Denmark

Denmark

Denmark plans 20% community ownership for near-shore wind

Political deal names six sites earmarked for 500MW by 2020

A political agreement has been reached by Denmark's ruling political parties about a plan to install 500MW of near-shore capacity by 2020. The draft policy will be debated by the country's parliament in February 2013.

One of the most innovative aspects of the policy is a stipulation that 20% stakes be offered to residents and business close to the developments at cost price. For those projects achieving 30% community ownership, a higher feed-in tariff will be available. If passed, Denmark's near-shore wind policy will represent the first introduction of systematic community ownership for offshore wind projects in any jurisdiction.

The 20% community ownership clause for near-shore projects largely mirrors Denmark's regulations for onshore wind projects.

Six near-shore sites – rather than the eight that were identified earlier this autumn - will be available for tender, although it is not necessary for all six to be developed in order for the capacity target to be achieved. Two sites- Jammerland Bugt and Jammerbugt Syd - have been eliminated because there was insufficient local government support for their development, the Danish energy ministry confirmed to Windpower Offshore.

The six sites are: Bornholm, Smålandsfarvandet, Sejerø Bugt, Sæby, Vesterhav Syd og Vesterhav Nord. Developments will be a minimum of 4km from shore. In addition, two larger offshore wind projects with a combined capacity of 1GW are also planned for Danish waters: 400MW Horns Rev 3 and 600MW Kriegers Flak. In total, 1.5GW of new offshore capacity is scheduled to come online by 2020, designed to help Denmark achieve its target of wind energy supplying 50% of national electricity consumption

Individual near-shore projects will be capped at 200MW, with 50MW of the total 500MW to be used for testing of innovative technology, rather than commercial development. The project(s) delivering the 50MW research and development (R&D) capacity will benefit from higher financial support.

Danish electricity network operator, Energinet.dk, will carry out environmental impact assessments (EIAs) for all six sites prior to the launch, which will be overseen by the Danish Energy Agency.

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