2.3 Renewable Energy

The long-term perspective over a period of 30 years is the development of an energy system in which an increasing proportion of the energy consumption is covered by renewable energy. The assumption is that there will be a gradual phasing in of renewable energy as technological and economic conditions make the various renewable energy solutions commercially viable.

On the basis of the initiatives that have been launched, it is estimated that domestic renewable sources of energy will contribute some 12-14% of the total gross energy consumption by 2005. The Government intends to continue the development of renewable energy at an average annual rate of 1%. This entails renewable energy increasing its share of the energy supply to about 35%, a development which will also be necessary if it is decided to halve CO2 emissions by 2030 relative to 1988.

In the short term, the development of renewable energy is expected to take place primarily by means of increasing the use of bioenergy and wind power, which are also expected to provide the largest contribution in the longer term. As a consequence of technological developments within individual fields, other renewable energy technologies such as solar cells, heat pumps, and wave energy will become increasingly important.

As early as in the autumn of 1995, the Government decided to intensify its activities in the field of renewable energy by launching a number of concrete initiatives designed to increase the use of renewable energy. It is estimated that these initiatives will result in a reduction of CO2 by at least 1.5 million tonnes in 2005, while at the same time supporting the Government's wish to see cleaner sources of energy steadily gaining importance in the energy supply of the future.

There will still be unexploited renewable energy resources available for increased use of renewable energy in Denmark's energy supply, but further extension still calls for the application of a number of instruments. It is necessary to support research and development in new and existing renewable energy technol-ogies. Other instruments include support for demonstration projects, investment grants, and a suitable structure of taxation. In connection with the coming liberalisation of the electricity market, it must be ensured that the instruments for continued expansion of the use of renewable energy in power production will be available.

At the same time it is planned to increase the use of goal-oriented information campaigns.

BIOMASS The implementation of the biomass agreement of 1993 means that the use of biomass for energy purposes will be increased from 50 PJ to some 75 PJ a year before the end of 2000. Biomass will then comprise almost 10% of the total consumption of fuel in the year 2000.

The biggest expansion will be caused by the power plants' increasing use of straw and wood chips. In addition the use of biogas and landfill gas will increase following the Government's initiatives in the autumn of 1995.

The main part of the present exploitation of biomass takes place in plants which only produce heat. The objective of the development in the coming years is to increase the use of biomass in power producing plants. This will partly be achieved by increasing the use of straw and chips in power plants, partly through the ongoing conversion of waste heating installations to power production, and partly by further development of combined heat and power technologies for smaller district heating plants.

The Government intends this development to be continued.

Residual and waste products from agriculture and forestry will remain the basis for some years of the utilisation of biomass. At the end of 2000 there will still be large, unexploited quantities of raw material for use in plants using biogas, landfill gas, and straw. The main part of the present wood resources will be exhausted, but it has been decided to increase Danish wood resources by afforestation. In addition increased production of bioenergy, including energy crops, will be required to meet the demand for biomass after 2005. In the long term, stable supplies of biomass will depend on land use. If, for example, the agricultural policy of the EU were to be changed, the shortage of land might mean that the production of biomass for energy purposes would take place as a byproduct of more valuable main crops. After use, the main crop itself may be used in the supply of energy. The use of land for energy crops should not, however, take place before the possibilities of using residual products for energy purposes have been exhausted.

Initiatives in the field of biomass are directed, firstly, towards conversion from heat production plants only to combined heat and power units, secondly towards increased exploitation of straw, biogas, and landfill gas, and thirdly towards reduction of the costs of producing biomass for energy purposes.

Consequently the Government intends to:

  • Promote decentralised development of heat and power production based on biomass by:
­ promoting the use of gas from all relevant landfills for power production before 2005
­ promoting the introduction of biomass before 2005 in some 350 block heating units with heating requirements above 250 Kw which are located outside district heating and natural gas distribution zones and areas
­ ensuring that the establishment of new individual natural gas supplies in minor communities shall be dropped in favour of switching to biomass based district heating or CHP
  • Contact the parties to the biomass agreement with a view to changing it in ways that can lead to:
­ making it possible within the framework of the agreement to replace its very exact quantities of straw and wood chips with a more flexible mix of straw and wood chips. This will provide a flexibility that can reduce total costs while simultaneously introducing an element of competition which can reduce the prices of fuel.
­ permitting a general opening for the use of biomass in natural gas areas, in order to ensure the possibilities of further development of biomass CHP after 2000.
  • Implement a demonstration and development programme for energy crops designed to contribute to the evaluation of the long-term consequences of increasing the Danish biomass resources by energy crop production, in terms of finance, energy and environment, nature and landscape, and commerce.
  • Carry out a limited experimental programme with a view to assessing the basis for the permanent production and utilisation of biofuels.

WIND POWER In Denmark there are at present more than 3,800 wind turbines with a total capacity of about 600 MW and annual power production of more than 1,200 GWh. The most recent large wind turbines are so competitive today that the use of electricity from wind turbines is one of the cheapest ways of reducing CO2 emission from power production.

The total capacity in 2005 is presumed to be 1,500 MW and, as appears from the Government's Renewable Energy Initiative Package, a large number of the wind turbines are to be built by the utilities. A considerable number will, however, still be privately owned. To meet the target for 2005, it will be necessary to maintain a development rate of at least 100 MW/year.

The most economical way is still to erect wind turbines on land. But area resources on land are limited when housing as well as nature and landscape considerations are to be taken into account. Furthermore, wind conditions at sea are considerably better than at sites on land, and wind turbines erected offshore are expected to become competitive in step with the development of technology.

The Government expects that a significant part of the expansion until 2005 will take place on land. As wind turbines become larger and hence more difficult to place in landscapes, the number of new sites will be limited. The increase of wind turbine capacity on land after 2005 will have to be effected, among other things, by renovation of wind turbine areas as well as by removal or replacement of existing wind turbines in accordance with regional and municipal planning. In the longer term it is to be expected that the main part of new development will take place offshore.

The Government intends to continue its promotion of the employment and export opportunities by continued research and development. This will support the Danish wind turbine industry, which is the largest in the world, with a turnover in 1995 of more than DKK 4 billion, and exports of wind turbines and wind turbine components of some DKK 3.5 billion. The number of jobs in the sector has increased to over 9,000.

In order to provide individual households outside areas with district heating and natural gas supplies with better opportunities to contribute to the use of cleaner energy, the Government will support development of small wind turbines (household turbines) producing electricity for heat and power. The small wind turbines are seen as a supplement to the general development of wind power.

The Government intends to:

  • reach a decision on development of offshore wind turbines on the background of the action plan for offshore wind turbines which will be completed before July 1, 1997
  • make wind turbine planning a regular feature of regional and municipal planning
  • present proposals on revision of the scheme for replacement of older wind turbines
  • on the basis of the outcome of the ongoing demonstration programme on household turbines, evaluate the opportunities for promot
  • ing a development.

SOLAR ENERGY The installation of solar heating systems is one of the methods available to individual households for contributing to the reduction of CO2 emissions. The Government expects that the annual sale of solar heating units will double from some 2,500 to some 5,000 within a few years, among other things as a result of increased cooperation with the natural gas companies. In addition, a wider distribution of do-it-yourself units is expected.

In the longer term, large-scale development of solar cell units will be a possibility. Today solar cells are technologically well developed, but wider distribution depends on considerable price reductions through serial production.

Consequently:

  • support will continue to be offered to new kinds of organisation and funding, including developing collaboration with the energy supply companies on solar energy
  • initiatives will be taken to promote the use of larger solar heating units, including solar heating installations in public buildings with large water consumption, i.e. primarily municipal, regional and Government institutions.

GEOTHERMICS The resources of geothermal heat are large. In Denmark geothermal energy has only been exploited at a minor plant at Thisted. The limited exploitation up to now is primarily due to the considerable financial uncertainty surrounding the establishment of such plants. Secondly, the heating markets have hitherto been reserved for combined production of electricity and heat which has produced significant energy and environmental gains. In the longer term geothermics can, however, become an interesting heat source.

Experience with the established geothermal plant in Thisted is good, although there is need for further experience, for instance with geothermics in large heating markets, heat storage in geothermal plants, and utilisation of geothermics in connection with the established CHP supply system.

The Government will therefore launch an initiative to establish a geothermal plant in one of the major district heating towns. The plant will essentially be a demonstration plant. To this end the Government has set up a committee whose brief is to produce a concrete proposal for the establishment of a geothermal plant, as well as to make an analysis of the future prospects of geothermics in the Danish energy supply.

RENEWABLE ENERGY ISLAND A dramatic shift to renewable energy is economically unrealistic in the short term. In this connection it would be of interest to demonstrate the possibilities of a small community to base its entire energy supply on renewable energy. Local commitment will be decisive for the implementation of a demonstration project of this nature. It could well become an effective demonstration project for Danish renewable energy technology.

The Government will work on the designation of a local area ­ for instance an island ­ which over a period of a few years will be prepared to change 100% to renewable energy. This would also include the transport sector.

PROMOTION OF LOCAL INITIATIVES Large scale utilisation of renewable sources of energy requires closer collaboration between the various actors in the field of energy, as well as stronger local commitment, particularly in connection with disseminating renewable energy. In order to ensure this, the Government will promote collaboration between municipal and regional authorities, local utilities, energy and environmental offices, as well as other green interest groups. Several of these already cooperate in connection with initiatives in the energy sector. In addition, work of this nature can form part of local Agenda 21 activities.

2.4 The Exploitations of Danish Oil and Gas Resources