Energy in Denmark a framework for renewable energy Lars Georg Jensen Chief Adviser, Energy Systems, Danish Energy Agency Dublin, RE Summit 2016 Page 1
Danish Energy Agency Established in 1976 Agency under the Ministry of Energy, Utilities and Climate Responsibilities: ENERGY EFFICIENCY Energy production and supply & economic GLOBAL COOPERATION ENERGY RESOURCES regulation of water and waste sector Energy consumption Energy economic and TELECOMS Danish Energy Agency ENERGY SUPPLY & REGULATION OF WATER AND WASTE scenario analysis ENERGY SYSTEMS Telecoms Page 2
Denmark 43 years ago Page 3
Today: Green highlights Energy consumption per GDPunit is lower than in any other EU-country. The world s highest share of new renewables (non-hydro) in electricity generation 56 % in 2015. World leader in advanced energy technologies - district heating and CHP, wind turbines, biomass plants, energy saving technologies 10 billion Euro export of energy technologies (12% of goods exports), app. 60% green tech). Page 4
Gross Energy Consumption 1975-2015 From oil to a mix of fuels PJ Climate adjusted Page 5
Green Growth Track Record - doing more with less 150 140 130 120 110 100 90 80 70 60 GDP - fixed prices +41% Gross Energy Consumption GHG emissions '90 '95 '00 '05 '10 '14-8 % -33 % Page 6
Focus and Initiatives over time Political focus 1970 s Security of supply Independency from Middle East oil Energy savings 1980 s Combined heat and power Natural gas Feed-In-Tariffs Energy taxation 1990 s Decentralized combined heat and power CO2-reductions 2000 s Liberalization Efficiency Renewable Energy deployment 2010 s Independency from fossil fuels Integration of large amounts of RE Electrification Efficiency of supply monopolies Events and Initiatives Oil crises Coal replaces oil in power prod. First national energy plan National Heat Plan Natural gas exploration in North Sea and infrastructure No to nuclear power No to new coal power plants Energy Plan: Energy 2000 CO2-taxes, roll out of decentr GHP EU internal market Unbundling FIT s for RE Commission on CC Policy Energy Agreement 2012 Tendering models for RE EU Energy Union Danish Energy Agency New energy plan December to 2030? 9, 2016 Page 7
A well hidden secret: From Centralized to Decentralized CHP Centralized production in the mid 80 s Legend: Decentralized CHP Centralized CHP Wind mill park Decentralized production of today
It s about Policy Page 9
Key Elements of Danish Energy Policy over time Cost-effective subsidy schemes and consumptiondriven taxes on fossil fuels A stable framework with flexibility Dialogue with sector stakeholders Long term energy strategies and agreements Page 10
The current Energy Agreement - 2020 targets and means Renewable energy in production processes Biomass for heating Grid and distribution companies obliged to reduce consumption Offshore wind power 1400 MW Total wind power 6.500 MW OBJECTIVES: Increased share of renewable energy Reduced energy consumption and GHG emissions Additional minor initiatives Page 11
The EU Regionalization of the Energy Policy Significant economic benefits derived from greater integration of markets across boarders* Increased regional cooperation to come The European Union a driver of closer cooperation: EU 2030 energy strategy State aid guidelines on environment and energy The European Energy Union aimed at securing affordable and climate-friendly energy Implementing the EU Energy Union Integrated National Energy & Climate Plans * Booz & Co.: Benefits of an integrated European energy market, report from july 2013 for the European Commission. Page 12
Renewable Energy Page 13
Denmark s Current Power Mix (2015) Biomass 11% Solar PV 1.8% Other 1.5% Fossil 44% Electricity consumption based on type of input Total share of RES: 56 % Wind 41.8% Page 14
Renewable energy in domestic energy supply 1995-2015 60.0 50.0 Pct. Share of renewable energy in domestic electricy supply 40.0 30.0 20.0 10.0 0.0 1995 2000 2005 2010 2015 Page 15
Wind Power Page 16
Wind Power - key points - Map wind resources - Consider designating areas to wind turbines - Cluster wind turbines in the landscape - Define clear noise limits - Grid connection and planning - Public acceptance - One-stop-shop Page 17
On shore wind resources and population density for Denmark 18
Offshore Wind Power Page 19
Approach to Offshore Wind Establishing well-defined and attractive conditions for applicants via: Strategic offshore planning process and transparent tender procedures with fully consented environmental impact assessments before the submission of the tenders. Timely establishment of grid connection guaranteed by the Danish state and paid for by electricity consumers. Tenders Calls for tenders for specific screened areas Guaranteed fixed prices pr. kwh determined in the concession agreement Direct competition price only awarding criteria Fixed feed-in tariff Truly one-stop-shop permitting process Page 20
Role of the Danish Energy Agency Responsible for the call for tenders Contracting authority Responsible authority for EIA offshore One-stop-shop for permits Planning of future wind farms In dialogue with the bidders in the call for tenders to ensure cost-reducing initiatives Page 21
Wind capacity in Denmark (2012) Page 22
Renewables in Heat Page 23
Denmark s Current Heat Mix (2014) Other 0% Oil 6% Heat consumption based on type of input District Heat 51% Natural Gas 16% RE 23% Total share of district heat: 51 % Total share of direct RE: 23 % *w/o manufacturing industry Electricity 4% Page 24
Transforming District Heat TJ 60 000 Biogas 2% Other 0% Oil 1% Natural gas 50 000 40 000 Coal Natural gas 19% 30 000 20 000 Biomass Other RE Biomass 46% Coal 20% 10 000 Other fossil fuels 0 1995 2000 2005 2010 2011 2012 2013 2014 Year Solar 1% Waste 9% Waste heat 2% Page 25
Bioenergy Page 26
Solid Biomass in Energy (2014) Solid biomass in gross domestic energy consumption, Energistatistikken, 2014 Page 27
Biogas Production More than 150 biogas producers in Denmark Support schemes for different end-use - Electricity - Heat - Upgraded to the natural gas grid - Process - Transport PJ 20 18 16 14 12 10 8 6 4 2 Process and transport Upgraded to natural gas grid Electricity and heat 0 2012 2014 2016 2018 2020 2022 2024 Year Page 28
Integrating RE in the power system Page 29
Danish electricity system Denmark is a transit country for trade Increased system flexibility for integrating wind and solar power Success of Nordic market is integration of different technologies over a large geographical area resulting in more robust national power systems
Demand (TWh) Demand (%) Danish electricity system will soon be dominated by variable RE 40 100% 35 30 25 20 15 10 5 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0% Demand covered by Danish wind power Wind power as % of consumption Demand covered by other generation & imports
Price Taker due to Cross Border Electricity Connections Same price in all neighboring countries Same price in Denmark and the Nordics Same price in Denmark and Germany Different price in Denmark than in neighboring countries App. 20 pct. of the time App. 50 pct. of the time App. 20 pct. of the time Ca. 10 pct. af tiden Page 32
Latest developments Offshore/near coast 350 MW wind park at 6.4 Eurocents/kWh World record low price for offshore 600 MW wind park: 5 Euro cents/kwh PSO to be phased out from 2017-2022 and become part of annual national budget. New policy target: 50 RE in 2030 of overall energy consumption. Page 33
Thank you for your attention! Any questions? Read more at www.ens.dk Page 34