Denmark has great ambitions on the offshore wind front. The Danish Parliament has entered into agreements that will intensify the expansion of offshore wind in the coming years, and a tender is currently underway for the right to erect several GW offshore wind turbines.
As a result of the great ambitions, the civic think tank Cepos has produced a new analysis, which suggests how the benefits of the large-scale expansion of offshore wind will not only be a step in the right direction for the green transition, but will also be an economic benefit for society.
If the expansion is not handled properly, it could end up with a significant bill for taxpayers. Therefore, wind expansion should not be a goal in itself, and the massive state support for renewable energy should be phased out, says a press release from Cepos.
- We must ensure that the expansion takes place within appropriate economic frameworks. The state should not be a co-owner of offshore wind projects or provide unnecessary support. It will be the taxpayers or electricity customers who end up with the bill. The payment to the state should consist solely of auctioning off the right to use the sea areas to install turbines, says Otto Brøns-Petersen, Head of Analysis at Cepos, and continues:
- We have a unique opportunity to ensure a cost-effective green transition by letting market forces prevail. Wind development should be driven by market players' demand and not by political desires for capacity.
CEPOS recommends the following for optimal offshore wind development:
- Market interest should drive the speed of development
- The state should auction the right to use an area of sea
- The state should not be a co-owner of offshore wind projects
- The infrastructure should be regulated
- Regardless of ownership, tariffs should be set cost-effectively and reflect the load on the infrastructure.
amp
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
