DENMARK TO MEET 50% WIND ENERGy IN 2020 11 A cross-border electricity market and good connections to neighbouring markets ensure first-class security of supply “We are in the process of transitioning from an energy system where generation is adapted to consumption to one where consumption is adapted to generation” Peder Østermark Andreasen, CEO, Energinet.dk, the Danish TSO responsible for supplying Denmark with electricity and natural gas DENMARK TO MEET 50% WIND ENERGY IN 2020 “It can’t be done”. “It’s not possible to integrate more than a few per cent wind energy in an electricity system”. These are words we sometimes hear when foreign visitors visit Energinet.dk. However, when we open the door to our control room and show them that we on any given day have 20, 30, 40% wind energy or more in our electricity system, we are not presenting them with a theoretical calculation or a case story. What they see is a quiet control room without panic and the electricity system that supplies Danish households and businesses with electricity – which has one of the highest levels of security of supply in Europe. This is possible because Denmark has a well-developed electricity grid and strong connections to our neighbouring countries Norway, Sweden and Germany (see map). 50% wind in 2020 and more to come We are making good progress to meet the objective that wind energy will cover 50% of the Danish electricity consumption. In 2014, the figure was 39.1%, and with the wind energy generated by future offshore wind farms in particular, we will reach the equivalent of 50% wind energy in electricity consumption. Denmark does not have mountains, rivers or many hours of sunshine, but we have wind and a unique location. Wind energy is one of Denmark’s most remarkable renewable energy sources and it will become even more important after 2020. Looking towards 2035, for example, there will be many more days where wind energy generation will exceed our consumption. From generation to consumption We are transitioning from an energy system where generation is adapted to consumption to one where consumption is adapted to generation. That is why electricity must be able to flow far, across borders and in large quantities. The prices must reflect the fact that there are days with ample generation or high demand, and electricity must increasingly be integrated into flexible consumption, such as heat pumps and electric vehicles. Only by taking a cross-border approach and ensuring maximum utilisation of domestic flexibility will we be able to secure an effective and successful energy transition. New interconnectors To be able to handle this, we have joined forces with TenneT, TSO for power and gas in Netherlands and Germany, to build a 700 MW and 320 kilometre submarine cable linking the Dutch and Danish electricity systems - and together with the National Grid, TSO for power and gas in England, we are looking into the possibilities of laying a 600 kilometre cable to the UK. Today, Denmark is part of a cross-border Nordic market, and we are integrated with Central Europe. Even though we as consumers do not notice the changes, we buy and sell electricity across borders hour by hour. Electricity generated by wind, water, sun, coal, gas and nuclear power flows freely back and forth depending on supply and demand. But the future requires even more openness and cross-border thinking. A well-functioning market is crucial if Denmark and the rest of Europe are to maintain a high level of security of supply. New market model With increasing amounts of renewable energy, the current business model for electricity is put under pressure, where especially conventional generators based on fossil energy sources are challenged. In the long term this creates a risk of insufficient capacity during future periods with limited renewable energy available, e.g. during periods without wind. We have therefore invited industry players to a sector-wide cooperation with the aim of developing a new market model that will help ensure a high level of security of supply and contribute to a healthy investment climate in the energy sector, and furthermore encourage interaction and flexibility across the value chain. 2013 2035 Wind production and power consumption 2013-2035 Today, wind rarely exceeds the total power consumption. In the future this will happen more often. Here shown in three weeks in 2013 and three weeks in 2035. Week 1 Week 2 Week 3 Week 1 Week 2 Week 3 Electricity consumption Electricity generation from wind turbines
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