3 EXECUTIVE SUMMARY As the first country in the world, Denmark has decided to lead the transition and become entirely independent of fossil fuels by 2050. One element in reaching this target is to expand the share of renewable energy harnessed from wind, and this encompasses driving the development of an intelligent energy system capable of managing the fluctuations of renewable energy. Denmark was the first country to install a commercial offshore wind farm 30 years ago and has been first mover in the wind industry for decades. In 2016, onshore and offshore wind turbines provided around 40% of Denmark’s electricity consumption and we plan to go further with over 50% of electricity consumption to be generated by wind energy by 2021. Global hub for wind energy innovation Denmark is a global hub for wind energy innovation and development and the Danish wind industry employs more than 31,000 people. The availability of a highly skilled workforce, superb facilities for testing prototypes and a comprehensive network of companies, research institutions and government research programs make up an innovative R&D environment like nowhere else in the world. In Denmark, you can test all parts of a wind turbine from nacelles and blades to full-scale, almost market-ready, turbines, which is why companies from all over the world have located central parts of their R&D operations in Denmark. Securing a stable and cost-effective supply Approximately 4,750 turbines supply more than 5 GW of electricity to Denmark. The 5 GW constitute more than a third of the overall Danish production capacity. The large-scale wind energy integration is made possible by a well-developed transmission infrastructure, capable of handling the fluctuating wind energy resource. The Danish grid is connected to the neighbouring countries, enabling the import and export of energy during peak periods. Setting the framework for a green transition The cost of transitioning to renewable sources is declining and the latest tenders for offshore wind farms in Denmark have the lowest Levelised Cost of Electricity (LCOE). This means that that no other offshore wind farms in the world can provide power at a lower price, all expenses over the lifetime of the farm taken into consideration. An element in the success of low costs is the Danish tendering model, which includes both prequalification and a preliminary technical dialogue with potential tenderers and investors. Despite the declining costs, the projects still have to be financed and Denmark is leading the way with both wind turbine cooperatives for private citizens and large-scale public-private financial models, for instance through blended finance. About this white paper This white paper takes you through all the elements of the success story of wind energy in Denmark. From the starting point and what we now consider small-scale wind turbines to the projects and technologies that push the bar and the ambitions for wind energy as a source of renewable energy. We hope you will be inspired.
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