Industry News-Danish Wind Energy Industry Blows Europe Away

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.’

click here for the original version of this article

Industry News-Commission tables EU winter gas storage plan

The European Commission yesterday (16 July) proposed a new regulation on the security of gas supplies, obliging member states to take pre-emptive measures to avoid disruptions in the wake of a January dispute between Russia and Ukraine.

Background:
In November 2008, the European Commission presented a revised version of a 2004 directive on the security of gas supplies as part of the Second Strategic Review, aiming to reduce Europe's reliance on foreign energy imports.

The January gas dispute between Russia and Europe's main transit country Ukraine made the revision of the existing 2004 directive on gas supply security imperative, as it revealed the EU's inability to respond to emergencies. The row led to widespread supply disruptions for a fortnight in Eastern Europe, reducing the EU's gas supply by 20%.


"We have known for some time that the existing arrangements to deal with gas emergencies are insufficient […] All member states recognise that we need common standards for security of gas supply for the whole EU," said the bloc's energy commissioner, Andris Piebalgs.

The proposal authorises the Commission to declare a Community emergency at the request of a single member state, or when the Union loses more than 10% of its daily gas import from third countries. It also entitles the EU executive to coordinate member-state actions between one another and towards third countries.

EU states have a three-year transitional period until the end of March 2014 to ensure that they have either enough gas storage capacity or diversified energy supplies to handle a 60-day supply disruption in extreme winter weather.

But unlike the proposal for a revised directive on oil stocks approved by ministers last month (EurActiv 15/06/09), the gas regulation does not require compulsory strategic stocks as it is replaceable in most uses, the Commission said.

Instead, the document sets common standards for member states to define "serious gas supply disruptions", called 'N-1'. This refers to the preparedness of a country to satisfy its total gas demand during 60 days of exceptionally high gas demand if there is a disruption in the largest gas supply infrastructure.

In order to meet the N-1 standard, member states have to designate a competent authority to assess risks and establish both preventive and emergency plans.

The Commission reserves the right to require that plans be revised if they do not comply with the regulation.

To meet the infrastructure requirements, the regulation obliges transmission system operators to ensure reverse flow capacity on all interconnections within two years after the entry into force of the directive, if it would enhance the security of supply of a member state.

Piebalgs said Baltic nations would face the biggest challenges in meeting the standards, with the largest investments needed in Lithuania and Slovenia,where gas consumption is significant. Denmark, on the other hand, is best placed with its own production, while Germany and Belgium have "decent storage capacity" and are doing fine, he added.

For the full copy of this article click here