As concerns grew over global warming in the 1980s, coupled with the energy crises experienced in the 1970s, Denmark found itself at the sharp end of a renewable energy movement in a bid to limit its dependence on foreign oil. The country immediately went on to adopt various laws calling for a cut in carbon emissions and outlawing the construction of nuclear power plants.
Given its large offshore wind resources and large expanse of sea territory with shallow water depth where siting is most effective, it made sense for Denmark to cultivate a wind power industry.
At the centre of the Danish wind movement is the Danish Wind Industry Association which is a not-for-profit organisation covering over 200 companies.
Rune Birk Nielsen of the DWIA said the association has involvement across the board, ranging from utilities to suppliers and sub-suppliers. ‘To sum it up, we work with everyone from the top to the bottom of the chain in this industry. The aim of the game is the make the best possible frame for the industry to succeed in Denmark.’
Over the years, many investors point towards Denmark as a success story. However, with such some success, will over-crowding deter future investments and potentially harm the Danish market?
Nielsen said, ‘I don’t tend to see that reaction from the people we work with. On the contrary, I believe we will see the wind industry continue to grow, rather than deter people from getting involved. The climate legislation to be signed in Denmark later this year is expected to reaffirm wind’s role in meeting Denmark’s renewable energy goals. At present, we are one of the only solutions available which could really fulfil those targets.’
Nielsen believes that the fact that wind energy has been prevalent since the 1970s rather than introduced on a gradual basis means it will continue to play a vital role; ‘In the 1980s we started commercialising the production of wind turbines and several production companies began to venture into this market. Market-wise, the growth started in the 1990s with the introduction of major financing.
These two combined have forced politicians to sit up and take notice, really setting the bar for Denmark to become the leader within this field.’
In comparison to its European counterparts, the DWIA maintains that Denmark is number one in market shares with huge wind businesses, as well as pole position for the integration of wind power into electricity generation. However, Nielsen acknowledges that other countries will attempt to overtake Denmark’s position as awareness of global warming and opportunities in renewable energy continue to grow.
‘I do believe that over the next four or five years we will experience a huge development in offshore wind energy in other countries, namely the UK, Germany and perhaps even the north east China. The US is also getting started in this market following new legislation. Globally,
we have very strong wind resources so it’s inevitable that other countries will start to rival Denmark. However, I think it will be good for us to have strong competition to push our ideas ahead.’
Denmark continues to develop its market-leding capabilities in response to foreign rivals. Nielsen said, ‘Policy will play a vital role. We believe it is the job of the politicians to step up and set long-term targets for the industry to work towards.’
Despite the financial downturn, Nielsen is convinced that the wind industry will continue to see growth. ‘The financial downturn has resulted in projects being postponed rather than cancelled. The global warming question hangs heavily and we must not be deterred from creating a
green economy.’
Nielsen, hoverer, does concede that 2009 has been a slow year compared to the growth witnessed in 2008 and the preceding years. ‘The years to come will mark a return to that huge growth and we are aiming to see around 20 per cent growth year-on-year. We are very optimistic that wind energy will remain a significant contender which is why we set ourselves such strict targets. Last year we published our annual statistics based on our members and when we asked how our members saw the long-term growth rate, they firmly believed that 2010 onwards will see dramatic growth of between 15-20 per cent so there is no reason to worry.’
Nielsen concluded, ‘We will play a huge role in stopping climate change in its track and our success so far has showed that we have no reason to fear the 2020 targets.’
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Given its large offshore wind resources and large expanse of sea territory with shallow water depth where siting is most effective, it made sense for Denmark to cultivate a wind power industry.
At the centre of the Danish wind movement is the Danish Wind Industry Association which is a not-for-profit organisation covering over 200 companies.
Rune Birk Nielsen of the DWIA said the association has involvement across the board, ranging from utilities to suppliers and sub-suppliers. ‘To sum it up, we work with everyone from the top to the bottom of the chain in this industry. The aim of the game is the make the best possible frame for the industry to succeed in Denmark.’
Over the years, many investors point towards Denmark as a success story. However, with such some success, will over-crowding deter future investments and potentially harm the Danish market?
Nielsen said, ‘I don’t tend to see that reaction from the people we work with. On the contrary, I believe we will see the wind industry continue to grow, rather than deter people from getting involved. The climate legislation to be signed in Denmark later this year is expected to reaffirm wind’s role in meeting Denmark’s renewable energy goals. At present, we are one of the only solutions available which could really fulfil those targets.’
Nielsen believes that the fact that wind energy has been prevalent since the 1970s rather than introduced on a gradual basis means it will continue to play a vital role; ‘In the 1980s we started commercialising the production of wind turbines and several production companies began to venture into this market. Market-wise, the growth started in the 1990s with the introduction of major financing.
These two combined have forced politicians to sit up and take notice, really setting the bar for Denmark to become the leader within this field.’
In comparison to its European counterparts, the DWIA maintains that Denmark is number one in market shares with huge wind businesses, as well as pole position for the integration of wind power into electricity generation. However, Nielsen acknowledges that other countries will attempt to overtake Denmark’s position as awareness of global warming and opportunities in renewable energy continue to grow.
‘I do believe that over the next four or five years we will experience a huge development in offshore wind energy in other countries, namely the UK, Germany and perhaps even the north east China. The US is also getting started in this market following new legislation. Globally,
we have very strong wind resources so it’s inevitable that other countries will start to rival Denmark. However, I think it will be good for us to have strong competition to push our ideas ahead.’
Denmark continues to develop its market-leding capabilities in response to foreign rivals. Nielsen said, ‘Policy will play a vital role. We believe it is the job of the politicians to step up and set long-term targets for the industry to work towards.’
Despite the financial downturn, Nielsen is convinced that the wind industry will continue to see growth. ‘The financial downturn has resulted in projects being postponed rather than cancelled. The global warming question hangs heavily and we must not be deterred from creating a
green economy.’
Nielsen, hoverer, does concede that 2009 has been a slow year compared to the growth witnessed in 2008 and the preceding years. ‘The years to come will mark a return to that huge growth and we are aiming to see around 20 per cent growth year-on-year. We are very optimistic that wind energy will remain a significant contender which is why we set ourselves such strict targets. Last year we published our annual statistics based on our members and when we asked how our members saw the long-term growth rate, they firmly believed that 2010 onwards will see dramatic growth of between 15-20 per cent so there is no reason to worry.’
Nielsen concluded, ‘We will play a huge role in stopping climate change in its track and our success so far has showed that we have no reason to fear the 2020 targets.’
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