The Energy Transition to Wind Power: a Comparative Analysis of the Wind Power Development in Denmark and China
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The Energy Transition to Wind Power: A Comparative Analysis of the Wind Power Development in Denmark and China MSc Thesis Political Science: International Relations Research Project: The Political Economy of Energy University of Amsterdam – Graduate School of Social Sciences Amsterdam – June 22nd, 2018 Author: Supervisor and second reader: Suzanne Nieuwveld Dhr. dr. M.P. Amineh 11251298 Dhr. dr. R.J. Pistorius 2 3 Abstract This master thesis discusses what factors explain why Denmark and China have had a large- scale development of wind power. The central objective is to explain what factors account for the success of the wind power development in Denmark and China. It does so, by analysing the current energy situations, the state-society(-market) complexes, the (renewable) energy policies and the wind power outlooks and challenges of Denmark and China. In this respect, this research finds that Denmark’s large-scale wind power development was instigated by the main driver of Denmark to secure their energy supply, as a response to the oil crisis in 1973. However, the last few decades it appears that Denmark has been striving to gain a global leadership position in the wind power industry. In addition, climate awareness has come higher up on the agenda. Overall, the factors that influenced the large-scale development of wind power in Denmark have been mixed with the main driver varying over time. This is the same case for China. Nevertheless, China’s main driver from the beginning has been the stimulation of economic growth. By developing their wind power industry on a large-scale the Chinese government ensured that the costs of the wind power development decreased rapidly. However, the use of cheap energy, derived from coal plants, has caused severe health and environmental problems in China. This caused China to become aware of the climate and environmental issues and might be one of the reasons for the substantial investments in clean energy. In addition, this research finds that if China wants to keep up with the global leaders in the wind power industry, they need to step up their game with regard to technology in the wind power field. Key words: Renewable energy transition, Energy security, Wind power development, Denmark and China 4 5 Table of content Acknowledgements _________________________________________________________________________________ 9 Maps __________________________________________________________________________________________________ 11 List of figures _______________________________________________________________________________________ 13 List of abbreviations _______________________________________________________________________________ 15 Chapter 1: Research Design ______________________________________________________________________ 17 1.1 Introduction ______________________________________________________________________________________________ 17 1.2 Objectives________________________________________________________________________________________________ 18 1.3 Social and scientific relevance __________________________________________________________________________ 18 1.4 Research question _______________________________________________________________________________________ 19 1.5 Literature review ________________________________________________________________________________________ 20 1.5 Delineation of the Research _____________________________________________________________________________ 23 1.6 Theoretical framework __________________________________________________________________________________ 23 1.6.1 Actors _______________________________________________________________________________________________ 27 1.7 Brief argumentation and hypotheses ____________________________________________________________________ 28 1.8 Research method ________________________________________________________________________________________ 29 1.9 Organization of the thesis _______________________________________________________________________________ 31 Chapter 2: The current energy situation of Denmark and China ___________________________ 33 2.1 Introduction ______________________________________________________________________________________________ 33 2.2 Energy profile: global ___________________________________________________________________________________ 33 2.3 Energy profile: Denmark ________________________________________________________________________________ 36 2.3.1 Energy production __________________________________________________________________________________ 36 2.3.2 Energy consumption _______________________________________________________________________________ 37 2.3.3 Energy reserves_____________________________________________________________________________________ 37 2.3.4 Energy imports & exports __________________________________________________________________________ 38 2.3.5 Renewable energy development ___________________________________________________________________ 39 2.3.6 Wind power ________________________________________________________________________________________ 40 2.4 Energy profile: China ____________________________________________________________________________________ 40 2.4.1 Energy production __________________________________________________________________________________ 40 2.4.2 Energy consumption _______________________________________________________________________________ 41 2.4.3 Energy reserves_____________________________________________________________________________________ 41 2.4.4 Energy imports & exports __________________________________________________________________________ 43 2.4.5 Renewable energy development ___________________________________________________________________ 43 2.4.6 Wind power ________________________________________________________________________________________ 45 2.5 Resource Scarcity Model: global ________________________________________________________________________ 45 2.6 Resource Scarcity Model: Denmark ____________________________________________________________________ 46 6 2.7 Resource Scarcity Model: China _______________________________________________________________________ 46 2.8 Conclusion _______________________________________________________________________________________________ 46 Chapter 3: The political economy of energy in Denmark and China _______________________ 49 3.1 Introduction ______________________________________________________________________________________________ 49 3.2 Political economy________________________________________________________________________________________ 49 3.3 The political economy of energy of Denmark __________________________________________________________ 51 3.3.1 Governmental actors _______________________________________________________________________________ 52 3.3.2 Business actors _____________________________________________________________________________________ 53 3.3.3 Green movements __________________________________________________________________________________ 55 3.4 The political economy of energy of China ______________________________________________________________ 56 3.4.1 Governmental actors _______________________________________________________________________________ 58 3.4.2 Business actors _____________________________________________________________________________________ 59 3.4.3 Green movements __________________________________________________________________________________ 60 3.5 Conclusion _______________________________________________________________________________________________ 61 Chapter 4: Energy policy in Denmark and China ______________________________________________ 63 4.1 Introduction ______________________________________________________________________________________________ 63 4.2 Energy Policy in Denmark ______________________________________________________________________________ 63 4.2.1 History ______________________________________________________________________________________________ 63 4.2.2 Energy policy _______________________________________________________________________________________ 65 4.3 Energy policy in China __________________________________________________________________________________ 67 4.3.1 History ______________________________________________________________________________________________ 67 4.3.2 Energy policy _______________________________________________________________________________________ 68 4.4 Conclusion _______________________________________________________________________________________________ 70 Chapter 5: Wind power challenges and outlook ______________________________________________ 73 5.1 Introduction ______________________________________________________________________________________________ 73 5.1 Denmark’s wind power outlook _________________________________________________________________________ 73 5.2 Challenges: Denmark ____________________________________________________________________________________ 76 5.3 China’s wind power outlook ____________________________________________________________________________ 77 5.4 Challenges: China _______________________________________________________________________________________ 79 5.5 Conclusion _______________________________________________________________________________________________ 80 Chapter 6: Conclusion _____________________________________________________________________________ 83 6.1 Conclusions ______________________________________________________________________________________________