Renewable Energy on the Market—a Danish Perspective

Abstract

Danish development of renewables and especially of wind energy has been a political and commercial success story. There has been a consensus on prioritising green energy and in 2003 the goal corresponding to 20 per cent of Danish consumption of electricity was achieved. Moreover, approximately half of all wind energy turbines installed globally are produced by Danish manufacturers. Further developments are foreseen, most of which are expected to come from offshore wind turbines. Long-range planning, along with pricing policies and purchase obligations, have been important tools, combined with tax exemptions and heavy state funding provided for research. As of 1 January 2005, consumers are buying electricity solely on market conditions. Renewable energy will still receive subsidies but these will be granted as a price supplement to the market price.