The Government will make Danish society future proof by establishing a green growth economy and by converting to an energy and transport system based 100 per cent on renewable energy by 2050,” reads the opening remarks of the Danish Government’s Our Future Energy plan, released in late 2011.

Denmark is a country whose Government has a serious long-term vision for renewables. It’s also a country with a stable policy environment – where a change in government doesn’t mean a change in energy policy.

The plan continues: “Concentrated focus on energy efficiency and comprehensive conversion of the energy sector is possible, without ruining the economy. It is entirely possible technologically.”

Indeed, Denmark has already shown that through persistent and active energy policy and a focus on enhanced energy efficiency, it is possible to sustain high economic growth while reducing use of fossil fuels.

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Since 1980, the Danish economy has grown by nearly 80 per cent, while energy consumption has remained more or less constant, and CO2 emissions have been reduced.

The development and integration of wind energy into the grid has been one of the country’s key pillars to these achievements.

A world leader in wind power integration

The high penetration of wind power in Denmark requires careful balancing of the country’s energy system.

The system is balanced through:

  • Trading power on a liberalised electricity market
  • Importing and exporting power from neighbouring countries
  • Flexible and decentralised power production.

According to Anders Mika Dalegaard from the Danish Wind Industry Association, Denmark’s goal of 50 per cent wind power by 2020 means that the regulation of the energy system will become increasingly important.

Smart grids, and improvements to transmission grid infrastructure, will play a central role.

Electric vehicles (EV) will also play a part, though Mr Dalegaard stresses that EVs will be a means of regulation, rather than storage.

“Rather than a question of storage, this is much more about intelligent management, so that you have the ability to control consumption and production.”

Engaging the community

While Denmark’s mature wind industry enjoys strong support from the community and government, it has – like Australia – encountered individuals who say ‘not in my backyard.’

But as Mr Dalegaard points out, “Apparently it makes it easier to look at a turbine if you know that you’re making money from it.”

Three measures have been put in place to ensure that wind power is supported by the Danish population:

  • Wind developers in Denmark must offer 20 per cent of the project’s shares to community members
  • A community fund must be established by the project developer to provide funding for projects that will benefit the local community
  • Nearby residents to a wind farm are given the opportunity to apply for compensation for loss of property value.

Mr Dalegaard explains that many within the wind industry would like to see this last measure dropped, pointing to the uncertainty it creates for project developers; and the dangers such a policy would create if introduced to a larger market such as the United States, China or India.

Legislation, taxes and incentives

Denmark is among the countries where green taxes constitute the greatest share of the gross domestic product – taxes that affect company and consumer behaviour. This has given Denmark immense experience in designing green taxes and incentives promoting renewable energy.

This article draws on statistics and information presented in reports: Wind power to combat climate change, by Energinet.dk; and The Danish Example, by the Danish Ministry of Climate and Energy; and presentations by the Danish Wind Energy Association.