Policies and market status of Small Wind Turbines in Denmark 2015

Policies and market status of Small Wind Turbines in Denmark 2015

Policies and market status of
Small Wind Turbines in Denmark
2015
BY MORTEN VICTOR PETERSEN
CHAIRMAN, DANISH SMALL WIND TURBINE ASSOCIATION
Husum, New Energy, March 19 2015
Background
•  Within six years, 2009 to 2015, the applica7on of small size wind turbines have re-­‐created broad public interest in land-­‐based wind power, awareness of the importance of renewable energy and enabled ci7zens to make energy self-­‐supply a life-­‐style issue. •  The Small Wind Turbine Associa7on, SWTA, has a leading role in the launch of small scale wind power at the poli7cal and general public level. •  The SWTA was founded in June 2009 to promote the interest of wind power for the supply of individual homes, SMEs and the smaller farms with a capacity up to 25 kW. •  Is a manufactures associa7on that represents and promotes also diversity, in small size wind power in Denmark. Members
ü Victor Energy ApS ü Beck-­‐Ballum I/S ü SWP-­‐Solid Wind Power ü Thy Windpower ApS ü LS Stoker-­‐Vindmøller ü Nordic Folkecenter for RE ü Solenergi Danmark A/S ü Cirkel Energi ü Eocycle ü For7s Denmark
Ul7mo 2014 small windturbines installed: 1.036 units = 8,5 MW Danish small windturbine manufacturers and sub-­‐suppliers: 15 Achievements of the Small Wind Turbine
Association
•  Develop new industrial sector
•  Creates new jobs in
Ø  Manufacturing
Ø  Installation
Ø  Approval
Ø  Testing
Ø  Maintenance
Ø  Export
• 
Benefitting of Danish wind turbines’ favorable reputation for quality
Background of Danish legislation in 2010 of
household supply with solar, wind and
biomass
Main principle was family self-supply for the rural population
as a compensation to obtain energy services at costs similar to
urban residents that are supplied by cheap and efficient CHP
and district heating (62% of population)
l 
Max 6 kW rule applied to Wind, Solar and Biomass as single
source of supply or with a combined capacity of max 6 kW
l 
Installations larger than 6 kW were considered as production
units.
l 
Interim Incentive: Net Metering
—  4 June, 2010 Danish parliament passed Net Metering
Legislation, stopped November 2012
—  Net metering – meter runs backwards; RE production has
the value of power purchase prices, inclusive taxes and
VAT, yearly statement
—  Less than 6 kW
—  Applied to wind, solar and biomass
—  No bureaucracy
—  No government subsidy or spending
Permission from the municipality for installation in
proximity of existing buildings
The right to connect to the grid and to deliver power from
the household to the grid according to the net-metering
principle.
In maybe 5 years we can conclude if net-metering was so
expensive for the State of Denmark as the power supply
companies has claimed, and net-metering ended up in a
stop.
The conditions for Small Wind Turbines
today with Feed-In-Tariffs (FIT)
•  Net-metering
•  FIT
= self supply (energy saving, loss of yield
for the Government)
= business Stop/Go effects a milestone at
2,5 MW, which passed last summer. FIT
can be closed by tomorrow.
•  1-10 kW turbines = 2,50 DKK/kWh equals to 0,33€
•  10-25 kW turbines = 1,50 Dkk/kWh Equals to 0,20€
•  Reasonable economy – 6 to 10 years pay-back time
Installed Wind Power to the Danish grid
The updated numbers (March 18th. 2015, from Energinet.dk) o  Total 4.690 pcs total 4.900 MW of which: o  Small Wind Turbines (up to 25 kW): o  Total 1.036 pcs total 8,5 MW of which: •  New FIT: ≤10 kW 153 pcs total ~1,3 MW ≤ 25 kW 98 pcs total ~2,2 MW •  The 2,5 MW has been exceeded. July 1st 2015 is next milestone. • 
FIT un7l end of 2016, if scheme has not been closed. EU requirement. Changed opera7onal condi7ons Ø  Due to changed opera7onal condi7ons, due to turbulent winds we have unfortunately seen serious incidents and breakdowns during the past two years. Ø  Two brands are taken out of the list of approved small wind turbines, and these companies are now working on enforcing and improving their windturbines. Ø  None of the Danish brands are among, but Danish manufacturer have reinforced parts of their turbines. The initial Market Potential
Denmark:
With small windmills installed at 10 % of the 150.000
homes in the open land the Danish market potential is
15.000 small windmills.
PRESENT v Red government cancelled the successful and un-­‐
bureaucra7c net-­‐metering. Introduced Feed-­‐In-­‐Tariffs for all SWT up to 25kW. FIT for maximum 2,5 MW SWT. v With no framework, since Nov. 19th 2012 all sales has been on stand-­‐s7ll. New legisla7on was prepared since but delayed by disputes between Danish government and EU Commisssion. New start-­‐up February 2015. v Electrical hea7ng (Heatpumps) is subsidiced with 40% deduc7on for electricity consump7on exceeding 4.000kWh/Y for each household; is in favour the centralized energy suppliers. This solu7on leads to further centralisa7on, and discriminate decentralized small wind, sun and biomass technologies. ? FUTURE q Denmark seems to prefer centralized solutions
instead of decentralized solutions.
q Strong influence from power utilities they have
muscles to lobby against self-supply.
q New umbrella organization covering all decentralized
renewable energy forms, will fight against further market
obstrucion.
q Home market (incl. EU) continuity is vitally important
for export to the developing countries and other parts of
the world.
Contact address:
DANISH SMALL WIND TURBINE ASSOCIATION
CHAIRMAN: MORTEN VICTOR PETERSEN
[email protected]