On Monday evening, a new Danish-German agreement was signed to breathe new life into the otherwise stranded offshore wind project Energiø Bornholm. The two countries have entered into an agreement to "share the costs of the support needed for offshore wind".
However, the Ministry of Climate, Energy and Utilities does not mention how the costs will be distributed more precisely.
Energiø Bornholm will be the world's first energy island. It is expected to be able to supply three million households and companies with electricity. The project will establish an electricity trade connection between Denmark and Germany with a total offshore wind capacity of three gigawatts.
Positive reactions from several sides
According to figures from Dansk Metal, European companies today pay two to three times as much for energy as competitors in the USA and China. But Energiø Bornholm can help change that.
- If European industry is to survive and develop, it requires access to abundant, cheap and green electricity, and the agreement on Energiø Bornholm ensures this, says Claus Jensen, chairman of the Danish Metal Confederation.
The agreement is a crucial step towards increased European energy security and strengthened competitiveness, says the Confederation of Danish Industry.
- When we expand renewable energy on this scale, we lower companies' energy prices, strengthen security of supply and make it more attractive to locate production and data centers in Europe, says Lars Sandahl Sørensen, CEO of the Confederation of Danish Industry.
According to the Confederation of Danish Industry, access to large amounts of stable, green electricity is a prerequisite for companies to dare to invest, expand and create new jobs here and in the rest of Europe, it says.
Collaboration is the way forward
Green Power Denmark welcomes the fact that new electricity connections are being made on across borders and new ways to bring the large, untapped Danish wind resources into play for energy production for the benefit of both Denmark and our European neighbors.
- Green Power Denmark is in favor of offshore wind on market terms. Therefore, it is important that the decision to support offshore wind is accompanied by a rapid and tangible effort to increase electrification. The government should soon present a concrete electrification plan for Denmark, which has also been promised in previous political agreements, says Kristian Jensen, director of the industry association.
Energiø Bornholm is an example of how Denmark can help other countries free themselves from their energy dependence, says the industry organization.
- We need much more energy cooperation across borders, and Denmark has the areas to be able to help other countries free themselves from their dependence on expensive, uncertain and polluting imported energy, while at the same time creating Danish growth and employment, says Kristian Jensen
Among other things, some countries are affected by "shadowing effects", where wind turbines have to be placed so close that they shade each other and thus ensure less production per turbine.
F&P cooperation across borders can open up for investments
Forsikring & Pension (F&P), which represents potential investors in the form of pension companies, is also pleased with the agreement, which is seen perspectives in. According to F&P, Danish offshore wind development has so far been limited by the fact that the Danes have not been able to purchase all the green energy from Danish offshore wind that we could produce from the Danish seabed. This will change with the agreement and provide new opportunities.
- The Danish market for investments in offshore wind has been fixed because the risk of investing in Danish offshore wind has been high. The agreement will guarantee a fixed settlement price, and this reduces the investors' risk and lowers the requirement for the expected return, says Kent Damsgaard, CEO of F&P. He continues:
- Therefore, the agreement expands the market, and the opportunities to attract international investors – such as pension companies – are greater. This could be a gain for the green transition and the path towards energy independence in Europe
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