February 3

Denmark bets on exports to Germany to beat offshore wind doldrum

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[[{“value”:”offshore wind

 

The Danish government is looking to rejuvenate its offshore wind industry with EU backing after a failed auction last year left it in the doldrums.

In December last year, the Norwegian government was forced to admit that no company wanted to build a 3 GW wind farm in the country’s waters. This came as a shock in a country where more than 55% of electricity is generated by wind.

To pull the industry out of the mud, Copenhagen is betting on its energy-hungry neighbour Germany as a destination for hydrogen and electricity exports.

“The Danish Government will go all in to establish the conditions that can enable a rapid scale up of Danish offshore wind,” said Energy Minister Lars Aagaard on Friday.

He announced a new tender for an offshore wind farm with a capacity of up to 3 GW and “more attractive conditions”.

When the December tender failed, industry association WindEurope said the outcome was “disappointing but sadly not surprising”, citing a lack of subsidies as well as weak demand for electricity.

The next auction will have subsidies, Aagaard said.

On the demand side, two new energy links with Germany will be key to pulling Denmark’s wind industry out of its slump, alongside a faster roll-out of heat pumps and electric cars.

On the one hand, there is the political ambition to supply hydrogen to industrial consumers near Hamburg.

“We are committed to realizing hydrogen export to Germany in 2030,” Aagaard said. Previously the target date was 2028.

Aagaard added that he would provide additional subsidies and focus on a first section of a smaller 0.5 TWh pipeline connecting Germany to the Danish mainland.

The second part of Aagaard’s plan involves turning the picturesque island of Bornholm, with its 40,000 inhabitants and steep cliffs, into the hub of a huge offshore wind farm, with a power cable linking Denmark and Germany to allow electricity to flow back and forth.

The energy island of Bornholm has been conceived over the past decade and has been left for dead several times due to opposition from Danish businesses. But both the EU and Copenhagen threw their weight behind it this week, reviving its prospects.

On Thursday, Brussels announced that it would back the project with €645 million as part of its multi-year funding programme for electricity cable links between EU countries.

Bornholm also features prominently in the Danish government’s plans, although these are currently hampered by the lack of a counterpart in Berlin, where the remaining government is a lame duck.

Referring to relations with Germany, the energy ministry said that “the legal framework for implementing the next stage of the Bornholm energy island is not in place”. A 2023 cooperation agreement won’t be enough to build on.

However, using Danish waters to supply Europe with electricity remains a “top priority” and Copenhagen is “ready to continue discussions (…) as soon as a new German government is in place”, the ministry added.

[DC/DE]

Source: Euractiv.com

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