INTERVIEW - Denmark to scrap subsidies for wind power by 2004
Date: 11-Feb-02
Country: DENMARK
Author: Birgitte Dyrekilde
Installation of wind turbines has depended heavily on subsidies, not only in Denmark, but all over the world.
"I'm of the opinion that Denmark shouldn't continue to subsidise installation of new wind turbines after 2003," Bendtsen said in an interview.
He said electricity from wind turbines was too expensive, denting Danish firms' competitiveness.
By 2003 the current price guarantee agreement expires and by that time green energy is seen accounting for 27 percent of Denmark's electricity need compared to a target of 20 percent.
Danish wind turbine makers have gained from the former government's pro-wind attitude over the past decade and Denmark now hosts some of the world's largest manufacturers, such as Vestas , NEG Micon and Bonus Energy.
Tiny Denmark, which is the world's fourth-largest nation in wind turbine capacity, is planning to build two offshore wind farms in 2002 and 2003 with total capacity of around 300 megawatt. "These plans won't be changed," Bendtsen said.
However, he has scrapped the plans for three more wind farms of 150 megawatt each to be installed by 2008.
FUTURE OFFSHORE PLANS SCRAPPED
The former Social-Democratic led government had a target to meet 50 percent of Denmark's electricity demand by green energy by 2030, boosted by 4,000 megawatt installed offshore.
Denmark's new minister has no such targets. "I'm not against wind turbines, but I think they should compete in a free market, and they can do so in a few years, I believe. We still might prepare licensing rounds for offshore wind parks," he said.
He added electricity from a new power station costs 25 oere per kilowatt hour, while electricity from wind turbines, located at the best sites, are getting still closer to this level.
Denmark was the first country to launch state-run emission trading schemes for the largest Danish power companies.
Other CO2 schemes are being planned worldwide and in the EU as countries look for ways to meet their commitments under the U.N. Kyoto protocol to curb greenhouse gas emission, believed by many scientists to contribute to global warning.
"We are in talks about the CO2 quotes with Danish power stations," the minister said. The schemes run to end-2003.
"We want to reach Denmark's Kyoto target, but we'll start using funds destined for Eastern Europe for joint implementation in these countries instead," Bendtsen said.
By joint implementation, Denmark can bring down emissions in Eastern Europe and in return receive emission credits that can be set against its national target established by the Kyoto protocol.
The 15 EU members are striving for an average eight percent reduction in 1990 green house gas levels by 2010.