ACTING THE WAy THE INDUSTRy NEEDS 9 When dialogue, transparency and flexibility become more than just words ACTING THE WAY THE INDUSTRY NEEDS On the path to becoming a nation independent of fossil fuels with large amounts of wind energy in the electricity grid, having the right political framework plays a major role. Denmark leads the way in making political decisions that the industry needs. But how did we get to this point, and what are the big challenges that still remain? Peter Sehestedt, Special Advisor, Danish Energy Agency Denmark has set ambitious political targets for the use of wind energy. In 2010, the Danish Commission on Climate Change Policy presented its recommendations for the total phasing out of fossil fuels. Set in place in 2012, the current energy agreement includes a target of applying 1,900 MW of new capacity from onshore and offshore wind. By the end of 2021, this capacity needs to be realised. As a result, wind energy is expected to cover 50% of Danish electricity consumption in 2020. The agreement secures a substantial expansion of the Danish wind energy capacity offshore, near-shore and onshore. The offshore expansion alone corresponds to the annual electricity consumption of 1.4 million average Danish households. The first step to establish more offshore wind farms is a strong and smooth planning phase, which reflects the importance of flexibility in the tendering processes, just as the ability to conduct dialogue with the market and to learn from experience is paramount for success. Only then can the authorities attract the most competitive bids for these complex projects which carry large economic commitments and which are influenced by political currents. Tenders that work The Danish Energy Agency has strived to develop a scheme that delivers on these parameters. As such, the Danish tendering approach for setting up offshore wind farms is the result of many adaptations over time. In fact, Denmark has the longest experience with tenders for offshore wind energy in the world. The strength of the Danish approach can be divided into three areas. Firstly, a strategic offshore planning process with transparent tender procedures and fully consented environmental impact assessments in place before the submission of tenders. Secondly, a timely establishment of grid connection guaranteed by the Danish state and paid for by the electricity consumers. Thirdly, a fixed settlement price and a unique one-stop-shop permitting process, in which the Danish Energy Agency grants all the required permits and coordinates with other relevant public authorities. Dialogue as a new Danish trademark In the offshore market change is a constant and each tender is different from the next. What we have learned is that the tendering authorities need to speed up on their learning capacity. If we want to ensure the best possible market prices and projects in our tendering procedures, we have to be part of the changes more or less at the same time as they happen. This is why dialogue has become the new trademark of the Danish tendering procedures and why the Danish Energy Agency is promoting a vision where authorities and industry act like equal partners. Our goal is to share this vision with all major offshore countries and we invite all tendering authorities in Europe to start a dialogue of their own. Ultimately, this dialogue has the potential to create a new network of governance and help establish a common vision of offshore tendering in the European market. One-stop-shop means full speed ahead The Danish tendering process is unique, and the one-stop-shop permitting procedure plays a central role in this. To ensure a rapid and as-little-as-possible bureaucratic application process, the Danish Energy Agency grants all the required permits and coordinates with other relevant public authorities. This results in a single point of access for enterprises or industry in need of assistance on issues related to permits and tendering procedures – and this is one of the political framework conditions leading Denmark towards a future as independent of fossil fuels.
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