IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v107y2017icp573-584.html
   My bibliography  Save this article

Incentives and barriers for wind power expansion and system integration in Denmark

Author

Listed:
  • Hvelplund, Frede
  • Østergaard, Poul Alberg
  • Meyer, Niels I.

Abstract

In Denmark expansion of on-shore, near-shore and off-shore wind power is planned to increase the wind power share to 50% of electricity consumption by 2020. In this situation a continuation of past policies will not suffice, and a dual-track incentive system that both establishes incentives for investing in wind power and integration infrastructure with integration between the electricity, heating and transportation sectors, is required. The current Danish taxation system discourages electricity use and works against this integration. Likewise, the current day-ahead electricity spot market is not appropriate for a high-wind future as wind reduces price levels, but integration across sectors can partly assist in increasing demand and prices. The European Emission Trading System does not suffice in providing a level playing field for wind power and thus needs a revision. Another barrier for on-shore and near-shore wind power expansion is a growing citizens’ resistance due to an unequal distribution of benefits and burdens. Ownership should be open for more types of investors – especially local investors – in order to ensure public support and local acceptance of wind power projects. The Danish political system needs to address these issues in order to promote further expansion of wind power in Denmark.

Suggested Citation

  • Hvelplund, Frede & Østergaard, Poul Alberg & Meyer, Niels I., 2017. "Incentives and barriers for wind power expansion and system integration in Denmark," Energy Policy, Elsevier, vol. 107(C), pages 573-584.
    • Handle: RePEc:eee:enepol:v:107:y:2017:i:c:p:573-584
    DOI: 10.1016/j.enpol.2017.05.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517302938
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.05.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Connolly, D. & Lund, H. & Mathiesen, B.V., 2016. "Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1634-1653.
    2. Anshelm, Jonas & Simon, Haikola, 2016. "Power production and environmental opinions – Environmentally motivated resistance to wind power in Sweden," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1545-1555.
    3. Nielsen, Maria Grønnegaard & Morales, Juan Miguel & Zugno, Marco & Pedersen, Thomas Engberg & Madsen, Henrik, 2016. "Economic valuation of heat pumps and electric boilers in the Danish energy system," Applied Energy, Elsevier, vol. 167(C), pages 189-200.
    4. Rasmussen, Morten Grud & Andresen, Gorm Bruun & Greiner, Martin, 2012. "Storage and balancing synergies in a fully or highly renewable pan-European power system," Energy Policy, Elsevier, vol. 51(C), pages 642-651.
    5. Kwon, Pil Seok & Østergaard, Poul Alberg, 2013. "Priority order in using biomass resources – Energy systems analyses of future scenarios for Denmark," Energy, Elsevier, vol. 63(C), pages 86-94.
    6. Chittum, Anna & Østergaard, Poul Alberg, 2014. "How Danish communal heat planning empowers municipalities and benefits individual consumers," Energy Policy, Elsevier, vol. 74(C), pages 465-474.
    7. Parajuli, Ranjan, 2012. "Looking into the Danish energy system: Lesson to be learned by other communities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2191-2199.
    8. Lund, Henrik & Kempton, Willett, 2008. "Integration of renewable energy into the transport and electricity sectors through V2G," Energy Policy, Elsevier, vol. 36(9), pages 3578-3587, September.
    9. Connolly, D. & Mathiesen, B.V. & Ridjan, I., 2014. "A comparison between renewable transport fuels that can supplement or replace biofuels in a 100% renewable energy system," Energy, Elsevier, vol. 73(C), pages 110-125.
    10. Sovacool, Benjamin K. & Lakshmi Ratan, Pushkala, 2012. "Conceptualizing the acceptance of wind and solar electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5268-5279.
    11. Kwon, Pil Seok & Østergaard, Poul, 2014. "Assessment and evaluation of flexible demand in a Danish future energy scenario," Applied Energy, Elsevier, vol. 134(C), pages 309-320.
    12. Blarke, Morten B. & Jenkins, Bryan M., 2013. "SuperGrid or SmartGrid: Competing strategies for large-scale integration of intermittent renewables?," Energy Policy, Elsevier, vol. 58(C), pages 381-390.
    13. Lund, Henrik & Andersen, Anders N. & Østergaard, Poul Alberg & Mathiesen, Brian Vad & Connolly, David, 2012. "From electricity smart grids to smart energy systems – A market operation based approach and understanding," Energy, Elsevier, vol. 42(1), pages 96-102.
    14. Becker, S. & Rodriguez, R.A. & Andresen, G.B. & Schramm, S. & Greiner, M., 2014. "Transmission grid extensions during the build-up of a fully renewable pan-European electricity supply," Energy, Elsevier, vol. 64(C), pages 404-418.
    15. Andresen, Gorm B. & Rodriguez, Rolando A. & Becker, Sarah & Greiner, Martin, 2014. "The potential for arbitrage of wind and solar surplus power in Denmark," Energy, Elsevier, vol. 76(C), pages 49-58.
    16. Lund, Henrik & Werner, Sven & Wiltshire, Robin & Svendsen, Svend & Thorsen, Jan Eric & Hvelplund, Frede & Mathiesen, Brian Vad, 2014. "4th Generation District Heating (4GDH)," Energy, Elsevier, vol. 68(C), pages 1-11.
    17. Hedegaard, Karsten & Balyk, Olexandr, 2013. "Energy system investment model incorporating heat pumps with thermal storage in buildings and buffer tanks," Energy, Elsevier, vol. 63(C), pages 356-365.
    18. Kwon, Pil Seok & Østergaard, Poul Alberg, 2012. "Comparison of future energy scenarios for Denmark: IDA 2050, CEESA (Coherent Energy and Environmental System Analysis), and Climate Commission 2050," Energy, Elsevier, vol. 46(1), pages 275-282.
    19. Sperling, Karl & Hvelplund, Frede & Mathiesen, Brian Vad, 2011. "Centralisation and decentralisation in strategic municipal energy planning in Denmark," Energy Policy, Elsevier, vol. 39(3), pages 1338-1351, March.
    20. Ridjan, Iva & Mathiesen, Brian Vad & Connolly, David & Duić, Neven, 2013. "The feasibility of synthetic fuels in renewable energy systems," Energy, Elsevier, vol. 57(C), pages 76-84.
    21. Nielsen, Steffen & Sorknæs, Peter & Østergaard, Poul Alberg, 2011. "Electricity market auction settings in a future Danish electricity system with a high penetration of renewable energy sources – A comparison of marginal pricing and pay-as-bid," Energy, Elsevier, vol. 36(7), pages 4434-4444.
    22. Salgi, Georges & Lund, Henrik, 2008. "System behaviour of compressed-air energy-storage in Denmark with a high penetration of renewable energy sources," Applied Energy, Elsevier, vol. 85(4), pages 182-189, April.
    23. Mathiesen, Brian Vad & Lund, Henrik & Connolly, David, 2012. "Limiting biomass consumption for heating in 100% renewable energy systems," Energy, Elsevier, vol. 48(1), pages 160-168.
    24. Alberg Østergaard, Poul & Mathiesen, Brian Vad & Möller, Bernd & Lund, Henrik, 2010. "A renewable energy scenario for Aalborg Municipality based on low-temperature geothermal heat, wind power and biomass," Energy, Elsevier, vol. 35(12), pages 4892-4901.
    25. Mathiesen, B.V. & Lund, H. & Connolly, D. & Wenzel, H. & Østergaard, P.A. & Möller, B. & Nielsen, S. & Ridjan, I. & Karnøe, P. & Sperling, K. & Hvelplund, F.K., 2015. "Smart Energy Systems for coherent 100% renewable energy and transport solutions," Applied Energy, Elsevier, vol. 145(C), pages 139-154.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    2. Annukka Berg & Jani Lukkarinen & Kimmo Ollikka, 2020. "‘Sticky’ Policies—Three Country Cases on Long-Term Commitment and Rooting of RE Policy Goals," Energies, MDPI, vol. 13(6), pages 1-14, March.
    3. Chinmoy, Lakshmi & Iniyan, S. & Goic, Ranko, 2019. "Modeling wind power investments, policies and social benefits for deregulated electricity market – A review," Applied Energy, Elsevier, vol. 242(C), pages 364-377.
    4. Côté, Elizabeth & Đukan, Mak & Pons-Seres de Brauwer, Cristian & Wüstenhagen, Rolf, 2022. "The price of actor diversity: Measuring project developers’ willingness to accept risks in renewable energy auctions," Energy Policy, Elsevier, vol. 163(C).
    5. Djørup, Søren & Thellufsen, Jakob Zinck & Sorknæs, Peter, 2018. "The electricity market in a renewable energy system," Energy, Elsevier, vol. 162(C), pages 148-157.
    6. Hvelplund, Frede & Djørup, Søren, 2019. "Consumer ownership, natural monopolies and transition to 100% renewable energy systems," Energy, Elsevier, vol. 181(C), pages 440-449.
    7. Lund, Henrik & Østergaard, Poul Alberg & Chang, Miguel & Werner, Sven & Svendsen, Svend & Sorknæs, Peter & Thorsen, Jan Eric & Hvelplund, Frede & Mortensen, Bent Ole Gram & Mathiesen, Brian Vad & Boje, 2018. "The status of 4th generation district heating: Research and results," Energy, Elsevier, vol. 164(C), pages 147-159.
    8. Englmair, Gerald & Moser, Christoph & Schranzhofer, Hermann & Fan, Jianhua & Furbo, Simon, 2019. "A solar combi-system utilizing stable supercooling of sodium acetate trihydrate for heat storage: Numerical performance investigation," Applied Energy, Elsevier, vol. 242(C), pages 1108-1120.
    9. Leire Gorroño-Albizu, 2020. "The Benefits of Local Cross-Sector Consumer Ownership Models for the Transition to a Renewable Smart Energy System in Denmark. An Exploratory Study," Energies, MDPI, vol. 13(6), pages 1-23, March.
    10. Østergaard, Poul Alberg & Andersen, Anders N., 2023. "Optimal heat storage in district energy plants with heat pumps and electrolysers," Energy, Elsevier, vol. 275(C).
    11. Armagan Canan, 2023. "Offshore wind energy policy paths: A comparative analysis of Denmark and Germany," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2023(1), pages 35-59.
    12. Johansen, Katinka, 2021. "Blowing in the wind: A brief history of wind energy and wind power technologies in Denmark," Energy Policy, Elsevier, vol. 152(C).
    13. Copena, Damián & Simón, Xavier, 2018. "Wind farms and payments to landowners: Opportunities for rural development for the case of Galicia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 38-47.
    14. Hvelplund, Frede & Krog, Louise & Nielsen, Steffen & Terkelsen, Elsebeth & Madsen, Kristian Brun, 2019. "Policy paradigms for optimal residential heat savings in a transition to 100% renewable energy systems," Energy Policy, Elsevier, vol. 134(C).
    15. Østergaard, Poul Alberg & Andersen, Anders N. & Sorknæs, Peter, 2022. "The business-economic energy system modelling tool energyPRO," Energy, Elsevier, vol. 257(C).
    16. August Wierling & Valeria Jana Schwanitz & Jan Pedro Zeiß & Celine Bout & Chiara Candelise & Winston Gilcrease & Jay Sterling Gregg, 2018. "Statistical Evidence on the Role of Energy Cooperatives for the Energy Transition in European Countries," Sustainability, MDPI, vol. 10(9), pages 1-25, September.
    17. Johansen, Katinka, 2019. "Local support for renewable energy technologies? Attitudes towards local near-shore wind farms among second home owners and permanent area residents on the Danish coast," Energy Policy, Elsevier, vol. 132(C), pages 691-701.
    18. Cai, Hanmin & You, Shi & Wang, Jiawei & Bindner, Henrik W. & Klyapovskiy, Sergey, 2018. "Technical assessment of electric heat boosters in low-temperature district heating based on combined heat and power analysis," Energy, Elsevier, vol. 150(C), pages 938-949.
    19. Leer Jørgensen, Marie & Anker, Helle Tegner & Lassen, Jesper, 2020. "Distributive fairness and local acceptance of wind turbines: The role of compensation schemes," Energy Policy, Elsevier, vol. 138(C).
    20. Østergaard, Poul Alberg & Andersen, Anders N., 2018. "Economic feasibility of booster heat pumps in heat pump-based district heating systems," Energy, Elsevier, vol. 155(C), pages 921-929.
    21. Møller Sneum, Daniel, 2021. "Barriers to flexibility in the district energy-electricity system interface – A taxonomy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    22. Marcin Bukowski & Janusz Majewski & Agnieszka Sobolewska, 2023. "The Environmental Impact of Changes in the Structure of Electricity Sources in Europe," Energies, MDPI, vol. 16(1), pages 1-22, January.
    23. Sneum, Daniel Møller & González, Mario Garzón & Gea-Bermúdez, Juan, 2021. "Increased heat-electricity sector coupling by constraining biomass use?," Energy, Elsevier, vol. 222(C).
    24. Binh Do & Thai Tran & Ninh Nguyen, 2021. "Renewable Energy Integration in Vietnam’s Power System: Generation Adequacy Assessment and Strategic Implications," Energies, MDPI, vol. 14(12), pages 1-21, June.
    25. Lund, Henrik & Duic, Neven & Østergaard, Poul Alberg & Mathiesen, Brian Vad, 2018. "Future district heating systems and technologies: On the role of smart energy systems and 4th generation district heating," Energy, Elsevier, vol. 165(PA), pages 614-619.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    2. Mathiesen, B.V. & Lund, H. & Connolly, D. & Wenzel, H. & Østergaard, P.A. & Möller, B. & Nielsen, S. & Ridjan, I. & Karnøe, P. & Sperling, K. & Hvelplund, F.K., 2015. "Smart Energy Systems for coherent 100% renewable energy and transport solutions," Applied Energy, Elsevier, vol. 145(C), pages 139-154.
    3. Østergaard, Poul Alberg & Andersen, Anders N., 2016. "Booster heat pumps and central heat pumps in district heating," Applied Energy, Elsevier, vol. 184(C), pages 1374-1388.
    4. Connolly, D. & Lund, H. & Mathiesen, B.V., 2016. "Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1634-1653.
    5. Hansen, Kenneth & Breyer, Christian & Lund, Henrik, 2019. "Status and perspectives on 100% renewable energy systems," Energy, Elsevier, vol. 175(C), pages 471-480.
    6. Sperling, K. & Arler, F., 2020. "Local government innovation in the energy sector: A study of key actors’ strategies and arguments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).
    7. David Maya-Drysdale & Louise Krog Jensen & Brian Vad Mathiesen, 2020. "Energy Vision Strategies for the EU Green New Deal: A Case Study of European Cities," Energies, MDPI, vol. 13(9), pages 1-20, May.
    8. Sveinbjörnsson, Dadi & Ben Amer-Allam, Sara & Hansen, Anders Bavnhøj & Algren, Loui & Pedersen, Allan Schrøder, 2017. "Energy supply modelling of a low-CO2 emitting energy system: Case study of a Danish municipality," Applied Energy, Elsevier, vol. 195(C), pages 922-941.
    9. Lund, Henrik & Østergaard, Poul Alberg & Connolly, David & Mathiesen, Brian Vad, 2017. "Smart energy and smart energy systems," Energy, Elsevier, vol. 137(C), pages 556-565.
    10. Østergaard, Poul Alberg & Andersen, Anders N., 2021. "Variable taxes promoting district heating heat pump flexibility," Energy, Elsevier, vol. 221(C).
    11. Mahbub, Md Shahriar & Cozzini, Marco & Østergaard, Poul Alberg & Alberti, Fabrizio, 2016. "Combining multi-objective evolutionary algorithms and descriptive analytical modelling in energy scenario design," Applied Energy, Elsevier, vol. 164(C), pages 140-151.
    12. Thellufsen, Jakob Zinck & Lund, Henrik, 2017. "Cross-border versus cross-sector interconnectivity in renewable energy systems," Energy, Elsevier, vol. 124(C), pages 492-501.
    13. Bačeković, Ivan & Østergaard, Poul Alberg, 2018. "Local smart energy systems and cross-system integration," Energy, Elsevier, vol. 151(C), pages 812-825.
    14. Ashfaq, Asad & Ianakiev, Anton, 2018. "Cost-minimised design of a highly renewable heating network for fossil-free future," Energy, Elsevier, vol. 152(C), pages 613-626.
    15. Lund, Henrik & Skov, Iva Ridjan & Thellufsen, Jakob Zinck & Sorknæs, Peter & Korberg, Andrei David & Chang, Miguel & Mathiesen, Brian Vad & Kany, Mikkel Strunge, 2022. "The role of sustainable bioenergy in a fully decarbonised society," Renewable Energy, Elsevier, vol. 196(C), pages 195-203.
    16. Vidal-Amaro, Juan José & Østergaard, Poul Alberg & Sheinbaum-Pardo, Claudia, 2015. "Optimal energy mix for transitioning from fossil fuels to renewable energy sources – The case of the Mexican electricity system," Applied Energy, Elsevier, vol. 150(C), pages 80-96.
    17. Nielsen, Steffen & Østergaard, Poul Alberg & Sperling, Karl, 2023. "Renewable energy transition, transmission system impacts and regional development – a mismatch between national planning and local development," Energy, Elsevier, vol. 278(PA).
    18. Brown, T. & Schlachtberger, D. & Kies, A. & Schramm, S. & Greiner, M., 2018. "Synergies of sector coupling and transmission reinforcement in a cost-optimised, highly renewable European energy system," Energy, Elsevier, vol. 160(C), pages 720-739.
    19. Bloess, Andreas & Schill, Wolf-Peter & Zerrahn, Alexander, 2018. "Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 212, pages 1611-1626.
    20. Østergaard, Poul Alberg & Werner, Sven & Dyrelund, Anders & Lund, Henrik & Arabkoohsar, Ahmad & Sorknæs, Peter & Gudmundsson, Oddgeir & Thorsen, Jan Eric & Mathiesen, Brian Vad, 2022. "The four generations of district cooling - A categorization of the development in district cooling from origin to future prospect," Energy, Elsevier, vol. 253(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:107:y:2017:i:c:p:573-584. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.