White papers for a green transition

WIND ENERGY
MOVING AHEAD
How Denmark utilises wind
in the energy sector

INSIDE THIS WHITE PAPER

Acting the way the industry needs
When dialogue, transparency and flexibility
become more than just words
Denmark to meet 50%
wind energy in 2020
Cross-border electricity market and good
connections to neighbouring markets ensure
first-class security of supply
Making offshore wind attractive
and accessible to investors
Offshore wind projects are politically
and financially attractive investments

WIND ENERGY MOVING AHEAD

How Denmark utilises wind in the energy sector
Version 2.0
Printed October 2015

Front page photo

Cover photo showing Anholt Offshore Wind Farm. Photo: DONG Energy
Editor in Chief
State of Green
Technical Editor
Danish Wind Industry Association

Danish Energy Agency:

Copenhagen Infrastructure Partners:
Danish Energy Association:
Danish Ministry of Energy, Utilities and Climate:
Danish Business Authority:
Danish Wind Industry Association:
Energinet.dk:
Middelgrunden Wind Turbine Cooperative:
Siemens Wind Power:
Vestas Wind Systems:

Contributors
Morten Bk, Peter Sehestedt and Torsten Malmdorf
Christina Grumstrup Srensen and Stephanie Bendorff Rpcke
Lars Aagaard
Lars Christian Lilleholt
Niels Bjrkbom
Jan Hylleberg
Peder stermark Andreasen
Erik Christiansen
Michael Hannibal
Anders Vedel

To order copies of this white paper or receive information about other related
publications, please contact State of Green at info@stateofgreen.com.

Copyright State of Green 2015

Foreword

A FUTURE OF WIND ENERGY

The global market for wind energy is gaining ground as
wind technologies are getting more and more
sophisticated and competitive

Lars Christian Lilleholt

Danish Minister for Energy, Utilities and Climate

With more than 40 years of experience and

a world-class energy sector, Denmark is
uniquely positioned to play a key role in the
future market for wind technology.
Since the oil crisis in the early 1970s Denmark has moved towards a national energy
system that is more and more reliant on
renewable energy sources, with wind energy playing a key role. The global demand
for energy is expected to rise dramatically
in the coming years. Wind energy will undoubtedly be an important part of the solution to this and connected challenges related to climate change and security of supply.
From 2000 to 2013 global installed wind
power capacity increased with an average
growth rate of 25% per year. According to
the IEA wind energy could account for 8%
of the global generation mix in 2040.

Largest share of wind in the world

Denmark has a total installed wind energy
capacity of more than 5,000 MW and on
windy days, wind turbines produce more
than the domestic Danish demand. Furthermore, Denmark is the country in the
world with the largest share of wind integrated in the grid. This means that more
and more countries - developed and developing - are looking towards Denmark for
inspiration and cooperation. We shall continue to use this unique position to generate more sustainable economic growth and
jobs in both Denmark and abroad.
A world class wind energy sector
Danish wind companies belong to the top
league globally. In 2014, the Danish wind
sectors export reached DKK 53.5 bn (EUR
7.1 bn). Almost 17% more than the year be-

fore. Furthermore the wind energy sector

employed more than 28,000 people. Wind
turbines have undergone considerable
technological advances and wind has become one of the most competitive renewable energy systems. This is the result of investments and the work and commitment
of several innovative companies backed by
world leading research and knowledge institutions and unique test facilities.
But global competition is fierce and new
and innovative technologies are gaining
ground. We should therefore ensure good
framework conditions and world class research and innovation facilities so that the
Danish wind energy sector will continue to
be a global front-runner in the future.

ABOUT THIS
WHITE PAPER
In this White Paper we have gathered lessons learned from different Danish
players and legislators within the wind energy sector, supported by state-ofthe-art case examples showing, for instance, how we work with integrating
wind, invest in wind and optimise products to make more energy for less money.
Denmark has decided to lead the transition to a green growth economy and become independent of fossil fuels by 2050. Completely dependent on imported
oil for decades, Denmark was severely affected by the oil crises of the 1970s and
it was decided to take a new path. As a result, renewable energy and in particular wind energy has become a Danish stronghold.
The content of this White Paper is meant to serve as a helpful tool for international stakeholders who wish to get an overview of the Danish way of utilising
wind, who want to spot the potentials of wind energy, or who are looking for
Danish business partners.
Integrating 10, 20, 30, 40 or 50% wind energy or even more in the electricity system is no easy task just as agreeing on the political framework for large investments and getting the citizens on board for new projects is not something easily achievable. But with this White Paper we want to show you that it is feasible
through collaboration.
We hope you will be inspired.

INDEX
Wind is a major part of the solution....................................................................................... 3
There is no status quo in the wind industry....................................................................... 6
Cost reductions and alliances are keywords in the Danish wind industry
Acting the way the industry needs........................................................................................ 8
When dialogue, transparency and flexibility become more than just words
Denmark to meet 50% wind energy target in 2020.....................................................10
A cross-border electricity market and good connections to
neighbouring markets ensure first-class security of supply
Electrification equals value from wind energy............................................................... 12
Why electrification is necessary for the Danish energy system
Bringing the neighbours on board........................................................................................14
A specialised wind turbine task force is assisting
the planning process of onshore wind projects
Do you speak wind turbine?....................................................................................................16
Denmark from above.................................................................................................................. 17
Case studies
The worlds most depicted offshore windfarm is 50% locally owned.................................. 18
Denmark a pioneer in wind energy............................................................................................ 20
sterild test centre ensures Siemens Wind Power a competitive offshore advantage.........22
Advanced nacelle testing integral part of Vestas product development............................... 24
Making offshore wind attractive and accessible to investors................................................ 26
Sustainable wind export business .............................................................................................. 28
Selected examples of danish footprints in offshore wind ..................................................... 30
Denmark - the supplier hub .......................................................................................................... 31

There is no status quo

in the wind industry

Photo: Keenpress / Wind Power Works

There is no status quo

in the wind industry

THERE IS NO STATUS QUO

IN THE WIND INDUSTRY

Cost reductions and alliances are keywords in the Danish wind industry
Companies in the Danish wind industry are at the
very forefront of the global wind expansion, driving the
continuous development of evermore effective and
cost-efficient wind turbines
Jan Hylleberg, CEO, Danish Wind Industry Association

What few people believed 40 years ago is

now a reality with a booming global industry. Over the years, the wind industry has
fine-tuned its ability to harvest energy
from the wind in a controlled manner that
benefits millions and millions of people. The
groundwork for much of the technological
development has taken place in Denmark.
Today, nearly 500 companies work within
the Danish wind energy sector, generating
more than 28,000 jobs including the whole
supply chain (2014) and combined revenue
of DKK 84.4 bn (EUR 11.31 bn) of which
more than 60% is exported.
The Danish wind industry accounts for
5.2% of the total Danish export in 2014;
this is the highest level since 2008-2009.
More energy for less money
Even though the Danish wind industry has
developed into a highly professional and
well-established one, the objective has
remained the same since the beginning. At
the core, all work evolves around reducing
the Levelized Cost of Energy (LCOE) - the
price of the electricity production over the

lifetime of a wind turbine. The wind industry has come far and the technology holds
huge potential for becoming even cheaper.
While the price of wind energy continues
to decline, investments are going up. Proof
of this is found in Europe, where wind energy was the favoured energy technology
in 2014, with a grid connected wind energy
supply more than double that of coal and
gas combined.
Danish companies are driving the development of a lower LCOE. Strong cross-industry cooperation along with unique testing
facilities are creating the foundation for
an innovation hub found nowhere else in
the global wind industry. Today, energy
from onshore wind turbines is cheaper
than energy from new fossil energy plants
in many markets, including Denmark, and
across the industry efforts are put into
reducing the cost of offshore wind in a
similar manner. Producing energy offshore
requires a new way of thinking and this
has led to a new way of organising the industry in Denmark.

Alliances are vital

Abandoning the idea of wind turbine manufacturers dealing with all of their sub-suppliers, the industry is now moving towards
organising in clusters offering concentrated and packaged solutions. This entails an
even closer collaboration between Danish
wind turbine manufacturers and clustered
sub-suppliers, enhancing manoeuvrability
and the ability to innovate. This development is evidence of the continuous professionalisation of the Danish wind industry
that acts as a strong competitive advantage - only to be developed further in the
coming years.
With wind energy having one of the greatest potentials for integrating more renewable energy across the world, it is unthinkable
for the Danish wind industry just to maintain
the status quo. The wind industry is facing
before yet another era of progress that will
benefit not only job creation and energy security, but also people and climate.

Acting the way the industry needs

The industry-friendly Danish tender approach for setting up offshore windfarms is a result of many adaptations
over time. It consists of three parts:

A strategic offshore planning process with transparent tender procedures

A guaranteed timely establishment of grid connection
A fixed settlement price and the one-stop-shop permitting procedure

Photo: Danish Energy Agency

Acting the way the industry needs

ACTING THE WAY

THE INDUSTRY NEEDS

When dialogue, transparency and flexibility

become more than just words

On the path to becoming a nation independent of fossil fuels

with large amounts of wind energy in the electricity grid, having
the right political framework plays a major role. Denmark leads
the way in making political decisions that the industry needs.
But how did we get to this point, and what are the big challenges
that still remain?
Peter Sehestedt, Special Advisor, Danish Energy Agency

Denmark has set ambitious political targets for the use of wind energy. In 2010,
the Danish Commission on Climate Change
Policy presented its recommendations for
the total phasing out of fossil fuels.
Set in place in 2012, the current energy
agreement includes a target of applying
1,900 MW of new capacity from onshore
and offshore wind. By the end of 2021, this
capacity needs to be realised. As a result,
wind energy is expected to cover 50% of
Danish electricity consumption in 2020.
The agreement secures a substantial expansion of the Danish wind energy capacity offshore, near-shore and onshore. The
offshore expansion alone corresponds to
the annual electricity consumption of 1.4
million average Danish households. The
first step to establish more offshore wind
farms is a strong and smooth planning
phase, which reflects the importance of
flexibility in the tendering processes, just
as the ability to conduct dialogue with
the market and to learn from experience
is paramount for success. Only then can
the authorities attract the most competitive bids for these complex projects which
carry large economic commitments and
which are influenced by political currents.
Tenders that work
The Danish Energy Agency has strived to
develop a scheme that delivers on these
parameters. As such, the Danish tendering approach for setting up offshore wind
farms is the result of many adaptations
over time. In fact, Denmark has the longest
experience with tenders for offshore wind

energy in the world. The strength of the

Danish approach can be divided into three
areas. Firstly, a strategic offshore planning
process with transparent tender procedures and fully consented environmental
impact assessments in place before the
submission of tenders. Secondly, a timely
establishment of grid connection guaranteed by the Danish state and paid for by the
electricity consumers. Thirdly, a fixed settlement price and a unique one-stop-shop
permitting process, in which the Danish Energy Agency grants all the required permits
and coordinates with other relevant public
authorities.
Dialogue as a new Danish trademark
In the offshore market change is a constant
and each tender is different from the next.

What we have learned is that the tendering

authorities need to speed up on their learning capacity. If we want to ensure the best
possible market prices and projects in our
tendering procedures, we have to be part
of the changes more or less at the same
time as they happen.
This is why dialogue has become the new
trademark of the Danish tendering procedures and why the Danish Energy Agency
is promoting a vision where authorities and
industry act like equal partners.Our goal is
to share this vision with all major offshore
countries and we invite all tendering authorities in Europe to start a dialogue of
their own. Ultimately, this dialogue has the
potential to create a new network of governance and help establish a common vision of offshore tendering in the European
market.

One-stop-shop means full speed ahead

The Danish tendering process is unique,
and the one-stop-shop permitting procedure plays a central role in this. To ensure
a rapid and as-little-as-possible bureaucratic application process, the Danish Energy Agency grants all the required permits
and coordinates with other relevant public
authorities. This results in a single point of
access for enterprises or industry in need of
assistance on issues related to permits and
tendering procedures and this is one of
the political framework conditions leading
Denmark towards a future as independent
of fossil fuels.

10

Denmark to meet 50% wind energy in 2020

Photo: Palle Peter Skov

Map of Denmarks transmission grid and interconnectors

Denmarks transmission grid (400 and 150/132 kV) and the interconnectors to Germany, Sweden and Norway. Interconnectors
have a total capacity of more than 5,500 MW.
The transmission grid is designed to handle long fluctuations and
transport electricity over large distances, e.g. from on- and offshore wind farms in the west to the Danish capital in the east. Denmark often acts as a transit country, enabling power from Norways
hydroelectric dams to be sent to Germany and Central European
consumers or the other way around, if wind turbines and solar cells
generate energy that Norway wants to buy.

Denmark to meet 50% wind energy in 2020

11

DENMARK TO MEET 50%

WIND ENERGY IN 2020

A cross-border electricity market and good connections to

neighbouring markets ensure first-class security of supply
We are in the process of transitioning from an energy system where generation is
adapted to consumption to one where consumption is adapted to generation
Peder stermark Andreasen, CEO, Energinet.dk, the Danish TSO responsible for supplying Denmark with electricity and natural gas

It cant be done. Its not possible to integrate more than a few per cent wind energy
in an electricity system. These are words
we sometimes hear when foreign visitors
visit Energinet.dk. However, when we open
the door to our control room and show them
that we on any given day have 20, 30, 40%
wind energy or more in our electricity system, we are not presenting them with a
theoretical calculation or a case story. What
they see is a quiet control room without
panic and the electricity system that supplies Danish households and businesses
with electricity which has one of the highest levels of security of supply in Europe.
This is possible because Denmark has a
well-developed electricity grid and strong
connections to our neighbouring countries
Norway, Sweden and Germany (see map).
50% wind in 2020 and more to come
We are making good progress to meet the
objective that wind energy will cover 50%
of the Danish electricity consumption. In
2014, the figure was 39.1%, and with the
wind energy generated by future offshore
wind farms in particular, we will reach the
equivalent of 50% wind energy in electricity consumption.
Denmark does not have mountains, rivers
or many hours of sunshine, but we have
wind and a unique location. Wind energy
is one of Denmarks most remarkable renewable energy sources and it will become
even more important after 2020. Looking

towards 2035, for example, there will be

many more days where wind energy generation will exceed our consumption.
From generation to consumption
We are transitioning from an energy system
where generation is adapted to consumption to one where consumption is adapted
to generation. That is why electricity must
be able to flow far, across borders and in
large quantities. The prices must reflect the
fact that there are days with ample generation or high demand, and electricity must
increasingly be integrated into flexible consumption, such as heat pumps and electric
vehicles. Only by taking a cross-border approach and ensuring maximum utilisation
of domestic flexibility will we be able to
secure an effective and successful energy
transition.
New interconnectors
To be able to handle this, we have joined
forces with TenneT, TSO for power and gas
in Netherlands and Germany, to build a 700
MW and 320 kilometre submarine cable
linking the Dutch and Danish electricity
systems - and together with the National
Grid, TSO for power and gas in England, we
are looking into the possibilities of laying a
600 kilometre cable to the UK.

Central Europe. Even though we as consumers do not notice the changes, we buy and
sell electricity across borders hour by hour.
Electricity generated by wind, water, sun,
coal, gas and nuclear power flows freely back
and forth depending on supply and demand.
But the future requires even more open
ness and cross-border thinking. A well-functioning market is crucial if Denmark and the
rest of Europe are to maintain a high level of
security of supply.
New market model
With increasing amounts of renewable energy, the current business model for electricity is put under pressure, where especially conventional generators based on
fossil energy sources are challenged. In the
long term this creates a risk of insufficient
capacity during future periods with limited
renewable energy available, e.g. during periods without wind.
We have therefore invited industry players
to a sector-wide cooperation with the aim
of developing a new market model that will
help ensure a high level of security of supply and contribute to a healthy investment
climate in the energy sector, and furthermore encourage interaction and flexibility
across the value chain.

Today, Denmark is part of a cross-border

Nordic market, and we are integrated with

2035

2013

Wind production and power

consumption 2013-2035
Today, wind rarely exceeds the total power
consumption. In the future this will happen
more often. Here shown in three weeks in
2013 and three weeks in 2035.

Week 1

Week 2

Electricity consumption

Week 3

Week 1

Week 2

Week 3

Electricity generation from wind turbines

12

Electrification equals value from wind energy

Flexible production requires flexible consumption and a

strong underlying system
Clean electricity from wind turbines can be used to substitute
CO2-emitting energy consumption in the heating sector, in industry
and in households. This benefits the environment and the climate
but in order to reap the full value of wind energy, we need to focus
on a better utilisation of it.
Integrating large volumes of wind energy into the energy system
has proven possible, but wind is dependent on a strong back-up
system and good market conditions for selling electricity via interconnectors and flexible electricity usage.

Electrification equals value from wind energy

13

ELECTRIFICATION EQUALS
VALUE FROM WIND ENERGY

Why electrification is necessary for the Danish energy system

Danish electricity generation will consist of at least 50% wind
energy in 2020. This requires a focus on electrification and
Denmark needs to address the challenge of smart energy
Lars Aagaard, CEO, Danish Energy Association

Danish electricity generation has undergone significant changes during the last
two decades and Denmark is on the cutting
edge when it comes to integrating wind energy into the electricity system.
Wind is a positive story already
20 years ago the Danish electricity production consisted of 96% fossil fuels, which
emitted 30 million tons of CO2. In 2013,
these numbers had changed to 54% fossil
fuels, resulting in a 55% decrease of the
CO2-emissions.
So far, the increasing wind share has not
changed the continuity of supply. In 2013,
Danish electricity consumers had electricity in their power outlets 99,997% of the
time.
The potential for electrification
Even though we use most of the electricity
from wind in households, industry, for electrical cars and in heat pumps in the heating
sector, the transformation of the electricity system moves much faster than the
electrification of the energy consumption.
The electricity consumption is expected to
grow by 3 TWh until 2020, while the new
wind production is expected to grow by 6.5
TWh.

Obviously, wind energy is a fluctuating production form. Given the rapid build-out it
needs to be accompanied by further incentives to use and store the electricity when it
is produced and a strong backbone of flexible power generation is also required.
The curves in the figure illustrating development of electricity consumption and wind
energy production 2014-2020 clearly show
that the expected expansion of wind production exceeds the changes in electricity
consumption. There is a clear mismatch between the growth of the two, which given
the flexible nature of wind energy needs
to be addressed, if we are to make the most
value of our wind energy production.
The Danish Energy Association has calculated the technical potential of electrifying
the end consumption in the district heating
sector, the individual heating sector and in
the industry. The potential comes out at
approximately 13 TWh/year, which is more
than a third of the current Danish electricity
consumption. In other words, there is a potential for utilising all new wind production
in a flexible manner, creating more value for
the Danish wind model.

Combined with strong, available interconnectors to neighbouring countries, a backbone of power generation plants and a fast
development in bringing down costs for
electricity storage, we are confident that
we can continue the wind expansion and
use the fluctuating production in an intelligent way.
In order for that to happen we need to see
Danish legislators consider and decide upon
difficult political issues such as securing
continued back-up capacity from power
plants, an intensified electrification of the
Danish energy system and constraints on
interconnectors.
Denmark has led the way and will continue
to do so by showing the world that it will be
possible to introduce more than 50% wind
energy into the electricity system. But we
need to take the necessary measures to
guarantee the continued balance of the
electricity supply and to create maximum
value of the winds changing production
levels.
Keywords for that to happen are interconnectors, flexible electricity use and reliable
backup production when wind is absent.

Development of electricity consumption and wind energy production 2014-2020

160
140
Source: Danish Energy Agency

120
Index 2014 = 100

100
80
60
40
Electricity consumption (index)

Wind energy production (index)

20
0

2014

2015

2016

2017

2018

2019

2020

Development of electricity consumption and wind energy production

2014-2020
Wind energy produced 3% of the electricity consumption in 1994. In 2014, this number had increased to 39.1% and by 2020 at
least half of the electricity consumption
will be delivered by wind turbines. The general electricity consumption is expected to
grow at a much slower rate.

14

Bringing the neighbours on board

www.vindinfo.dk a Danish shortcut

In 2012, a national committee issued recommendations for what to focus on in order
to optimise the planning processes for wind project developments. A central point was
improved public access to information. In response to this, four agencies have gathered
all available governmental information about wind energy in Denmark on one website:
www.vindfo.dk. This way, citizens, local authorities, and wind project developers have
easy access to information.

The introduction of task forces

The Danish Wind Turbine Task Force is a new concept within the Danish public administration. Free of charge, the task force assists local
authorities in matters such as siting the turbines and the planning process. Public acceptance is the key to deflect the problems that can
occur when planning new onshore wind farms.
Photo: Lia Maria Hauch Kaufmann

Bringing the neighbours on board

15

BRINGING THE NEIGHBOURS

ON BOARD

A specialised wind turbine task force is assisting

the planning process of onshore wind projects

Schemes focused on citizens and close municipal and state collaboration regarding citizen
involvement are just some of the approaches that Denmark takes in order to meet its ambitious
targets for CO2-reduction and the advancement of more renewable energy
Niels Bjrkbom, Head of the Wind Turbine Task Force, Danish Business Authority

The 1970s energy crises in Denmark and the

rest of Europe sparked an increased interest in
renewable energy. During the 1970s, the first
wind turbines, less than 50 meters tall, were
installed all over the country through local initiatives with no general planning and often
through citizen initiated wind turbine cooperatives. Today, onshore wind turbines as high as
150 meters are installed on a commercial scale,
which requires larger areas and substantial investments. These kinds of wind turbines are
often erected and owned by people living far
from the wind turbine areas and that is one of
the reasons why it has become increasingly
difficult to achieve local acceptance of wind
energy projects.
A complicated process
In Denmark, local authorities are responsible
for planning onshore wind turbine installations, and the planning processes are often
long and complicated. In some municipalities,
local politicians stop the planning activities at
relatively late stages, due to local public opposition against installing wind farms in the
specific area. This is a problem, firstly, because
it often results in frustration and local division
Step 1
Invite stakeholders

Step 2
Establish workshops

between opponents and supporters of wind

energy. Secondly, because one of the paths
to becoming free of fossil fuels, as written in
the political energy agreement from 2012, is
by installing 1,800 MW of new onshore wind
capacity before 2020 - 1,300 MW of which are
expected to replace existing, aging wind turbines.
Wind Turbine Task Force and state
assistance
In order to assist local authorities with these
challenges, a Wind Turbine Task Force was established in 2008. Furthermore, four financial
incentive schemes were introduced a year later. These initiatives both aim to increase local
interest in and support for the installation of
new, modern wind turbines. An important role
of the task force is to solve problems as early
as possible and assist the local authorities with
the planning process.
Citizen involvement takes up an increasingly larger part of the planning process. It is our
experience that a good relationship between
citizens and the municipality is a crucial aspect
in achieving acceptance of new wind turbine
Step 3
Network meetings

Step 4
Network activies and results

Network
topics

Citizens

Network meetings

Network meetings

Secreterial
function

Visiting wind turbine sites,

enhancing dialogue

Secreterial
function
Input on decision on
wind turbine plant

Business community

Authorities

Source: Antropologerne

Network meetings

Secreterial
function

Network meetings

Secreterial
function

Growth potential for

community development

projects. Interviews show that many Danish

citizens are unhappy with the way planning
activities have been carried out previously.
Therefore, we have worked on finding new
ways to meet the public and to get them on
board at early stages in the planning process.
The figure illustrates how the citizens meet the
authorities and business community at an early stage in workshops and various networking
activities. These include public meetings with
display boards, discussion forums and visits to
existing and potential wind turbine areas. Traditional citizen meetings usually only include
presentations by experts and panel debates
and come late in the planning process.
Through our work it has become clear to us
that municipalities must be more proactive and
direct in meeting the public. So far, feedback
from participants has been a call for clear, political statements when it comes to setting up
onshore wind farms.

1.Invite stakeholders: Ideally citizens should

be invited as a first step in a planning process
to participate in a debate about wind turbines
within their local community to kick start the
planning process of locating areas suitable for
possible wind turbines.
2.Establish workshops: Citizens and other
stakeholders with different opinions are empowered through constructive dialogue in a
workshop.
3.Network meetings: Network groups on
topics preferred by participants can be formed
in the workshops.
4.Network activities and results: Participants get to know and understand each other
better, qualified input to municipal planners
and political decision makers, participation in
field-trips, bottom-up thoughts etc. This creates an earlier dialogue and increases citizens
understanding and acceptance of the need for
new wind turbines.

16

Do you speak wind turbine?

DO YOU SPEAK WIND TURBINE?

As a rule of thumb, every MW installed offshore
generates enough electricity for roughly 1,000
Danish households per day.

Blade

The share of wind in the Danish electricity

consumption has increased steadily during
the last years: 30% in 2012, 33% in 2013
and 39% in 2014.
Hub
In 2013 and 2014, the average capacity of an
onshore wind turbine installed in Denmark
was 2.8 MW.

Nacelle

Gear box

The worlds largest wind turbine is currently being

tested at sterild The National Test Centre for Large
Wind Turbines. The turbine has a total height of 222
m, and once installed offshore the power it generates
will cover the daily electricity consumption of more
than 8,000 average Danish homes.

Generator

In 2014, 860 kW of wind energy were installed per

1,000 Danish citizen. In comparison, this number
was 250 kW for the other EU28 countries.

Tower

On the night of July 10, 2015, Danish wind turbines

produced 140% of the Danish electricity consumption.
The surplus was exported to Sweden, Norway and
Germany thanks to the interconnected grid
between the countries.

In its lifespan, a wind turbine can produce up

to 57 times the amount of energy that went
in to constructing it.

Landing platform
Different types of foundations:

Transition
piece

Foundation

Monopile
Tripod
Jacket
Gravity
Suction
Jacket

bucket suction

bucket

Norway

Denmark from above

17

DENMARK FROM ABOVE

Frederikshavn
7 MW

Sweden

Sby
200 MW
Upon completion in 2015, Denmarks second largest onshore
wind farm will be the 70 MW
Klim Fjordholme wind farm

Blaest Blade Test Centre

sterild
National Test Centre for Large Wind Turbines
Rnland
17 MW
2003

Vesterhav
North
200 MW

Anholt
400 MW
2013

Hvsre National Test Centre

for Large Wind Turbines
Denmarks largest onshore wind farm
is the 73 MW Nrhede-Hjortmose
wind farm commissioned in 2014
United Kingdom

Global Lightning
Protection Services
Denmarks third largest onshore
wind farm is the 34 MW Lem
Kr wind farm commissioned
in 2012

Vesterhav
South
200 MW
Horns Rev 3
400 MW
2019

Sams
23 MW
2003

Horns
Rev 1
160 MW
2002

LORC
Lindoe Offshore
Renewables
Center

nd
r la

House of Green
Force Technology
Danish
Technological
Institute

Sprog
21 MW
2009

et

he

DELTA
DHI

Sejr Bugt
200 MW

Vindeby
5 MW
1991

Horns
Rev 2
209 MW
2009

Tun Knob
5 MW
1995

Middelgrunden
40 MW
2000

Avedre Holme
11 MW
2009/2010

Smlandsfarvandet
200 MW
Kriegers Flak
600 MW
2021

Rdsand II
207 MW
2010

Bornholm
50 MW

Germany

Selected onshore
wind farm

Cable connections (Current)

Public Available
Test Facility

Offshore wind farm

(Commissioned)

Cable connections (Planned)

Place of Interest

Offshore wind farm

(Planned)

Cable connections (Proposed)

Near shore area

Possible installed capacity

The total Danish capacity onshore equals 3.739 MW

Name of wind farm

Capacity in MW
Year of commissioning

The total Danish capacity offshore equals 1.271 MW

18

Case: The worlds most depicted offshore windfarm is 50% locally owned

Photo: Danish Wind Industry Association

Case: The worlds most depicted offshore windfarm is 50% locally owned

19

THE WORLDS MOST DEPICTED

OFFSHORE WINDFARM IS 50%
LOCALLY OWNED
8,700 citizens are co-owners of Denmarks iconic offshore wind
farm Middelgrunden, located just off the coast of the capital
Copenhagen. Targeted information has played a key role in the
local involvement and support for the wind turbines
Erik Christiansen, Chairman of Middelgrunden Wind Turbine Cooperative

Set in a symbolic curving line in the waters outside Copenhagen, Middelgrunden

offshore wind farm stands as the image of
Denmarks world-renowned renewables
sector. The 40 MW wind farm was at the
time of commissioning in 2001 the worlds
largest offshore wind farm. Today, it covers
3% of Copenhagens electricity consumption.

customised cooperative: Middelgrunden

Wind Turbine Cooperative. Through the
cooperative, almost 8,700 local residents
became co-owners of the wind farm and
bought together 40,500 shares. In the end,
this amounted to a local ownership of 50%
of Middelgrunden offshore wind farm. The
other 50% of the project is owned by the
utility company DONG Energy.

A particularly innovative model of public ownership was used in the construction of Middelgrunden. To establish local
acceptance for the wind farm, groups of
local residents came together to form a

In the process, the key focus for Middelgrunden Wind Turbine Cooperative was
on sharing information with the local residents due to the landmark position of the
wind farm just outside the Copenhagen

harbour. It was of great importance to involve the local citizens in all phases from
planning and installation to the operational
phase. This has proven to enhance the local involvement in the project, as well as
the will to invest. Thousands of citizens in
Copenhagen have visited the wind farms
information stands and construction sites
and thousands attended the opening of
the wind farm in May 2001.
The project has proven the necessity of local information to ensure local involvement
and support for wind turbines.

FACTS ON WIND COOPERATIVES IN DENMARK

The cooperative movement has been part of the Danish story since the first consumer cooperative was created in 1866. Historically, the cooperatives have focused on the agricultural sector through for instance cooperative dairy and slaughterhouses but also
cooperative cold stores were common in Denmark in the 1950s. The general ideas behind the cooperatives are that both profits
and losses are shared between the members in relation to their companys turnover, that the cooperative is open for new members
and that it is one vote per member at meetings regardless of the size and turnover of a member.
The same ideas are present in the Danish legislation on new wind turbines, which state that at least 20% of the ownership of new
turbines has to be offered to citizens as shares of approx. 1000 kWh (annual production). The exceptions include small turbines
meant for private households, turbines erected solely for research, test and development and not least wind farms, which are put
out to tender by the Danish state - primarily large projects of 400-600 MW.
The practise of wind turbine cooperatives started in the 1980s and the following 10-15 years most turbines were erected by the
cooperatives. The current law states that the option to purchase must firstly be offered to any citizen above the age of 18 living
within 4.5 kilometres from the location of the turbines. Remaining shares are to be sold secondly to other citizens of the municipality in question. The idea behind wind turbines cooperatives and the option to purchase is to create a correlation between the
benefits and joy and the inconvenience of living close to a wind turbine.

20

Case: DENMARK A PIONEER IN WIND ENERGY

Photo: Danish Wind Industry Association

Case: DENMARK A PIONEER IN WIND ENERGY

21

DENMARK
A PIONEER IN WIND ENERGY
The use of wind as a source of energy in Denmark dates
back hundreds of years but the oil crisis of the 1970s lead to
a renewed focus on harnessing the natural forces and the
entrepreneurial ingenuity combined with a R&D focus
has given Denmark a pioneering role in wind

Wind mills and post mills were initially used

in the agricultural sector for grinding grains
and pumping water but in 1891, the Danish
physicist Poul la Cour started experimenting with wind power as a source of electricity. Supported by funds from the Danish
state, he created a turbine, which supplied
the school he was working at with direct
current and he even experimented with
storing wind energy. While ingenious, the
wind turbine could not compete with the
growing number of coal-fired power plants
and despite a brief blossoming during the
world wars, the development of the technology almost came to a standstill.
A renewed focus on wind
Highly dependent on imported energy,
the oil crises of the early 1970s lead to
increasing electricity costs in Denmark.
As a result, it became an objective to become independent of imported oil and in
the mid-1970s, the Danish state started
funding a development program for wind

The development in Danish wind energy

technology is remarkable. The first commercial turbines had an output of 22 kW
and the blades in the photo, dated 1980,
are 7.5 meters long and produced for 55 kW
turbines. The blades of the newest offshore
turbines are more than 80 meters long.
Photo: Erik Grove-Nielsen.

energy. This was followed by a test base

for smaller turbines in the late 1970s, as
industrious self-builders, grassroots and
entrepreneurs had started constructing
turbines for their own use. The first commercial turbines with an output of 22 kW
were constructed by machinery manufacturers around 1979. As a result, the Danish
wind energy story has been one of both a
bottom-up and a top-down approach and
the strategy has paid off.
Harnessing the wind offshore
In a search for more efficiency and a lower
cost of energy, the size of the turbines has
grown steadily over the years and while
most turbines in the early 1990s had sizes of up to 225 kW, the next generation of
wind turbines now reaches 8 MW. The larger turbines makes it economically feasible
to harness wind offshore, where the wind
speeds makes up for the larger expenses. In 1991, the worlds first offshore wind
farm was erected in Denmark, when eleven

450 kW turbines were commissioned. Many

more offshore wind farms has seen the
light of day since 1991 and the next Danish offshore wind farms, Horns Rev 3 and
Kriegers Flak, will reach sizes of 400-600
MW.
The future of wind energy
Today the Danish wind industry, employing
more than 28,000, holds a global market
share of more than 20% of all newly installed capacity and a study by the Danish
Energy Agency has concluded that onshore
wind energy has become the cheapest energy source for new electricity generation
in Denmark, undercutting coal and natural gas. However, the future calls for even
more efficient turbines, overall cost reductions and a continued focus on the cooperation and strong partnerships between
the industry, the private sector and the
research institutions which has previously
characterised the Danish wind energy story.

22

Case: sterild test centre ensures siemens wind power a competitive offshore advantage

Offering test facilities is a keystone in the Danish wind industry

Test facilities are crucial for technological and system innovation in the Danish
wind industry. In order to maintain Denmarks leading role within wind energy, it
is a prerequisite that the industry has easy access to test facilities for prototype
testing close to their R&D departments.
In Denmark you can test any part of a wind turbine. From materials to blades, welding, drivetrain and large components such as nacelles and last but not least full
scale turbines.

Siemens Wind Power is the worlds largest provider of offshore wind turbines. Siemens Wind Power has delivered turbines to the
three largest offshore parks in the world: London Array, Greater Gabbard and Anholt Havmllepark.
Photo: Siemens Wind Power A/S

Case: sterild test centre ensures siemens wind power a competitive offshore advantage

23

STERILD TEST CENTRE

ENSURES SIEMENS WIND POWER
A COMPETITIVE OFFSHORE
ADVANTAGE
Siemens Wind Power has just finished testing a 6 MW wind turbine at sterild Test Centre, the
worlds largest and most advanced centre for full scale turbine testing. The Danish test facility
allows Siemens Wind Power to accelerate innovation to reduce energy production costs for
offshore wind farms
Michael Hannibal, CEO Offshore, Siemens Wind Power

In October 2012, Siemens Wind Power

installed a 6 MW turbine at sterild Test
Centre in Northern Jutland, Denmark. The
test centre, operated by the Technical
University of Denmark (DTU), is of great
importance to us. The test site allows us to
test turbines on a full scale under changing
climatic conditions, which is a strong driver
for innovation and therefore a large component in reducing energy production for
wind farms.
The fast and comprehensive full scale testing possibility at sterild means that the
testing period has ended for SWP-6MW and
it is already being used by the European offshore wind market. Innovation is our most
important competitive advantage. Therefore, a public test facility, like sterild, only
reinforces the reason why we have decided
to carry out our turbine tests in Denmark.

The importance of sterild

sterild is currently the only place in the
world where measurements on turbines
up to 250 metres in height can be made.
For this reason, the test centre is ideal for
testing the offshore wind turbines of today
and tomorrow.
The technological improvements from the
tests are already showing. Firstly, they
ensure that our fleet of existing turbines
continue to evolve and that small improvements can be made in order to increase
output. Secondly, an entirely new and
much larger wind turbine is underway: A
10 MW turbine. It is not just an evolution
of the existing turbines, but a leap into
something bigger. This is a turbine that I
believe we will see on the market before
2020 thanks to the accelerated innovation that research and development testing allows for.

The Danish approach

Denmark has pioneered the wind industry
for the past four decades. Renewable energy is deeply integrated into the Danish
conscience and Denmark is known worldwide for this. Denmark has high education
and qualification levels within wind energy, which Siemens Wind Power takes advantage of in research and development.
Denmark is also characterised by a political
environment that has a positive attitude
towards renewable energy. The public aspect of sterild Test Centre is a good example of this. For all of these reasons, it is not
a coincidence that Siemens has chosen to
place and maintain its research and development departments in Denmark.
In addition to the test facility of sterild,
we have established our own test centres
in Denmark, investing over DKK 2 bn (EUR
268 m) in state-of-the-art research and
development departments in the cities
of Brande and Aalborg. Combined, these
make up the largest test facilities for wind
turbines and blades in the world.
Altogether, these strategic reasons provide Siemens Wind Power with the best
test opportunities in order for us to accelerate our wind turbine innovation.

Photo: Siemens Wind Power A/S

The first Siemens turbine at sterild, the

6 MW, is being installed.

24

Case: Advanced nacelle testing an integral part of vestas product development

Strong forces. Vestas own 20 MW test bench in Aarhus is ready to perform another test. Here, Vestas can simulate a complete life
cycle for key components and systems in order to map potential reliability issues and possible improvements. This significantly reduces risks for customers and increases the speed of product development. Knowledge previously gathered after years in the field can
now be collected over the course of months before a product is even installed for customers.
Photo: Vestas Wind Systems A/S

Case: Advanced nacelle testing an integral part of vestas product development

25

ADVANCED NACELLE TESTING

AN INTEGRAL PART OF VESTAS
PRODUCT DEVELOPMENT
The worlds largest wind turbine manufacturer, Vestas Wind
Systems, uses state-of-the-art test facilities to reach the
ambitious targets for product development. The newest
addition to the wind turbine test options in Denmark is the
nacelle tester at LORC
Anders Vedel, Executive Vice President & CTO, Vestas Wind Systems A/S

All around the year, Vestas is conducting

tests on different components in different
locations around the world. Most of these
tests take place in Denmark, because advanced test facilities and relevant competencies are available here. The latest addition is Lindoe Offshore Renewables Center
(LORC), where Vestas will perform full-scale
testing of nacelles over the coming years.
Comprehensive and advanced testing of
components, systems and products is a
key part of product development in Vestas, where the overall objective is to reduce
the levelised cost of wind energy (by definition the production cost of each unit of
electricity generated over the lifetime of a
wind farm taking into account a wind farms
development costs, capital investments,
financial costs and lifetime running costs),
shorten the time it takes to bring new products to market and to increase the business
case certainty for the customers.

Shortening the time to market. LORC

offers the worlds most realistic indoor full
scale testing of 3-10MW nacelles. A unique
design allows the hub to be included and
the pitch system to remain active during
testing of the nacelles functionalities and
interaction with the grid. The full software
and hardware is tested under extreme
events with a test controller calculating
the torque reference from simulated wind
input.

The test process can roughly be divided into

three steps with good facilities available in
Denmark for every step.
Step 1: Component and
system integration testing
Aarhus, the second-largest city in Denmark, provides the setting for Vestas powerful in-house test bench for wind turbines.
Here, the full system, including main components such as gearbox and generator, is
tested. The test bench can apply massive
power and loads to the drivetrain similar
to the conditions in the field, which allows
us to simulate a complete life cycle over a
short period of time.
Step 2: Complete nacelle testing
LORC adds another element to the tests,
as the complete nacelle, including the hub,
is tested on a 10 MW test bench. It enables Vestas to test other key components
in the wind turbine and not least their

Photo: Vestas Wind Systems A/S

interaction during realistic conditions. For

example, the full software and hardware
is tested calculating the torque reference
from simulated wind input. The test bench
is close to unique when it comes to the ability to test the electrical components and
their output to the grid. This is of course of
great interest to Vestas and in the end to
our customers.
Step 3: Field tests
Finally, we test in the field to prove that we
can deliver what we have promised our customers. A number of sites in Denmark are
dedicated to test purposes, which enables
us to quickly bring a prototype to field testing.

26

Case: Making offshore wind attractive and accessible

to investors

Beatrice is an offshore wind project located in Outer Moray Firth,

Scotland, with a potential capacity of up to 664 MW. The project has
been substantially developed by SSE and Repsol and is progressing
towards Final Investment Decision in 2016. SSE manages the development of the project and will be the main operator. Beatrice is
owned by SSE (50%), Repsol (25%), Copenhagen Infrastructure I
(12.5%) and Copenhagen Infrastructure II (12.5%). All shareholders
have seats on the board of the project.

Photo: Copenhagen Infrastructure Partners

Case: Making offshore wind attractive and accessible

to investors

27

MAKING OFFSHORE WIND

ATTRACTIVE AND ACCESSIBLE
TO INVESTORS

Offshore wind projects are politically and

financially attractive investments

With interest rates at a historically low level, investing in

infrastructure such as offshore wind is becoming increasingly
attractive as new investment channels become available
Christina Grumstrup Srensen, Senior Partner, Copenhagen Infrastructure Partners
Stephanie Bendorff Rpcke, Manager, Copenhagen Infrastructure Partners

For institutional investors, investment in

offshore wind is attractive. With long time
frames, stable returns over several years
and a strong cash flow, offshore wind can
serve as a substitute to certain bond types.
Governments, seeking to achieve CO2 reductions, address future capacity needs and
ensure regional security of supply, support
offshore wind investments and the projects
are becoming more bankable due to proven
concept and technology. The worlds first
offshore wind farm was Danish and built in
1991. Today, we have more than 5 GW offshore wind capacity installed in Europe and
The European Wind Energy Association anticipates a level of around 23 GW by 2020.
However, many institutional investors do
not yet have the required resources and
experience within energy infrastructure
investments. This has led to the formation
of specialised infrastructure funds, such
as Copenhagen Infrastructure Partners
(CIP), which was founded in 2012. To make
offshore wind projects more attractive and

accessible for institutional investors, CIP

applies an industrial approach. The five
partners in CIP have extensive experience
within development, construction and
operations from numerous offshore wind
projects and leverage their industrial background for access to proprietary deals.
The recent CIP investment in the UK offshore wind project Beatrice is a good example of how and why the industrial approach
works. CIP and the two shareholders of Beatrice, the UK energy company SSE and the
global energy company Repsol, engaged in
a dialogue in early 2014 about the possible
acquisition of a shareholding in Beatrice. In
November 2014, CIP acquired 25% of Beatrice from SSE. The acquisition was made
on behalf of the two funds, Copenhagen Infrastructure I & II, which have commitments
from eight of the largest institutional investors, primarily pension funds, in Denmark.
SSE and Repsol had developed the project
substantially since 2009 and CIP entered
the project at the last stage of develop-

ment. This was late enough for the development risks to be significantly reduced: the
Investment Contract was awarded and the
grid connection, main consents and building
permits were obtained. However, it was as
well early enough to allow CIP to participate
in the optimization of risk allocation (e.g.
allocation of risks in the contracts with suppliers), concept (e.g. wind farm layout and
technology choice) and bankability (e.g. participating in securing bankable Operations &
Maintenance contracts and Power Purchase
Agreements, designing and executing the
project finance strategy). All areas in which
the CIP partners have substantial experience.
Unlike most infrastructure funds, CIP has a
long investment horizon. This is attractive
for industrial companies looking for long
term partners with whom they can build and
operate the projects and for institutional
investors looking for strong cash flows and
stable inflation-linked returns for many
years.

Illustrative example: Revenue per MWh for a UK offshore

wind project with an Investment Contract
Nominal GBP received per MWh produced
Investment Contract
strike price

Year 1

Estimated market price

Illustrative average level

Estimated market price

Illustrative high and low level

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Beatrice is one of five offshore wind projects in the UK awarded

an Investment Contract by the UK government. The Investment
Contract secures the generator a fixed CPI indexed price per MWh
for a 15-year period (green area). After this period, the generator
receives the market price (blue area) which is expected to be lower and exhibit fluctuations due to seasonal effects and changes in
economic activity. The investment contract thus reduces the power
price risk significantly and produces bond-like cash flows.
The graph is only an illustrative example of the revenue profile for a
project similar to Beatrice.

28

Case: Sustainable wind export business

Export of the Danish energy model

The Danish political parties have approved an initiative to
promote export of Danish energy solutions in the period
from 2014 to 2015. The countries of focus for the export
initiative are UK, Germany and China. The aim is to facilitate
increased collaboration between Danish and foreign authorities to pave the way for business cooperation, export
opportunities and foreign investments in Denmark.

Photo: Keenpress/Wind Power Works

A green transition. China stands as an example of countries wishing to transform its energy sector into a greener one. The countrys
extensive need for energy has seen a large fraction of renewable
energy projects being built in recent years. Denmarks extensive
knowledge within renewable energy technologies, in particular
within wind, creates great knowledge-sharing opportunities between the two countries.

Case: Sustainable wind export business

29

SUSTAINABLE WIND
EXPORT BUSINESS

Industry hand in hand with intergovernmental

cooperation on the green agenda
Wind energy covered more than 39% of the Danish electricity consumption in 2014. This makes
Denmark a world champion in wind generated electricity and a market leader in the green energy
transition. Denmark has recently created a new initiative to extend our successful government to
government cooperation in this field
Morten Bk, Director General, Danish Energy Agency

Green energy technologies are in high demand and Denmark is a living example that
economic growth and CO2 reductions can be
achieved simultaneously. Denmark has already established bilateral cooperation with
a number of countries, including China, Mexico, South Africa and Vietnam to catalyse the
energy transition in these countries. The
focus is on energy policy and regulatory issues - such as cost effective framework conditions for wind power expansions.
China has entered the energy transition
fast track with a clear focus on e.g. wind
performance and quality, aiming to learn
from Denmarks technology development
practice and regulatory experience. The cooperation makes for real cuts in global CO2
emissions and paves the way for increased
bilateral trading in the energy area.
Danish export statistics show that green
energy technology equals good business.
Energy technology exports have long accounted for a large share of Denmarks
export of goods compared to other EU
countries. In 2014, the export of energy
technologies amounted to 12% of exported
goods total. Of this, green technologies accounted for more than half.
Wind export
China exemplifies countries that wish to
green their energy production. With an extensive thirst for more energy, renewables
are making up a large fraction of newly built
energy projects in China. Based on a decade
of mutually beneficial cooperation Denmark
has recently initiated a pilot project to support Chinas energy transition.
Out of the total export of goods to China
in 2014, export of energy technologies

amounted to 12.2% with a green energy

technology proportion of 29.5%. Of this,
the majority was wind.
Government to Government
cooperation
In the implementation of the current bilateral project, the Danish Energy Agency
has joined forces with the Trade Council at
the Royal Danish Embassy in Beijing and
Danish suppliers to the wind industry in
China. The project idea is based on an integrated approach, where deep regulatory
cooperation makes for sustained business
opportunities. The Chinese authorities have
welcomed this approach, appreciating the
Danish experience in crafting legislation,
regulation and modelling for greening the
energy sector.
Changing the focus
China has invested in onshore wind energy
amounting to approx. 100 GW. Some farms

2005

2014

Danmark

EXPORT SHARE

8.4

12.0

Finland

6.6

9.1

Italien

7.8

9.1

Tyskland

7.5

8.7

strig

7.4

8.3

Sverige

6.6

7.9

EU15

5.8

6.6

Frankrig

6.1

6.2

Storbritannien

5.2

5.7

Spanien

4.3

5.4

Portugal

4.5

5.4

Luxembourg

4.9

4.9

Grkenland

5.2

3.4

Belgien

3.3

3.2

Holland

3.0

3.2

Irland

2.0

1.8

in this vast portfolio are not performing up

to standards and the Chinese government
is dedicated to make the most of its investment. In the pilot project, Denmark will
share its knowledge on how Chinese wind
farms can increase performance using Danish standards and technology.
The approach is a focus on Levelized Cost of
Energy (LCOE). LCOE is the production cost
of each unit of electricity generated over
the life time of a wind farm taking into account a wind farms development cost, capital investment, financial costs, and lifetime
running costs.
The way we think of wind is changing
from a focus on investment costs only to
a broader focus that includes operation
and maintenance costs, too. China has historically approached wind projects with a
relatively short-term investment perspective. Through the Danish LCOE approach,
Chinese wind farms can achieve a more robust business case and greater return on
investments.

Energy technologies share of the

export of goods among the EU15
countries
In comparison to other EU countries, export
of energy technologies has long accounted
for a large share of goods exported from
Denmark.

30

Case: Selected examples of danish footprints in offshore wind

SELECTED EXAMPLES OF DANISH FOOTPRINTS IN OFFSHORE WIND

London Array 630 MW

United Kingdom 2013
Danish deliveries:
Developer and operator
Wind turbines
Wind turbine installation
Substructure installation
Substructure main constructor
Substructure design
Design of substation foundation
Monopiles and transition piece
Grouting
Logistics
Monitoring of wind, waves and currents
Project finance

Horns Rev 2 209 MW

Denmark 2009
Danish deliveries:
Developer
Accommodation platform
Wind turbines
Wind turbine installation
Foundations
Foundation installation
Foundation design
Operator
Substation
Substation installation
Project finance

Middelgrunden 40MW
Denmark 2001
Danish deliveries:
Developer and operator
Wind turbines
Wind turbine installation
Substructure design
Design of substation foundation
Substructure main constructor
Substructure installation
Foundations and transition pieces
Logistics
Project finance

Kentish Flats 90 MW
United Kingdom 2005
Danish deliveries:
Developer
Wind turbines
Wind turbine installation
Substructure design
Substructure main constructor
J-tube installation
Grouting
Logistics

Case: Denmark - The supplier hub

31

DENMARK - THE SUPPLIER HUB

The Danish supply chain and production capabilities form a unique

wind energy supplier hub. Strong and extensive collaboration, commitment to innovation and years of experience form the basis of a strong
and progressive hub that is able to compete internationally
For nearly 40 years, companies in the Danish wind industry have developed and built
wind turbines, installed them and integrated wind into the energy system. Today,
Denmark is home to some of the worlds
leading companies, and more than 500
companies, working in all areas of the wind
industry, are located in Denmark.
Every link in the supply chain is represented in Denmark. Hundreds of companies are
involved in wind turbine production, substructures, logistics, investment, development, installation and service. They form
a close-knit network with unique competences.
A strong supplier hub now and in the
future
Competitive parameters and supplier requirements have developed by leaps and
bounds in the last decade. While focus remains on the innovative capabilities of the
suppliers, there has also been increasing
focus on other aspects, such as quality
management, time to market and servicing.
The Danish supply chain has adapted to the
changing landscape and has remained competitive in the global marketplace. When it
comes to lowering the cost of wind energy,
Danish suppliers have a strong hand.
Anholt 400 MW
Denmark 2013
Danish deliveries:
Developer and operator
Wind turbines
Wind turbine installation
Substation installation
Substation design
Substation manufacturer
Export cables
Export cable installation
Substructure main constructor
Substructure design
Monopiles and transition piece
Monopiles and transition piece installation
Export cable manufacturing
Export cable installation
Grouting
Logistics
Geophysical investigations
Environmental Impact Assessment
Project finance

The current evolution of the supply chain

structure is evidence of maturity of the
Danish supplier hub. Drawing inspiration
from both the automotive and aerospace
industry, industrialization of the wind industry is moving forward, and it is becoming evident that the Danish supply chain can
set the standards for structural changes
and new business models, such as system
solutions.

Forging alliances Danish style

Wind turbine manufactures today require
systems and solutions from the supply
chain more than individual components
from a range of companies.
For the big wind turbine producers, contracting a series of expert companies individually to each provide one part of a total
system is time consuming and costly to
manage compared with managing a single
interface with an allied group. Denmark,
with its myriad of small companies with
specialist wind industry knowledge, often
run by people with years of shared industry
experience, is ideally positioned to respond
to the new trend.
Danish suppliers have been good at organising themselves in groups and co-operative constellations to supply a complete
solution. Suppliers who before delivered
directly to the big producers now deliver
to other sub-suppliers who take care of the
direct relation with the wind turbine producer.
Moving towards more integrated system solutions reinforces the need for the
wind industry to consolidate and cooperate. Strong ties between the wind turbine
manufacturers and the so-called system
suppliers are in the best interest of all parties. These suppliers achieve the status of
development partners for the next generation wind turbines another advancement
which serves to underline the strength of
the Danish supplier hub.

Learn more about Danish solutions in wind energy,

find more cases from around the world and connect
with Danish expertise at:

stateofgreen.com/wind-energy

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