DanishDanish energyenergy policypolicy andand MiddelgrundenMiddelgrunden OffOff--shoreshore WindWind FarmFarm

Jens H. M. Larsen, M.Sc. Copenhagen Environment and Energy Office Energysavings Local information and implementation DanishDanish NetworkNetwork ofof EnergycentersEnergycenters Energyservice Energyservice Offices: 13 People: 50 DanishDanish EnergyEnergy PolicyPolicy z Danish olie in 1972 and oliecrisis in 1973 z Energyplans in year 76, 81, 90, z Year 1996 (Energy 21) z Green majority in parliment 1980-2000 z New libral goverment in 2001 DanishDanish EnergyEnergy PolicyPolicy -- updateupdate z Liberal Energy Market z Electricity Saving Fund, labelling ect. z Energy savings in buildings, new regulation z 2 % energy saving pr. year z 2 new offshore windfarms z Retrofit of 350 MW new wind on land NewNew DanishDanish WindWind PolicyPolicy

No new capacity 2003-2006 Low expectations for new capacity after 2007 Market + Added price (Max 0.049 euro/ kWh) From Centralized to Decentralized CHP DK annual consumption 32 TWh

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

Two autonomy systems. Connection to Norway, Germany and Sweden

Annual consumption 32 TWh COCO2--EmissionEmission andand EconomicEconomic GrowthGrowth

130

120 G D P f ixed pr ices 110 C O 2- em issi ons 100 G r oss ener gy consum pt io n 90

80 1988 '90 '92 '94 '96 '98 '00 '02

Explanatory factors: 1) Renewable energy, 2) Energy savings, 3) Combined Heat Power EmissionEmission ofof danishdanish greenhousegreenhouse gasgas Production Cost at Danish on-shore Plants

10 9 8 h

W 7 k . 6 Actual 5 nt pr e 4 MG offshore Estimated c * o

r 3 u

E 2 1 0 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 HistoryHistory ofof DanishDanish WindpowerWindpower HistoryHistory ofof DanishDanish WindpowerWindpower z Gedser møllen, 200 kW z Installed 1957 z shut down, 1967 z Testrun in 1977 was financed by US government HistoryHistory ofof DanishDanish WindpowerWindpower z Oil crisis 1979 z First modern turbine from 1982 z 15 - 45 kW for private household z Privately build z Friend – to - friend HistoryHistory ofof DanishDanish WindpowerWindpower

Ready for the big boom in USA 1985 - 88

Ca. 50 % off all wind turbines in the world is made in DK

20.8%20.8% ofof electricityelectricity inin DenmarkDenmark comescomes fromfrom WindWind inin 20042004 WhyWhy diddid wewe havehave thisthis successsuccess ??

z 81% of Danish wind energy projects are local and community-based z We had a policy which supported this development z Feed-in tarif system z Grid connection law Owne rshi p in D enm ark Year 2002: 3000 M W , 5000 t urbines Utility Others turbines 1% 18%

Cooper ative turbines Single 23% per son 58%

Owne rshi p f or w indt urbines in De nmark

Private/industry (singel turbines ) Coop erative Ut ility MW 400 Year 2005: 3000 M W 5344 t urbines 350 300 250 200 150 100 50 0 90

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

980- 1 Offshore windfarms in Denmark 2005

Bu ild Loc at ion P ow er in y ear 1. V indeby 5 M W 1991 2. Tunø K nob 5 M W 1995 3. M iddel gr und 40 M W 2001 4. H orns R ev 160 M W 2002 5. S am s ø 22 M W 2002 6. R øds and 160 M W 2003

AA beautifulbeautiful viewview

WindWind turbineturbine CoCo--operativeoperative z Big scale wind energy for the city z Local placement z Local dialog z Local ownership z Involve of people in process z Example of Agenda 21 and cityecology HistoryHistory ofof cooperativescooperatives z N.F.S. Grundtvig, 1783 z Theologian, author and poet z Everyone can and must make a difference z Change his conditions of life z Country high schools z Farmers education z DK agriculture and industry organzed by coops WindWind turbineturbine CoCo--operativeoperative z 8527 members private, organizations, companies z 40,500 shares InvolvementInvolvement ofof 85008500 peoplepeople 500500 membersmembers visitedvisited theirtheir turbineturbine onon openopen--househouse dayday inin JuneJune 20052005 ProcesProces DebateDebate DebateDebate –– beforebefore BeforeBefore

DebateDebate DebateDebate GreenGreen landmarklandmark forfor CopenhagenCopenhagen z Said by the: Danish Minister of Environment, Conni Hedegaard, member of danish Conservatives

DanishDanish opinionsopinions aboutabout windpowerwindpower

z 70-85% of people in Denmark support more windpower in Denmark (from 1992-2006) z People are pleased with existing turbines and the positive attitude is highest among those who can see the turbines every day. z Positive attitude is also highest among those who can see the offshore turbines every day. z Complaints from less than 2% of all turbines (mostly old noisy turbines, not allowed today) DanishDanish opinionopinion poll,poll, ACN,ACN, 2006,2006, WildWild aboutabout windwind z Are you favorable to wind power?

1% 3%

Yes No Don't know

96% DanishDanish opinionopinion poll,poll, ACN,ACN, 2006,2006, WildWild aboutabout windwind

z Should Denmark continuously erect new wind turbines, so that an increasing share of the electricity production is covered by wind power?

6% 3%

Yes

No

Don't know

91% DanishDanish opinionopinion poll,poll, ACN,ACN, 2006,2006, WildWild aboutabout windwind

z We should erect more wind turbines, but not in my local area ?

13% 16%

Completely Agree/Agree Disagree/Completely disagree Don't know

71% DanishDanish opinionopinion poll,poll, ACN,ACN, 2006,2006, WildWild aboutabout windwind

z Wind turbines in the landscape is a positive symbol of Denmark?

9%

Completely 14% Agree/Agree

Disagree/Complet ely disagree

Don't know

77% DanishDanish opinionopinion poll,poll, ACN,ACN, 2006,2006, WildWild aboutabout windwind

z In general, wind turbines integrates well into the Danish landscape?

12% Completely Agree/Agree

24% Disagree/Complet ely disagree

64% Don't know OffshoreOffshore opinionopinion pollpoll 2006,2006, 1400 persons

z People with direct views for turbines at Horns Reef and Nysted are more positive than people in general, and more positve towards extension of the farms z Nysted, 9-10 km from coast, pay 1200 DDK to go 50 km from coast. z People in general; 900 DDK to go 50 km from coast. z , 14-20 km from coast, pay 600 DDK to go 50 km from coast. TouristTourist TouristTourist opinionopinion pollpoll aboutabout ,Middelgrunden, 20062006 z Are you favorable to wind power?

3% 3%

Yes No Neutrale

94% TouristTourist opinionopinion pollpoll aboutabout Middelgrunden,Middelgrunden, 20062006 z What is your impression of the turbines outside Copenhagen harbour?

22%

Positive 7% Negative

Neutrale 71% DanishDanish opinionopinion pollpoll byby Sonar,Sonar, 20012001 WhatWhat dodo youyou thinkthink aboutabout windwind powerpower inin DenmarkDenmark ??

18% Enough - stop now Stop - too 7% many already Don´t know 7%

68% Yes - more 0,40 0,34 DebateDebate0,35 0,30

0,25

h 0,21 0,20 /kW

kr 0,15 0,13

0,10 0,08

0,05

0,00 Paid price Market Saved Real value for CO2 price for health cost CO2 Source: Danish Environment Ministry, ExternE DebateDebate

Source: Prof. Mikael Skou Andersen Danish Environment Institut EnvironmentalEnvironmental ImpactImpact AssesmentAssesment EIAEIA z Visual impact z Risk of leaking: debris and heavy metals contamination from the former dumpsite z Noise propagation z Influence on the free flow of water i Oresund z Risk of collision with vessels z Impact on flora and fauna z Fishing z Risk of shipwrecks and findings of archaeological interest BenefitsBenefits forfor thethe EnvironmentEnvironment z 89.000 MWh per. Year z 3% of electricity in Copenhagen z Gives clean air : z 261 tons SO2 z 234 tons NO2 z 76500 tons CO2 z 4950 tons cinders and ash VisualVisual impactimpact 11 z Several configurations were testet using computer image z Visiual background for the Littel Mermaid z Opposition to all configuations, except straight-line z A straight-line type meant fewer turbines than could be supported bv the area VisualVisual impactimpact 22 VisualVisual impactimpact 33 NoiseNoise propagationpropagation z Regulation: Noise levels below 40-45 dB at nearest neighbour z Fact: You can´t hear after 500 m. ImpactImpact onon thethe freefree flowflow ofof waterwater ii OresundOresund z The Baltic Sea is refreshed by water from the Danish straits z Reduced flow by 0,0012% z Compensation treament was not justified RiskRisk ofof collisioncollision withwith vesselsvessels z Result; Reduced risk of oil spill. z Oresund is a busy seaways, 20.000 ships a year. z Simulations have shown 8% risk of one collision to turbine pr. year. z But reduced ground collison 120% to 40% a year because the low water will become visible ImpactImpact onon floraflora andand faunafauna z No negative influence after 3 years z Vegetation was to be controlled prior to construction, three months after, and on yeare after z Tree months later the sea bed had more or less recovered, and the faundations were covered with seaweed z Conclusion: The faundations served as minireefs FineFine recoveryrecovery ofof eelgrasseelgrass afterafter thethe constructionconstruction

BirdsBirds atat MiddelgrundenMiddelgrunden z No effect on birds z Or positive effect z Birds often collide with high voltage lines, masts, poles, and windows in buildings. They are also killed by cars and shot. z Birds are seldom bothered by wind turbines, however.

FishingFishing inin thethe areaarea z Compensation for ”no fishing” during the construction z Fishing allowed around the cabels z Better fishing place becaus of the faundations ”minireefs”

RiskRisk ofof shipwrecksshipwrecks z Many shipwrecks in the area • No archaeological sites was found • Could have delayed the construchen with 1 year ShadowShadow z Distance to housing min. 500 m z No problem at Middelgrunden BonusBonus 2MW2MW z Tower 64 m z Top 102 m z Rotor Ø 76 m, equal to the wings of a Boeing 747 z 18 RPM/12 RPM FundationFundation z 1800 tons z Concrete z Gravity

WindspeedWindspeed toto powerpower ratioratio TowerTower z 8 levels in the tower z Level 1: communication z Level 2 : shiftgear z Level 3 : transformer z Level 4 : controle system z Top and bottom have a dehumidifying plant GridGrid connectionconnection -- seacabelseacabel z Twin 30 kW sea cable are drawn to power plants on the coast z Local connection from turbine to turbine z Turbine No 10 servs as cable hub for all cables TheThe costcost ofof thethe windwind farmfarm

EUR (mill) Wind turbines 26.68 Fundations 12.94 Grid connection, (from land to farm) PSO, not included Grid connection, off-shore 4.51 Design, advice and planning 2.98 Wind-turbine co-operative 0.80 Other costs 0.64 Total 48.55 (Middelgrundens Vindmoellelaug I/S, final account 2003) KeyKey figuresfigures (40(40 MW)MW)

Investment 47,700,000 Euro Investment/kW 1,193 Euro/kW Yearly production 100,000,000 kWh Calculation * Calculation rate = 5% * Lifetime = 25 years * Service = 0.01 Euro/kWh Calculated production price 0.044 Euro/kWh EconomyEconomy forfor shareholdershareholder

Sales price of electricity

Year Fixed Added price for renew. energy 0-6 0.044 euro/kWh 0.036 euro/kWh 6-10 0.044 euro/ kWh 0.014-0.036 euro/kWh 10-25 Market price Green label certificate to be traded 10-25 Max 0.049 euro/ kWh (New decision in 2002) EconomyEconomy forfor shareholdershareholder (6(6 years)years)

1. Share = 1000 kWh/year, Price of share = 570 Euro Selling price of electricity 44 Euro Added price 36 Euro Income/year 80 Euro Maintenance cost -10 Euro Net income/year 70 Euro

Simple pay back time 8 years

Annual depreciation 5% Rate after depreciation 7.5%

M idde lgrunde ns Wind C o-ope rative, pr oduc tion 2005 Production Budget, act ual windenergy in Denmark Budge t, no rmal winde nergy in Denm ark 8.000 7.000 6.000 5.000 h 4.000 MW 3.000 2.000 1.000 0

y y h il y y t r r r r r r ne s e er e a a rc Ma u ul u b be b b u ru a Ap J J g m to M e c em b Au t v cem Jan Fe O e Sep No D 2002 2003 2004 2005 Turbine avalibility 98.7 % 98.1% 98,7% 98,3% Total avalibility incl. grid 96.4 % 95.9% 97.2%

Windfarm avalibility

Møllernes rådighed Total rådighed ink l, net

100,0% 95,0% 90,0% 85,0% 80,0% 75,0% 2001 2002 2003 2004 2005 År LessonsLessons learnedlearned z Long planning proces (starts in 1993) z Conflicts (NIMB, fishing, historic landscape, utility. policy) z Myth and facts z New liberalised electricity law z No single authority and no planning procedures z No regulation on private off-shore z Organization of 8500 members (public awareness) z Public dialog important (public awareness) z Visual impact (from 27 to 20 turbines) z Co-operation important ( co-operative, municipality and utility) z Policy (parliament, local parliament,commitment of mayor) RecommendationsRecommendations z People must be involved in relevant part of process z Problems with acceptance can be avoided z Contact for interest groups and authorities in early stage z Dissemination of appropriate information in right time z Many reservations were based on the fear of negative impact z We took relevant and critical reaction into account by changing the design of the windfarm WhyWhy privateprivate andand locallocal turbinesturbines ?? z More actors in the market gives you more turbines ! z Local and private took the initiative for 81% of all turbines in Denmark z Local people create local dialogue and acceptance and prevent the NIMBY effect z Local ownership raises public awareness z Local ownership solves problems and conflicts z Private investment promotes cheaper and better technology WhyWhy privateprivate andand locallocal turbinesturbines ?? z Local production saves 10 % energy (less transmission loss) z Local production demands less transmission lines z Local production makes sustainable development understandable z Gives people opportunity to act for sustainable development z Local turbines give power to democracy and less power to the market z Local turbines give price stability on electricity market ConclusionConclusion z Feed-in tarif, grid connection law, and local investment has formed the basis for wind power success in Denmark z Middelgrunden windfarm showed that offshore can be done for low cost and with no enviromental problems z Demonstration value was and is big z Local demonstration projects is still very important ! z Now it is a green landmark for Copenhagen and local people are proud of Middelgrunden TheThe 20%20% windscenariowindscenario forfor USAUSA z Denmark have 20% wind – can you do the same? z To achieve 20 % wind energy you need 250-340.000 MW. z You need 15.000 MW/y for 20 years – or 20 times the “Cape Cod” project each year for 20 years. z So you really have to do something – time is a factor – and you´ll have to start now! z You need examples of how you can do it (policy, technology, economy, democracy, involvement) z If you save 50% you “only” need 50% wind energy to achieve the same wind penetration z We have done it in Denmark today – you can do it if you want! RecommendationsRecommendations forfor USUS contextcontext z Wind is the cheap and clean – push for local projects ! z 20 % windenergy is achieved in Denmark – you can do the same z Danes are positive for more wind – hope US will do the same z Off-shore wind is a realistic options, especially close to loadcenter MoreMore atat www.middelgrunden.dkwww.middelgrunden.dk ThankThank youyou forfor youryour attentionattention !!