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Page added on July 23, 2014
Onshore Wind Power Is Now Cheapest Form Of New Electricity In Denmark
A new analysis from the government of Denmark found that wind power is by far the cheapest new form of electricity in the country. New onshore wind plants coming online in 2016 will provide energy for about half the price of coal and natural gas plants, according to the Danish Energy Agency (DEA), and will cost around five cents per kilowatt hour.
“Wind power today is cheaper than other forms of energy, not least because of a big commitment and professionalism in the field,” said Rasmus Peterson, Danish energy minister. “This is true both for researchers, companies and politicians. We need a long-term and stable energy policy to ensure that renewable energy, both today and in the future is the obvious choice.”
The DEA analysis, which was based on a four percent interest rate and International Energy Agency fuel and carbon price forecasts, found that wind would still be the cheapest energy source if interest rates increased ten percent. It also stressed “that the analysis was not based on a full cost-benefit assessment of different technologies that included an assessment of environmental benefits, taxes or subsidies.”
Denmark has been a leader in wind energy production for decades, and the efforts are paying off as evidenced by a string of benchmarks. In December, wind power accounted for more than half of the country’s electricity consumption for the first time. This 50 percent threshold is a goal the Danish government has set to be the standard share of wind power in the total electricity consumption mix by 2020. During the last week of 2013, when electricity consumption is down due to holiday closings, wind turbines reached the equivalent output of 68.5 percent of electricity consumption.
By 2020, the country aims to produce 70 percent of its energy from renewable sources and to raise that to 100 percent by 2050. Onshore and offshore wind power will make up most of this capacity. The country has come up with some innovative ways of dealing with issues like local resistance, which can be a hindrance to large projects that encroach on people’s property.
In May, Kristoffer Böttzauw, the deputy director general of the DEA, said that in 2008 the government introduced new requirements that directly compensate residents for any losses. For example, if a house loses value after a wind turbine goes up nearby, the operator must compensate the owner for the loss. Also, at least 20 percent of the shares for any project must be offered to local residents, giving them a more direct stake in the undertaking. He also said that the community receives a direct allocation per megawatt of power generated.
He said these changes “bring direct benefits to the community and its citizens if they give their support.”
To reduce the imposition of new power lines, most of the cables are being laid underground. This is an expensive solution but one that was deemed necessary according to Böttzauw, who said “locals could not be expected to put up with new utility poles in addition to the towering turbines.”
When there’s excess wind power, Denmark is looking for ways to store that energy. One method is through electric cars that can store wind energy and send it back into the system later. Another is to use heat pumps to store excess capacity that can later heat homes and buildings. Sending excess power to a pumped storage hydropower facility is another option. New technologies for storing intermittent renewable sources such as wind and solar are also being rapidly developed
17 Comments on "Onshore Wind Power Is Now Cheapest Form Of New Electricity In Denmark"
Nony on Wed, 23rd Jul 2014 7:31 pm
I’ve been hearing about pumped hydropower for renewables since the 70s. Why is this still theoretical, not practiced all over the place, all the time?
Also, I wonder if that stuff is really cheaper when you include storage and distribution costs and exclude subsidies.
Makati1 on Wed, 23rd Jul 2014 9:14 pm
These kinds of arrangements would not work in any big country.
Denmark: ~12,500 sq.mi. (Twice the size of Massachusetts)
Population: 5.57 Million (one million less than Massachusetts)
Many things favor Denmark, except sea level rise… that would not work anywhere else.
rockman on Thu, 24th Jul 2014 7:06 am
M – That’s true but not really a good excuse. Though Texas (21X larger than Denmark) can’t brag as well as Danes we still beat all the other states hands down. Consider the decades long battle to get offshore wind power of the east coast while Texas welcomed it with open arms and had the first offshore tower put in service a few years ago. The state gov’t (of the largest fossil fuel producer in the country…by far) has been very aggressive supporting both onshore and offshore wind power.
We have some of the cheapest fossil fuel resources for consumers in the country. If we can do so can many other states IMHO.
MSN Fanboy on Thu, 24th Jul 2014 7:26 am
Also, I wonder if that stuff is really cheaper when you include storage and distribution costs and exclude subsidies.
BOOM! AND THE ANSWER IS: NO.
Stat speak: by percentage renewable energy gets more subsidy then fossil fuels…..
Truth Hurts…
I bought my kit with a goverment subsidy. 🙂 now all they need to do is subsidise my wage, hey presto i earn more.
Large scale renewables are a joke, especially in a growth orintated world lol
Energy efficienty is at least possible and should be pursued first.
dashster on Thu, 24th Jul 2014 9:48 am
In the past I read that Denmark was able to do much wind because of arrangements with one or more of the Scandinavian countries that had a lot of hydro. Denmark could send excess to, say Sweden
when the wind was blowing, and get power from Sweden when the wind wasn’t blowing. Sweden would have to adjust their hydro plants accordingly.
Kenz300 on Thu, 24th Jul 2014 10:06 am
The cost of oil, coal and nuclear keeps rising and causing environmental damage.
The price of wind and solar keeps dropping and its safe and clean.
———————
Renewables Provide 56 Percent of New US Electrical Generating Capacity in First Half of 2014
http://www.renewableenergyworld.com/rea/news/article/2014/07/renewables-provide-56-percent-of-new-us-electrical-generating-capacity-in-first-half-of-2014
rockman on Thu, 24th Jul 2014 10:43 am
MSN – I wondering about that also. The operation cost of producing wind electricity is pretty cheap. But then you have to factor in all the costs especially those off book such a subsidies etc. Texas does provide a good bit of tax breaks for wind. But that’s also giving up some taxes when you wouldn’t be collecting any at all it the wind farms weren’t built. So even then it’s a net gain in revenue plus we have cheaper power. While we produce a fair percentage of wind electricity statewide in some of the lower population areas they are getting 100% of their power from wind.
Davy on Thu, 24th Jul 2014 11:16 am
Rock, I admire Texas. It is good to be diversified in most cases so any criticism of wind power IMHO is out of place. If, the placement is right and the integration with the grid is optimal wind power is a great investment. Complaining about or arguing against government subsidies is a fool’s game. Government subsidies are just another name for market distortions and favoritism. Government subsidies may or may not be advantageous, proper, or economic. Just looking at sustainability and resilience AltE has a place. Besides any investment in energy infrastructure is good. Tell me how much sustainability and resilience a new Nascar or sports stadium offers society or that new Disney World. I do want to say the AltE’ers and greenie weenies are pulling their pud if they think the world will transition to something remotely like we know now through their prescriptions (Ken). There is no options nor the time to make this transition. AltE is just a niche. Green is nothing more than marketing because these folks hop in their car and run to a store to buy something green. Green is no car, no A/C, no grocery store groceries, no electronics, and no consumerism. We will be back to renewables but not the techie types. We will be back to the 19th century types.
Arthur on Thu, 24th Jul 2014 12:11 pm
Meanwhile in Germany yet another solar-wind record: 33% electricity from renewables during first half year 2014.
http://thinkprogress.org/climate/2014/07/08/3456934/renewable-one-third-germany/
In the very long term there is no energy problem.
#welcometothesolarage
Davy on Thu, 24th Jul 2014 12:39 pm
I agree Art an impressive accomplishment that you would expect from the Germans. I want to clarify your ” no energy problem in the long term” by saying when our global population is down to 2BIL I will agree. Since it will most likely take collapse to get to 2BIL I doubt there will be Human complexity on that scale. So, I agree Art with 2BIL people or less without a collapse. That is a tall order Art!
Arthur on Thu, 24th Jul 2014 9:10 pm
Nony says: “I’ve been hearing about pumped hydropower for renewables since the 70s. Why is this still theoretical, not practiced all over the place, all the time”
That is because you are not paying attention. The European supergrid is a core element in Europe’s renewable energy strategy, with massive pumped up hydro-storage, first and firemost in Norway:
http://deepresource.wordpress.com/?s=European+supergrid
Makati says: “These kinds of arrangements would not work in any big country.”
Absolute unfounded assertion. You admit it works in Denmark, but if you push fifty Denmark’s together into a USA, all over sudden it does not work, because of size. That does not make sense. However, an essential element of success is that you have a population a la that of Denmark: a people that understands the situation of Denmark: no resources whatsoever. A population that said:
Atomkraft nej tak!
….decades ago and a population that can generate income necessary for these grand scale investments in renewable energy. Countries like Denmark, Germany, Italy, Spain have basically nothing to fear. Countries like Britain and Holland are slow because of their membership of the great Anglo oil empire, but will catch up later, certainly Holland.
But mass immigration from the third world makes it increasingly difficult for a country to implement a renewable energy strategy and demand the necessary sacrifices.
MSN says: “Also, I wonder if that stuff is really cheaper when you include storage and distribution costs and exclude subsidies… NO”
You are right about storage. Until now the German renewable energy sector uses the integrated European electricity market as a sort of virtual storage. It happens regularly that on windy days Germany floods European markets with wind energy ‘too cheap to meter’. Victims are notably the Dutch with their brand new, state of the natural gas power stations, that unfortunately, still run on, well, expensive natural gas. But who cares about the cost of pumped up hydrostorage, if their is no alternative anyway.
Nony on Thu, 24th Jul 2014 9:14 pm
They should drill for oil from their shales. 🙂
Yum, yum, light sweet crude. I like the vanilla maple syrup flavor. 😉
peakyeast on Fri, 25th Jul 2014 6:03 am
33% of ELECTRICITY covered by renewables..
Imagine when transportation sector has to be covered by electricity – then its 3.3%?
Arthur on Fri, 25th Jul 2014 12:28 pm
“Imagine when transportation sector has to be covered by electricity – then its 3.3%?”
Not really. Take a very intensively used Dutch railway network: consumes merely 1% of the entire electricity budget. Project is underway to power all trains for 100% by wind in 2018:
http://deepresource.wordpress.com/2014/05/15/dutch-railways-powered-100-renewable-by-2018/
But it is true, it is way too late to accomplish a smooth transition; the dip is coming. But again: in the very long run there is no energy problem.
Davy on Fri, 25th Jul 2014 12:34 pm
Art, you are going to need all that wind to pump water. Hey that is an idea since you have to pump water anyway pump it For AltE storage. I can imagine huge water towers like here in the state in every town holding that water for nighttime power generation.
Arthur on Sat, 26th Jul 2014 1:14 am
Davy, that ‘plan Lievense’ is around now for more than 30 years:
http://www.bojk.eu/images/lievense_1.jpg
I was a student when I heard Lievense, a great civil engineer in the best Dutch traditions, presenting his case for a large scale hydro-storage system. Today I changed my mind. It is better to simple add new cables next to the existing NorNed cable to Norway, which has proven to be a smashing financial success
See wikipedia NorNed
Davy on Sat, 26th Jul 2014 4:13 am
Art, I have seen interesting Documentaries on the dutch living on floating structures anchored and able to move up and down with the whims of the ocean’s tides. In all the world the Dutch are known for their civil engineering skills when it comes to the rising sea levels. It is a pity to see all that rich farmland and farm traditions submerged but there is always aqua farming.