1. Wind Energy in Denmark Industry and framework Camilla Holbech, Senior Policy Adviser Danish Wind Industry Association

2. Agenda Who is DWIA? Wind energy in Denmark – facts and figures Denmark as a Wind Energy Hub Policy and regulatory framework Testing is crucial Offshore

3. Who is the Danish Wind Industry Association? Denmark’s largest interest and business organisation focusing solely on wind energy More than 250 members from one-person companies to Siemens Wind Power and Vestas Wind Systems with a global footprint and 5000+ employees each Facilitates networks, cooperation, knowledge for our members. Creates export drives. Does lobbying work regarding energy policy and industrial policy Generates market knowledge and distributes facts 20 employees and 3 regional offices

4. Zooming in on the Danish wind industry Est. 30,100 employees in the wind industry in 2014 11.32 billion Euro turnover in 2014 ~ 63 % exported 5.2 % of the total Danish exports comes from the wind industry Denmark houses some of the most experienced, competitive and globally oriented wind companies in the world World class test facilities, easy market access, extensive expertise and unique knowledge The Danish supply chain has been strongly involved in most offshore wind farm projects in the world Danish companies have produced ~ 9 out of 10 offshore turbines installed to date

5. World record in share of electricity consumption 60 pct. wind by 2021

6. Why Denmark as a Wind Power hub? Denmark is leading of wind both in terms of industry, innovation and development Highly developed value chain, both in onshore and offshore wind Foreign companies like Envision establish R&D devisions in Denmark World class national test facilities LORC and Østerild are used by leading global wind turbine producers– Alstom, Envision, MHI Vestas and Siemens Wind Power We define today’s best practice and standards in the industry and the global industry follows

7. Long term political support for the greening of the energy supply Danish Energy policy- agreement from 2012: Onshore1.300-1.800 MW Near shore offshore400 MW (+50 MW test) Offshore1.000 MW We will reach 50 pct. with fewer turbines than today 50 pct. wind by 2020 Onshore 3,000 MW Offshore 2.800 MW

8. Large scale offshore wind regulation Based on auctions / tenders on locations identified by government. The winner of a tender is the one with the lowest bid for a feed-in-premium for the first 50,000 full load hours pr. MW. This corresponds to app. the first 10-12 years out of a concession of 25 years of operation. The tender process ensures a competitive market based bid, that is based on the most cost competitive technologies on the specific site conditions – wind conditions, depth, waves, seabed, distance to shore etc. The subsidy will not be given during hours with negative prices on the spot market in order to support the power system.

9. Danish way of doing onshore planning Municipalities are responsible for planning Main planning rule 4*tip height to nearest neighbour E.g. 4*150 meters = 600 meters The option to purchase scheme – 20% The green scheme – approx. 12.000 euro per MW to social and recreational initiatives Loss of value to real property Government Task Force to support municipalities and local community  Neighbours are very well protected

10. Onshore remuneration Feed-in premium onshore. From January 2014: 0,03 Euro per kWh on top of the revenue from selling the electricity. Capped. Subsidy period: For a fixed amount of electricity production calculated on the basis of the size of the rotor (70%) and the size of the generator (30%). Depending on the turbine and wind conditions on the specific site, support is typically granted for 6-8 years.

11. Test and demonstration is crucial Today any part af a turbine can be tested in Denmark Testcenter for prototypes: 7 test stands for up to 250 meter turbines at Østerild. Currently the world’s tallest wind turbine is being tested at Østerild (8 MW 222 meters) LORC Narcelle Testing:Two indoor facilities for mechanical and function testing of full scale narcelles up to 10 MW Several wind tunnels for testing of Aerodynamics and Noise

12. Approx. 1/3 of the Danish wind industry’s EUR 11.32 billion turnover (2014) comes from the offshore wind sector. Worlds first offshore wind farm installed in 1991. Denmark: A pioneer in Offshore Wind Today nearly 9 out of 10 offshore turbines in Europe are produced by Danish based turbine manufactures Danish companies are involved in every aspect: Planning, Manufacturing, Financing, Installing, Operating and Maintaining

13. We are going to more than double our offshore wind capacity within the next 5 years

14. Camilla Holbech, Senior Adviser Danish Wind Industry Association ch@windpower.org Wind power – a part of the solution!

15. Wind energy in Denmark – the historical development Denmark has more than 5000 turbines, which covers more than 4.800 MW of installed capacity The world’s largest wind penetration as 39 % of electricity consumption was covered by wind energy in 2014 First movers both in onshore and offshore wind technology – a ”wind energy hub”