating areas suitable for

possible wind turbines.

2.Establish workshops: Citizens and other

stakeholders with different opinions are em-

powered through constructive dialogue in a

workshop.

3.Network meetings: Network groups on

topics preferred by participants can be formed

in the workshops.

4.Network activities and results: Partici-

pants get to know and understand each other

better, qualified input to municipal plannersand political decision makers, participation in

field-trips, bottom-up thoughts etc. This cre-

ates an earlier dialogue and increases citizens

understanding and acceptance of the need for

new wind turbines.

BRINGING THE NEIGHBOURS ON BOARD 15


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Blade

As a rule of thumb, every MW installed offshoregenerates enough electricity for roughly 1,000

Danish households per day.

The share of wind in the Danish electricity

consumption has increased steadily during

the last years: 30% in 2012, 33% in 2013

and 39% in 2014.

In 2013 and 2014, the average capacity of an

onshore wind turbine installed in Denmark

was 2.8 MW.

The worlds largest wind turbine is currently being

tested at sterild The National Test Centre for Large

Wind Turbines. The turbine has a total height of 222

m, and once installed offshore the power it generates

will cover the daily electricity consumption of more

than 8,000 average Danish homes.

In 2014, 860 kW of wind energy were installed per

1,000 Danish citizen. In comparison, this number

was 250 kW for the other EU28 countries.

On the night of July 10, 2015, Danish wind turbines

produced 140% of the Danish electricity consumption.

The surplus was exported to Sweden, Norway and

Germany thanks to the interconnected grid

between the countries.

In its lifespan, a wind turbine can produce up

to 57 times the amount of energy that went

in to constructing it.

Transition

piece

Foundation

NacelleHub

Gear box

Generator

Tower

Monopile Tripod Jacket Gravit y Suction Jacket

bucket suction

bucket

Landing platform

Different types of foundations:


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Rnland17 MW2003

VesterhavNorth200 MW

Hvsre National Test Centrefor Large Wind Turbines

VesterhavSouth200 MW

Horns Rev 3400 MW2019

HornsRev 2209 MW2009

Nethe

rlan

ds

United Kingdom

HornsRev 1160 MW2002

Denmarks largest onshore wind farmis the 73 MW Nrhede-Hjortmosewind farmcommissioned in 2014

Global LightningProtection Services

Denmarks third largest onshorewind farm is the 34 MW LemKr wind farmcommissionedin 2012

Sby200 MW

Frederikshavn7 MW

Anholt400 MW2013

Tun Knob5 MW1995

Sejr Bugt

200 MW

Sprog21 MW2009

Smlandsfarvandet200 MW

Vindeby5 MW1991

Rdsand II

207 MW2010

Avedre Holme11 MW2009/2010

Middelgrunden40 MW2000

DELTADHI

Force Technology

DanishTechnologicalInstitute

Name of wind farm

Capacity in MW

Year of commissioning

House of Green

Bornholm50 MWKriegers Flak

600 MW2021

Sams23 MW2003

LORCLindoe OffshoreRenewablesCenter

sterildNational Test Centre for Large Wind Turbines

Blaest Blade Test Centre

Upon completion in 2015, Den-marks second largest onshorewind farm will be the 70 MWKlim Fjordholme wind farm

Selected onshore

wind farm Cable connections (Current)Public Available

Test Facility

Offshore wind farm

(Commissioned)Cable connections (Planned) Place of Interest

Near shore area

Possible installed capacity

Offshore wind farm

(Planned)Cable connections (Proposed)

The total Danish capacity onshore equals 3.739 MW The total Danish capacity offshore equals 1.271 MW


18/32

Photo: Danish Wind Industry Association

18 CASE: THE WORLDS MOST DEPIC TED OFFSHORE WINDFARM IS 50% LOCALLY OWNED


19/32

Set in a symbolic curving line in the wa-

ters outside Copenhagen, Middelgrunden

offshore wind farm stands as the image of

Denmarks world-renowned renewables

sector. The 40 MW wind farm was at the

time of commissioning in 2001 the worlds

largest offshore wind farm. Today, it covers

3% of Copenhagens electricity consump-

tion.

A particularly innovative model of pub-

lic ownership was used in the construc-

tion of Middelgrunden. To establish local

acceptance for the wind farm, groups of

local residents came together to form a

customised cooperative: Middelgrunden

Wind Turbine Cooperative. Through the

cooperative, almost 8,700 local residents

became co-owners of the wind farm and

bought together 40,500 shares. In the end,

this amounted to a local ownership of 50%

of Middelgrunden offshore wind farm. The

other 50% of the project is owned by the

utility company DONG Energy.

In the process, the key focus for Middel-

grunden Wind Turbine Cooperative was

on sharing information with the local resi-

dents due to the landmark position of the

wind farm just outside the Copenhagen

harbour. It was of great importance to in-

volve the local citizens in all phases from

planning and installation to the operational

phase. This has proven to enhance the lo-

cal involvement in the project, as well as

the will to invest. Thousands of citizens in

Copenhagen have visited the wind farms

information stands and construction sites

and thousands attended the opening of

the wind farm in May 2001.

The project has proven the necessity of lo-

cal information to ensure local involvement

and support for wind turbines.

FACTS ON WIND COOPERATIVES IN DENMARK

The cooperative movement has been part of the Danish story since the first consumer cooperative was created in 1866. Historical-

ly, the cooperatives have focused on the agricultural sector through for instance cooperative dairy and slaughterhouses but also

cooperative cold stores were common in Denmark in the 1950s. The general ideas behind the cooperatives are that both profits

and losses are shared bet ween the members in relation to their companys turnover, that the cooperative is open for new members

and that it is one vote per member at meetings regardless of the size and turnover of a member.

The same ideas are present in the Danish legislation on new wind turbines, which state that at least 20% of the ownership of new

turbines has to be offered to citizens as shares of approx. 1000 kWh (annual production). The exceptions include small turbines

meant for private households, turbines erected solely for research, test and development and not least wind farms, which are put

out to tender by the Danish state - primarily large project s of 400-600 MW.

The practise of wind turbine cooperatives started in the 1980s and the following 10-15 years most turbines were erected by the

cooperatives. The current law states that the option to purchase must firstly be offered to any citizen above the age of 18 living

within 4.5 kilometres from the location of the turbines. Remaining shares are to be sold secondly to other citizens of the munici-

pality in question. The idea behind wind turbines cooperatives and the option to purchase is to create a correlation between the

benefits and joy and the inconvenience of living close to a wind turbine.

THE WORLDS MOST DEPICTED

OFFSHORE WINDFARM IS 50%LOCALLY OWNED8,700 citizens are co-owners of Denmarks iconic offshore wind

farm Middelgrunden, located just off the coast of the capital

Copenhagen. Targeted information has played a key role in the

local involvement and support for the wind turbines

Erik Christiansen, Chairman of Middelgrunden Wind Turbine Cooperative

CASE: THE WORLDS MOST DEPI CTED OFFSHORE WINDFARM IS 50% LOCALLY OWNED 19


20/32

Photo: Danish Wind Industry Association

20 CASE: DENMARK A PIONEER IN WIND ENERGY


21/32

Wind mills and post mills were initially used

in the agricultural sector for grinding grains

and pumping water but in 1891, the Danish

physicist Poul la Cour started experiment-

ing with wind power as a source of electric-

ity. Supported by funds from the Danish

state, he created a turbine, which supplied

the school he was working at with direct

current and he even experimented with

storing wind energy. While ingenious, the

wind turbine could not compete with the

growing number of coal-fired power plants

and despite a brief blossoming during the

world wars, the development of the tech-

nology almost came to a standstill.

A renewed focus on windHighly dependent on imported energy,

the oil crises of the early 1970s lead to

increasing electricity costs in Denmark.

As a result, it became an objective to be-

come independent of imported oil and in

the mid-1970s, the Danish state started

funding a development program for wind

energy. This was followed by a test base

for smaller turbines in the late 1970s, as

industrious self-builders, grassroots and

entrepreneurs had started constructing

turbines for their own use. The first com-

mercial turbines with an output of 22 kW

were constructed by machinery manufac-

turers around 1979. As a result, the Danish

wind energy story has been one of both a

bottom-up and a top-down approach and

the strategy has paid off.

Harnessing the wind offshore

In a search for more efficiency and a lower

cost of energy, the size of the turbines hasgrown steadily over the years and while

most turbines in the early 1990s had siz-

es of up to 225 kW, the next generation of

wind turbines now reaches 8 MW. The larg-

er turbines makes it economically feasible

to harness wind offshore, where the wind

speeds makes up for the larger expens-

es. In 1991, the worlds first offshore wind

farm was erected in Denmark, when eleven

450 kW turbines were commissioned. Many

more offshore wind farms has seen the

light of day since 1991 and the next Dan-

ish offshore wind farms, Horns Rev 3 and

Kriegers Flak, will reach sizes of 400-600

MW.

The future of wind energyToday the Danish wind industry, employing

more than 28,000, holds a global market

share of more than 20% of all newly in-

stalled capacity and a study by the Danish

Energy Agency has concluded that onshore

wind energy has become the cheapest en-

ergy source for new electricity generationin Denmark, undercutting coal and natu-

ral gas. However, the future calls for even

more efficient turbines, overall cost reduc-

tions and a continued focus on the coop-

eration and strong partnerships between

the industry, the private sector and the

research institutions which has previously

characterised the Danish wind energy stor y.

DENMARK

A PIONEER IN WIND ENERGYThe use of wind as a source of energy in Denmark dates

back hundreds of years but the oil crisis of the 1970s lead to

a renewed focus on harnessing the natural forces and the

entrepreneurial ingenuity combined with a R&D focus

has given Denmark a pioneering role in wind

The development in Danish wind energy

technology is remarkable. The first com-

mercial turbines had an output of 22 kWand the blades in the photo, dated 1980,

are 7.5 meters long and produced for 55 kW

turbines. The blades of the newest offshore

turbines are more than 80 meters long.

Photo: Erik Grove-Nielsen.

CASE: DENMARK A PIONEER IN WIND ENERGY 21


22/32

Siemens Wind Power is the worlds largest provider of offshore wind turbines. Siemens Wind Power has delivered turbines to the

three largest offshore parks in the world: London Array, Greater Gabbard and Anholt Havmllepark.

Photo: Siemens Wind Power A/S

Offering test facilities is a keystone in the Danish wind industry

Test facilities are crucial for technological and system innovation in the Danish

wind industry. In order to maintain Denmarks leading role within wind energy, it

is a prerequisite that the industry has easy access to test facilities for prototype

testing close to their R&D departments.

In Denmark you can test any part of a wind turbine. From materials to blades, weld-

ing, drivetrain and large components such as nacelles and last but not least full

scale turbines.

22 CASE: STERILD T EST CENTRE ENSURES SIEMENS WIND POWER A COMPETITIVE OFFSHORE A DVANTAGE


23/32

In October 2012, Siemens Wind Power

installed a 6 MW turbine at sterild Test

Centre in Northern Jutland, Denmark. The

test centre, operated by the Technical

University of Denmark (DTU), is of great

importance to us. The test site allows us to

test turbines on a full scale under changing

climatic conditions, which is a strong driverfor innovation and therefore a large com-

ponent in reducing energy production for

wind farms.

The fast and comprehensive full scale test-

ing possibility at sterild means that the

testing period has ended for SWP-6MW and

it is already being used by the European off-

shore wind market. Innovation is our most

important competitive advantage. There-

fore, a public test facility, like sterild, only

reinforces the reason why we have decided

to carry out our turbine tests in Denmark .

The importance of sterildsterild is currently the only place in the

world where measurements on turbines

up to 250 metres in height can be made.

For this reason, the test centre is ideal for

testing the offshore wind turbines of today

and tomorrow.

The technological improvements from the

tests are already showing. Firstly, they

ensure that our fleet of existing turbines

continue to evolve and that small improve-

ments can be made in order to increase

output. Secondly, an entirely new and

much larger wind turbine is underway: A

10 MW turbine. It is not just an evolution

of the existing turbines, but a leap into

something bigger. This is a turbine that I

believe we will see on the market before

2020 thanks to the accelerated innova-

tion that research and development test-

ing allows for.

The Danish approachDenmark has pioneered the wind industry

for the past four decades. Renewable en-

ergy is deeply integrated into the Danish

conscience and Denmark is known world-

wide for this. Denmark has high education

and qualification levels within wind ener-

gy, which Siemens Wind Power takes ad-vantage of in research and development.

Denmark is also characterised by a political

environment that has a positive attitude

towards renewable energy. The public as-

pect of sterild Test Centre is a good exam-

ple of this. For all of these reasons, it is not

a coincidence that Siemens has chosen to

place and maintain its research and devel-

opment departments in Denmark.

In addition to the test facility of sterild,

we have established our own test centres

in Denmark, investing over DKK 2 bn (EUR

268 m) in state-of-the-art research and

development departments in the cities

of Brande and Aalborg. Combined, these

make up the largest test facilities for wind

turbines and blades in the world.

Altogether, these strategic reasons pro-

vide Siemens Wind Power with the best

test opportunities in order for us to accel-

erate our wind turbine innovation.

STERILD TEST CENTRE

ENSURES SIEMENS WIND POWERA COMPETITIVE OFFSHORE

ADVANTAGE

Siemens Wind Power has just finished testing a 6 MW wind turbine at sterild Test Centre, the

worlds largest and most advanced centre for full scale turbine testing. The Danish test facility

allows Siemens Wind Power to accelerate innovation to reduce energy production costs for

offshore wind farms

Michael Hannibal, CEO Offshore, Siemens Wind Power

The first Siemens turbine at sterild, the

6 MW, is being installed.Photo: Siemens Wind Power A/S

CASE: STERILD T EST CENTRE ENSURES SIEMENS WIND POWER A COMPE TITIVE OFFSHORE ADVANTAGE 23


24/32

Strong forces.Vestas own 20 MW test bench in Aarhus is ready to perform another test. Here, Vestas can simulate a complete life

cycle for key components and systems in order to map potential reliability issues and possible improvements. This significantly reduc-

es risks for customers and increases the speed of product development. Knowledge previously gathered after years in the field can

now be collected over the course of months before a product is even installed for customers. Photo: Vestas Wind Systems A/S

24 CASE: ADVANCED NACELLE TESTING AN INTEGRAL PART OF VESTAS PRODUCT DE VELOPMENT


25/32

All around the year, Vestas is conducting

tests on different components in different

locations around the world. Most of these

tests take place in Denmark, because ad-

vanced test facilities and relevant compe-

tencies are available here. The latest addi-

tion is Lindoe Offshore Renewables Center

(LORC), where Vestas will perform full-scale

testing of nacelles over the coming years.

Comprehensive and advanced testing of

components, systems and products is a

key part of product development in Ves-

tas, where the overall objective is to reduce

the levelised cost of wind energy (by defi-

nition the production cost of each unit of

electricity generated over the lifetime of a

wind farm taking into account a wind farms

development costs, capital investments,

financial costs and lifetime running costs),

shorten the time it takes to bring new prod-

ucts to market and to increase the business

case certainty for the customers.

The test process can roughly be divided into

three steps with good facilities available in

Denmark for every step.

Step 1: Component and

system integration testing

Aarhus, the second-largest city in Den-

mark, provides the setting for Vestas pow-

erful in-house test bench for wind turbines.

Here, the full system, including main com-ponents such as gearbox and generator, is

tested. The test bench can apply massive

power and loads to the drivetrain similar

to the conditions in the field, which allows

us to simulate a complete life cycle over a

short period of time.

Step 2: Complete nacelle testing

LORC adds another element to the tests,

as the complete nacelle, including the hub,

is tested on a 10 MW test bench. It ena-

bles Vestas to test other key components

in the wind turbine and not least their

interaction during realistic conditions. For

example, the full software and hardware

is tested calculating the torque reference

from simulated wind input. The test bench

is close to unique when it comes to the abil-

ity to test the electrical components and

their output to the grid. This is of course of

great interest to Vestas and in the end to

our customers.

Step 3: Field testsFinally, we test in the field to prove that we

can deliver what we have promised our cus-

tomers. A number of sites in Denmark are

dedicated to test purposes, which enables

us to quickly bring a prototype to field test-

ing.

ADVANCED NACELLE TESTING

AN INTEGRAL PART OF VESTASPRODUCT DEVELOPMENTThe worlds largest wind turbine manufacturer, Vestas Wind

Systems, uses state-of-the-art test facilities to reach the

ambitious targets for product development. The newest

addition to the wind turbine test options in Denmark is the

nacelle tester at LORC

Anders Vedel, Executive Vice President & C TO, Vestas Wind Systems A/S

Shortening the time to market. LORC

offers the worlds most realistic indoor full

scale testing of 3-10MW nacelles. A unique

design allows the hub to be included and

the pitch system to remain active during

testing of the nacelles functionalities andinteraction with the grid. The full software

and hardware is tested under extreme

events with a test controller calculating

the torque reference from simulated wind

input.Photo: Vestas Wind Systems A/S

CASE: ADVANCED NACELLE TESTING AN INTEGRAL PART OF VESTAS PRODUCT DE VELOPMENT 25


26/32

Beatrice is an offshore wind project located in Outer Moray Firth,

Scotland, with a potential capacit y of up to 664 MW. The project has

been substantially developed by SSE and Repsol and is progressingtowards Final Investment Decision in 2016. SSE manages the de-

velopment of the project and will be the main operator. Beatrice is

owned by SSE (50%), Repsol (25%), Copenhagen Infrastructure I

(12.5%) and Copenhagen Infrastructure II (12.5%). All shareholders

have seats on the board of the project. Photo: Copenhagen Infrastructure Partners

26 CASE: MAKING OFFSHORE WIND ATTR ACTIVE AND ACCESSIBLE TO INVESTORS


27/32

1

Investment Contractstrike price

Year

Nominal GBP received per MWh produced

Illustrative example: Revenue per MWh for a UK offshorewind project with an Investment Contract

Estimated market price Illustrative average level

Estimated market price Illustrative high and low level

2 3 4 5 6 7 8 9 10 11 1 2 13 14 15 16 17 18 19 20 21 22 23 24 25

For institutional investors, investment in

offshore wind is attractive. With long time

frames, stable returns over several years

and a strong cash flow, offshore wind can

serve as a substitute to certain bond types.

Governments, seeking to achieve CO2reduc-

tions, address future capacity needs and

ensure regional security of supply, supportoffshore wind investments and the projects

are becoming more bankable due to proven

concept and technology. The worlds first

offshore wind farm was Danish and built in

1991. Today, we have more than 5 GW off-

shore wind capacity installed in Europe and

The European Wind Energy Association an-

ticipates a level of around 23 GW by 2020.

However, many institutional investors do

not yet have the required resources and

experience within energy infrastructure

investments. This has led to the formation

of specialised infrastructure funds, suchas Copenhagen Infrastructure Partners

(CIP), which was founded in 2012. To make

offshore wind projects more attractive and

accessible for institutional investors, CIP

applies an industrial approach. The five

partners in CIP have extensive experience

within development, construction and

operations from numerous offshore wind

projects and leverage their industrial back-

ground for access to proprietary deals.

The recent CIP investment in the UK off-

shore wind project Beatrice is a good exam-

ple of how and why the industrial approach

works. CIP and the two shareholders of Be-

atrice, the UK energy company SSE and the

global energy company Repsol, engaged in

a dialogue in early 2014 about the possible

acquisition of a shareholding in Beatrice. In

November 2014, CIP acquired 25% of Be-

atrice from SSE. The acquisition was made

on behalf of the two funds, Copenhagen In-

frastructure I & II, which have commitments

from eight of the largest institutional inves-

tors, primarily pension funds, in Denmark.SSE and Repsol had developed the project

substantially since 2009 and CIP entered

the project at the last stage of develop-

ment. This was late enough for the develop-

ment risks to be significantly reduced: the

Investment Contract was awarded and the

grid connection, main consents and building

permits were obtained. However, it was as

well early enough to allow CIP to participate

in the optimization of risk allocation (e.g.

allocation of risks in the contracts with sup-pliers), concept (e.g. wind farm layout and

technology choice) and bankability (e.g. par-

ticipating in securing bankable Operations &

Maintenance contracts and Power Purchase

Agreements, designing and executing the

project finance strategy). All areas in which

the CIP partners have substantial experi-

ence.

Unlike most infrastructure funds, CIP has a

long investment horizon. This is attractive

for industrial companies looking for long

term partners with whom they can build and

operate the projects and for institutionalinvestors looking for strong cash flows and

stable inflation-linked returns for many

years.

MAKING OFFSHORE WIND

ATTRACTIVE AND ACCESSIBLETO INVESTORSOffshore wind projects are politically andfinancially attractive investments

Beatrice is one of five offshore wind projects in the UK awarded

an Investment Contract by the UK government. The Investment

Contract secures the generator a fixed CPI indexed price per MWh

for a 15-year per iod (green area). After this period, the generator

receives the market price (blue area) which is expected to be low-er and exhibit fluctuations due to seasonal effects and changes in

economic activity. The investment contract thus reduces the power

price risk significantly and produces bond-like cash flows.

The graph is only an illustr ative example of the revenue profile for a

project similar to Beatrice.

With interest rates at a historically low level, investing in

infrastructure such as offshore wind is becoming increasingly

attractive as new investment channels become available

Christina Grumstrup Srensen, Senior Partner, Copenhagen Infrastructure Partners

Stephanie Bendorff Rpcke, Manager, Copenhagen Infrastructure Partners

CASE: MAKING OFFSHORE WIND ATTRACTIVE AND ACCESSIBLE TO INVESTORS 27


28/32

A green transition.China stands as an example of countries wish-

ing to transform its energy sector into a greener one. The countrysextensive need for energy has seen a large fraction of renewable

energy projects being built in recent years. Denmarks extensive

knowledge within renewable energy technologies, in particular

within wind, creates great knowledge-sharing opportunities be-

tween the two countries.

Export of the Danish energy modelThe Danish political parties have approved an initiative to

promote export of Danish energy solutions in the period

from 2014 to 2015. The countries of focus for the export

initiative are UK, Germany and China. The aim is to facilitate

increased collaboration between Danish and foreign au-

thorities to pave the way for business cooperation, export

opportunities and foreign investments in Denmark.

Photo: Keenpress/Wind Power Works

28 CASE: SUSTAINABLE WIND EXPORT BUSINESS


29/32

EXPORT SHARE 2005 2014

Danmar k 8.4 12.0

Finland 6.6 9.1

Italien 7.8 9.1

Tyskland 7.5 8.7

strig 7.4 8.3

Sverige 6.6 7.9

EU15 5.8 6.6

Frankrig 6.1 6.2

Storbritannien 5.2 5.7

Spanien 4.3 5.4

Portugal 4.5 5.4

Luxembour g 4.9 4.9Grkenlan d 5.2 3.4

Belgien 3.3 3.2

Holland 3.0 3.2

Irland 2.0 1.8

Green energy technologies are in high de-

mand and Denmark is a living example that

economic growth and CO2reductions can be

achieved simultaneously. Denmark has al-

ready established bilateral cooperation with

a number of countries, including China, Mex-

ico, South Africa and Vietnam to catalyse the

energy transition in these countries. The

focus is on energy policy and regulatory is-

sues - such as cost effective framework con-

ditions for wind power expansions.

China has entered the energy transition

fast track with a clear focus on e.g. wind

performance and quality, aiming to learn

from Denmarks technology development

practice and regulatory experience. The co-

operation makes for real cuts in global CO2

emissions and paves the way for increased

bilateral trading in the energy area.

Danish export statistics show that green

energy technology equals good business.

Energy technology exports have long ac-

counted for a large share of Denmarks

export of goods compared to other EU

countries. In 2014, the export of energy

technologies amounted to 12% of exported

goods total. Of this, green technologies ac-

counted for more than half.

Wind export

China exemplifies countries that wish to

green their energy production. With an ex-

tensive thirst for more energy, renewables

are making up a large fraction of newly built

energy projects in China. Based on a decade

of mutually beneficial cooperation Denmarkhas recently initiated a pilot project to sup-

port Chinas energy transition.

Out of the total export of goods to China

in 2014, export of energy technologies

amounted to 12.2% with a green energy

technology proportion of 29.5%. Of this,

the majority was wind.

Government to Government

cooperation

In the implementation of the current bi-

lateral project, the Danish Energy Agency

has joined forces with the Trade Council at

the Royal Danish Embassy in Beijing and

Danish suppliers to the wind industry inChina. The project idea is based on an inte-

grated approach, where deep regulatory

cooperation makes for sustained business

opportunities. The Chinese authorities have

welcomed this approach, appreciating the

Danish experience in crafting legislation,

regulation and modelling for greening the

energy sector.

Changing the focus

China has invested in onshore wind energy

amounting to approx. 100 GW. Some farms

in this vast portfolio are not performing up

to standards and the Chinese government

is dedicated to make the most of its in-

vestment. In the pilot project, Denmark will

share its knowledge on how Chinese wind

farms can increase performance using Dan-

ish standards and technology.

The approach is a focus on Levelized Cost of

Energy (LCOE). LCOE is the production cost

of each unit of electricity generated overthe life time of a wind farm taking into ac-

count a wind farms development cost, cap-

ital investment, financial costs, and lifetime

running costs.

The way we think of wind is changing

from a focus on investment costs only to

a broader focus that includes operation

and maintenance costs, too. China has his-

torically approached wind projects with a

relatively short-term investment perspec-

tive. Through the Danish LCOE approach,

Chinese wind farms can achieve a more ro-

bust business case and greater return on

investments.

SUSTAINABLE WIND

EXPORT BUSINESSIndustry hand in hand with intergovernmentalcooperation on the green agenda

Energy technologies share of the

export of goods among the EU15countries

In comparison to other EU countries, export

of energy technologies has long accounted

for a large share of goods exported from

Denmark.

Wind energy covered more than 39% of the Danish electricity consumption in 2014. This makes

Denmark a world champion in wind generated electricity and a market leader in the green energy

transition. Denmark has recently created a new initiative to extend our successful government to

government cooperation in this field

Morten Bk, Director General, Danish Energy Agency

CASE: SUSTAINABLE WIND EXPORT BUSINESS 29


30/32

SELECTED EXAMPLES OF DANISH FOOTPRINTS IN OFFSHORE WIND

Middelgrunden 40MW

Denmark 2001

Danish deliveries:

Developer and operator

Wind turbines

Wind turbine installation

Substructure design

Design of substation foundation

Substructure main constructor

Substructure installation

Foundations and transition pieces

Logistics

Project finance

Kentish Flats 90 MW

United Kingdom 2005

Danish deliveries:

Developer

Wind turbines

Wind turbine installationSubstructure design


J-tube installation

Grouting

Logistics

London Array 630 MW

United Kingdom 2013Danish deliveries:


Wind turbines


Substructure installation


Substructure design

Design of substation foundation

Monopiles and transition piece

Grouting

Logistics

Monitoring of wind, waves and currents

Project finance

Horns Rev 2 209 MW

Denmark 2009Danish deliveries:

Developer

Accommodation platform

Wind turbines


Foundations

Foundation installationFoundation design

Operator

Substation

Substation installation

Project finance

30 CASE: SELECTED EXAMPLES OF DANISH FOOTPRINTS IN OFFSHORE WIND


31/32

For nearly 40 years, companies in the Dan-

ish wind industry have developed and built

wind turbines, installed them and integrat-

ed wind into the energy system. Today,

Denmark is home to some of the worlds

leading companies, and more than 500

companies, working in all areas of the wind

industry, are located in Denmark.

Every link in the supply chain is represent-

ed in Denmark. Hundreds of companies are

involved in wind turbine production, sub-

structures, logistics, investment, develop-

ment, installation and service. They form

a close-knit network with unique compe-

tences.

A strong supplier hub now and in the

futureCompetitive parameters and supplier re-

quirements have developed by leaps and

bounds in the last decade. While focus re-

mains on the innovative capabilities of the

suppliers, there has also been increasing

focus on other aspects, such as quality

management, time to market and servicing.

The Danish supply chain has adapted to the

changing landscape and has remained com-

petitive in the global marketplace. When it

comes to lowering the cost of wind energy,

Danish suppliers have a strong hand.

The current evolution of the supply chain

structure is evidence of maturity of the

Danish supplier hub. Drawing inspirationfrom both the automotive and aerospace

industry, industrialization of the wind in-

dustry is moving forward, and it is becom-

ing evident that the Danish supply chain can

set the standards for structural changes

and new business models, such as system

solutions.

Forging alliances Danish style

Wind turbine manufactures today require

systems and solutions from the supply

chain more than individual components

from a range of companies.

For the big wind turbine producers, con-

tracting a series of expert companies indi-vidually to each provide one part of a total

system is time consuming and costly to

manage compared with managing a single

interface with an allied group. Denmark,

with its myriad of small companies with

specialist wind industry knowledge, often

run by people with years of shared industry

experience, is ideally positioned to respond

to the new trend.

Danish suppliers have been good at organ-

ising themselves in groups and co-oper-

ative constellations to supply a complete

solution. Suppliers who before delivered

directly to the big producers now deliver

to other sub-suppliers who take care of the

direct relation with the wind turbine pro-

ducer.

Moving towards more integrated sys-

tem solutions reinforces the need for the

wind industry to consolidate and cooper-

ate. Strong ties between the wind turbine

manufacturers and the so-called system

suppliers are in the best interest of all par-

ties. These suppliers achieve the status of

development partners for the next genera-tion wind turbines another advancement

which serves to underline the strength of

the Danish supplier hub.

DENMARK THE SUPPLIER HUBThe Danish supply chain and production capabilities form a unique

wind energy supplier hub. Strong and extensive collaboration, commit-ment to innovation and years of experience form the basis of a strongand progressive hub that is able to compete internationally

Anholt 400 MW

Denmark 2013

Danish deliveries:


Wind turbines


Substation installation

Substation design

Substation manufacturer

Export cables

Export cable installation


Substructure design

Monopiles and transition piece

Monopiles and transition piece installation

Export cable manufacturing

Export cable installationGrouting

Logistics

Geophysical investigations

Environmental Impact Assessment

Project finance

CASE: DENMARK THE SUPPLIER HUB 31


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Learn more about Danish solutions in wind energy,

find more cases from around the world and connectwith Danish expertise at:

stateofgreen.com/wind-energy

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