Attached.

Running head: WIND ENERGY IN DENMARK

Wind Energy in Denmark
Institutional Affiliation
Date

1

WIND ENERGY IN DENMARK

2

Introduction
Denmark has been a leading commercial producer of wind power since the 1970s, and in
the current world market, a substantial share of the wind turbines is produced by Danish
companies such as Siemens wind power and Vestals. There are also various component suppliers
based in Demark. Hence the country is a pioneer in wind power development. The production of
wind power in Denmark is an estimated average of 42.1 percent of the total consumption of
electricity since 2015. There was a remarkable increase in wind power production from 33
percent in 2013 to 39 percent in 2014. The government of Denmark has adopted several
strategies to increase the amount of wind power and renewable energy production from 50
percent by 2020 to 84 percent in 2035. Regarding energy security, the country is ranked sixth in
the world, thanks to the massive wind power production. Denmark has a moderately reserved
wind speed ranging between 4.9 to 5.5 m/s which is estimated at 10 meters in height
(Munksgaard & Morthorst, 2008). The western part of Denmark is rich in onshore wind
resources, as well as the island in the eastern part which has coastlines facing the west or south.
The country is therefore rich in offshore wind resources, and larger parts of the seaside have a
shallow water depth ranging from 5-15 Meters which is much feasible for siting. The sites,
therefore, provide higher speeds of wind, ranging between 8-9 meters per second at the height of
50 meters.
Changes to The System
Despite not experiencing major problems, there is a temporary problem which results
from a large wind block connection from the wind farms within the offshore areas to a single
area on the transmission network’s weak point. Transmission lines connect Denmark to other
European nations at the level of electricity interconnection. The country has also retained the
traditional power plants hence it is not necessary to install extra pick-load plants to stabilize its
wind power. Instead, the country imports extra power from the neighboring countries when
needed. The wind turbine industry of Denmark is the largest in the world. In 2003 for instance,
about 90 percent of the national production exported was comprised of 38 percent from Danish
companies. The wind turbine industry of Denmark employed over 20,000 people, and the total
turnover was over 3 billion euros, during the same year. The industry has expanded, with more
products being manufactured for export. The Danish wind power is, therefore, no doubt a
significant renewable energy production company in the world. Wind power industry
development in Denmark is characterized by close collaboration government-financed research
and key area industries including certification, standard preparation, testing, research, and
development. The electricity costs of Denmark including the cleaner energy cost and PSO are
average in the European Union although taxes are a major constraint as they increase prices to
become the highest in Europe. It is difficult to change the tax composition to achieve a greener
mix because taxes are a major source of income for the state. As per reports from government
officials, most of the taxes are not based on environmental concerns arising from the wind
energy generation but are based on the PSO funds for cleaner energy which is paid by all
consumers of electricity to the clean energy producers (Lund & Mathiesen, 2009). These tolls are
therefore not available for consumption by the government. The actual amount of PSO
(consumer paid incentives) paid to newly established wind energy turbines is subject to the year
of commission but is about 25 ore for every kWh produced, with a restriction in the number of
operational hours. If the total price is more than 58 ore per kwh, the support is discounted. The

3

WIND ENERGY IN DENMARK

PSO tax is also applicable to other renewable energy sources including solar and biomass.
However, the biggest amount of PSO goes to wind energy, with 3.2 billion DKK coming from
wind energy in 2013, out of the total 5.8 billion DKK in that year. This high taxation of wind
energy production is a real concern and setback to the industry. The power cost in 2015 was only
32 percent of the total price, while 9 percent was PSO, and VAT and tolls occupied the
remaining 59 percent. To some degree, however, wind power to some extent displaces gas, coal,
and oil with a running cost reduction for fossil fuels. Wind energy therefore slightly reduces
price variability. The graph below shows the total capacity and wind turbines between 1980 and
2004.

d
Environmental Issues
The Danish offshore wind brings about some environmental issues which emanate from
the wind power generation. These impacts are very much felt in the Danish northern sea, and
most have not fully addressed. The massive win power production in Denmark impacts on the
marine environment by creating a potential for habit enhancement. The wind power production
introduces some hard substructures into the marine environment, which develop from the
development of wind farm and end up functioning as artificial reefs (Möller, 2006). A
progression in this ecological condition after the emersion of such substructures can result in
increased diversity especially in marine species. There is a significant increase in fish species in
most offshore wind farms is connected to the increase in availability and production of species of
benthic as a result of the artificial reef infrastructure. The wind power farms also contribute to
high biological productivity due to lack of trawling activities in the nearby areas. From this
perspective, therefore, the establishment of wind power farms can impact on the marine
environment by enhancing increased marine productivity. Although this habit enhancement has a
general negligence on the species population, it may be significant for the protection and
productive habit of some species.
Another significan...