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30 years of Law for Wind Power:
Developments in Denmark
Anita Rønne
• Faculty of Law, University of Copenhagen
• Member of the Danish Energy Regulatory Authority
• Chair of the Evaluation Committee for Wind Turbines
• Chair of the Danish Energy Law Society
Global change in Environmental, Resources and
Energy Law
University of Waikato, Monday 13 May 2013
Dias 1
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The Danish Point of Departure
 1973-74 oil crisis
120
 2 countries 99% dependent on
imported fuels
• Japan
• Denmark (oil and coal)
100
80
60
40
20
0
1970
'75
'80
'85
'90
'95
Brent, $ pr. tønde
 Severe impact on the Danish
society including economic decline
due to energy dependent growth
model
 The trigger for change
Dias 2
Brent, $ pr. tønde 2011 prisniveau
'00
'05
'10 '12
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Energy Policy & Regulation in Denmark
Until 1973:
Sufficient & cheap oil supplies. Limited awareness on security and environmental
impact of energy consumption and different fuels
• Energy legislation was rare and mainly dealt with safety matter
1970’ies:
Focus on energy security. Public intervention, influence and control
• Adoption of sector acts, Electricity, Heating, Natural Gas
• Subsoil Act already in 1936 but new act in 1981
• Energy plans and strategies 1976 & 1979 -> supply flexibility, indigenous
production; national gas grid, heat planning, from oil to coal in electricity
• Danish Energy Agency 1976, Danish Energy Ministry 1979
1990’ies:
Wave of liberalization - driven by European internal market
• All energy acts amended
After 2000:
Climate Change (but still energy security and liberalization- 3rd package)
Dias 3
- CO2
Quota Act, Act on Renewables, Amendments to existing Acts
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The Result and the Danish Energy Supply situation
In 1997 - Denmark became
self-sufficient in energy
250%
200%
In 2005, the total production
of oil, gas and renewables
was 58 % higher than total
energy consumption.
In 2011 and -> Selfsuffiency for another decade
and then need for import
(some uncertainty)
Dias 4
150%
100%
50%
0%
1980
'85
Total Energy
'90
'95
Oil
'00
'06
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Danish Energy Consumption Covered by:
•
•
•
Domestic oil and natural gas resources
Domestic renewable energy sources
(wind, biogas, waste, straw, woodchips)
Imported coal supplies
 No hydro-power
 No nuclear-power
(Was part of energy planning till 1985, when a political decision
abandoned further development, but some import from Sweden)
Dias 5
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Production now and in the future
•
•
•
•
Production seems to have peaked
None of the oil fields have discontinued -40 years after production
started in the Danish part of the North Sea
New technologies have enabled the oil companies to recover increasing
volumes of oil from the same fields
• water and gas injection
• horizontal drilling
• Injecting CO2 from power stations may prove to be a viable option
Shale gas – a new exploitation target!
• The policy dilemma – ”black in green”
• 2 licences, more have applied but the minister has put them on hold
• 1st exploration well later this year
• Different regulatory needs?
• Change of rules -EIA must be prepared if fracking
• Fracking has been taking place offshore for hydrocarbons
Dias 6
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Policy Developments on changes in the energy
mix – Renewables & Efficiency!!!!
European Union:
20-20-20 by 2020
• 20 % reduction of CO2
emissions
• 20% binding renewable
energy target (including a
10% RE in transport)
• 20% indicative target for
improvement of EE
Dias 7
Denmark:
• The Goverment’s Political Strategy of 2011 &
• Political Agreement between the Government and
the opposition of March 2012
 independence from fossil fuels by 2050
By 2020:
• 35% RES of gross energy consumption
(primarily wind and biomass)
 50% RES of electricity consumption will
come from wind (today 25%)
 30% reduction of fossil fuel consumption
 Energy consumption will decrease by more
than 12% in 2020 compared to 2006.
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Energy Policies of IEA Countries
– Denmark - 2011 Review (Feb. 2012)
• Denmark’s long-term energy goal is to
become completely independent of fossil
fuels use by 2050.
• In 2011, the government published the
Energy Strategy 2050
• a detailed and ambitious policy
document that sets out a series of new
energy-policy initiatives.
”Denmark is a leader
among OECD member
countries in terms of its
well-designed policies for
renewable energy, energy
efficiency and climate
change.”
Dias 8
• A long history of consensusbased policy making
• political stability
• clear long-term vision for low
carbon future
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Types of Renewables in Denmark
Solar, ambient heat
; 1%
Biomass; 10%
Wind pow er; 3%
Organic Waste; 3%
B io mass; 6%
Organic waste; 4%
Dias 9
Wind po wer; 20%
Share of Gross Energy
Consumption:
17 % by 2007
(share doubled in 10 years)
Share of Electricity Supply:
29½ % by 2007
(share tripled in 10 years)
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Renewable energy in Denmark –
current consumption and future potential
Dias 10
Consumption
Potential
av
e
W
la
r
So
in
d
W
as
te
W
ga
s
B
io
oo
d
W
St
ra
w
180
160
140
120
100
PJ/year
80
60
40
20
0
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Wind Power in Denmark
Installed capacity = 3,124 MW (2007). 423 MW is off-shore.
Wind power generates 20% of the power production (2007)
Turned into a business!
The Danish wind turbine industry
employs 28.000 persons and sells
turbines for 7 Billion Euro (2008)
Most of the turbines are exported and
Danish wind turbine industry serves
30% of the world market (2007)
Good timing!
(started before liberalisation)
 Now much more competition
Dias 11
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> 20 Years of Offshore Wind Experience
First Danish offshore wind
farm 1991. Now 423 MW.
2 x 200 MW new wind farms
in 2009 and 2010 and one
400 MW in 2012.
Existing and planned off-shore
capacity (1225 MW) = 12% of
total electricity consumption
in 2012.
Dias 12
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DENMARK
[Population 5,5 mill]
Electricity developments 1985-2009
Decentralisation of production
Dias 13
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Pilot projects - Samsø
Dias 14
Source: Energiakademiet.dk & ens.dk
an island that transitioned from oil
dependency to RES from wind,
solar and biomass.
Samsø’s success inter alia:
- local ownership
- local commitment
- practical action plans based on
proven technology and feasible
Facts: goals
Designated in November 1997
100% RE in 10 years (2007) - > 120%
Area of 114 square kilometres
Population: 4,100 inhabitants (2008)
Business sectors:
1) Agriculture
2) Tourism (½ mill. overnight p.a.)
3) RE projects
• Investment in RE projects: DKK 368 million
21 modern wind turbines
All six towns on Samsø have district heating
65% of Samsø homes receive heating from biomass
(district heating)
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The Bornholm Smart Grid Pilot Project
Key challenges for the grid/infrastructure
• Integration of substantial higher amounts of RES
• Implying more fluctuating energy – wind, solar –
- output varies according to availability of the resource
• Increasing number of smaller production units
• Influencing production & demand - > smart grids
• Consumers information and options for choice of supply.
• Energy storage and linking new sectors like transport in the
form of plug- in and electric cars
 The keyword: FLEXIBILITY
Dias 15
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Key Instruments to promote renewables
 Public support to research & demonstration of REtechnologies
 Investment grants for standardized RE-equipment
 Favourable prices for electricity fed into the public grid
 Obligation to buy and use RES
 Tax incentives
 A suitable legislative and planning framework
 2008 Act on Promotion of Renewable Energy
 Binding planning obligations for municipalities
 Promotion of local ownership
 Agreements between the Government and the opposition and
Government and the utilities
Dias 16
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Wind turbines: Main challenges
 Local resistance on more land turbines
• from land owners and municipalities
 Best sites taken by old turbines
 Grants may be better in other countries
 big companies go abroad
 Lack of test facilities for MEGA- turbines
How to meet these challenges?
Dias 17
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Planning, Information and Public Participation
 Through thorough planning and
identification of suitable sites
 Through involvement in the
decision-making process
(planning participation – EIA)
 Through information about the
project and the ongoing development
 Through economic incentives or financial
involvement in the project (financial participation)
Dias 18
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Continuous Development - New instruments
• Binding planning obligations for municipalities
• In 2010 & 2011 all municipalities have collectively prepared and adopted a
supplement to their municipal plans,
• with areas reserved for a total wind-turbine capacity of 75 MW in each of the
years.
• National testcenter for MEGA-turbines is under construction
• Owned by the Government
• Enforced by law
• 7 sites for turbines up to 250 m/ 20 MW
• Visible 50 km away
• Industry rents the site temporally
• Additional price supplement for scrapping certificates
• Old ineffective turbines on good sites
• Disfigures the landscape
• When taken down you get a scrapping certificate, fully negotiable
Dias 19
• For new turbines you obtain 5-6 cent instead of 4 cent /kWh
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New ways of balancing conflicting interests
1. Green scheme to enhance local scenic and
recreational values
-
reward to the municipalities for planning,
about 25.000 EURO for 1 turbine – site
1. Guarantee fund to support financing of preliminary
investigations by local wind turbine owners’ associations
- State guarantee for loan taken by local groups to investigate for local turbines
3. Offer on 20 % ownership of production facilities
- IF Wind turbines at least 25m in height onshore
- person over 18 years, living < 4.5 km from the site of installation
4. Compensation for losses of property value
Dias 20
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Compensation Scheme
 Any person who, due to the construction of wind
turbines, causes the loss of value to real property,
shall bear the costs
 In addition to EIA process - obligation to hold a
public meeting to explain the consequences for
surrounding real properties
 A Valuation authority shall decide on the size of
the loss of value on the basis of an individual
assessment
• Composed by legal chairman and a real estate agent
Dias 21
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Good or bad measure?
Does it meet controversies in wind energy projects?
↓ ↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓↓ ↑ ↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑
• Extra cost for erecting turbines • Gives incentive to place
turbines, where they causes
• Some uncertainty for the
minimum loss of value
economy when investing
• Helps to overcome local
• Gives wind turbines a bad
resistance as losses are now
reputation on domestic & export compensated
markets
• Makes it easier for the
• Spoils the respect of physical municipalities to reserve land
planning
for turbines
• Could spread to other sectors
(agriculture?)
Dias 22
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Climate Change, Energy, Sustainability and Law
The Danish Transition
- from 100% Oil Imports
- via 100% Indigenous Production
- towards 100% Green Energy
Need for
• political consensus
• proper planning
• consistent legal framework and tools
• public support
• where awareness, ownership
and subsidies are important
Dias 23
Thank you for your
attention!
Anita Rønne
Faculty of Law
University of Copenhagen, Denmark
Email:
[email protected]