New IEA Report:  

Wind Power Cheapest in Denmark

2015.09.14

A new report by the International Energy Agency compares the cost of electricity production across a number of technologies. The conclusion is that renewable energy from wind and solar energy is now competitive and can in some cases outperform fossil fuels. The study also concludes that Denmark is the country in Europe where wind turbines supply the cheapest power.

Wind Turbine

Competitive Power from Wind Turbines

The IEA report Projected Costs of Generating Electricity compares expected production cost of electricity across a number of technologies. The report concludes that onshore

wind turbines can provide competitive power, only surpassed by newly built nuclear power plants. At the same time, a comparison between countries shows that Denmark can expect the lowest prices for power produced by new wind turbines in the EU.

-“For a long time, we have experienced falling prices for renewable energy technologies. Therefore, not surprisingly, the IEA now concludes that wind is cheaper than coal. But the low prices are also an indication that a number of major countries have begun to take the green transition seriously. It offers economies of scale, which helps to push the price all the way down,” says Andes Stouge, Deputy Director of the Danish Energy Association .

Electricity mix with 40 per cent wind power

Today, Denmark's electricity mix consists of approximately 40 per cent wind power, delivered from more than 5,000 onshore and offshore wind turbines . At the same time, Danish companies are front-runners in installing wind turbines.

-“In Denmark we have been front-runners and today we have a strong industry for, amongst others, offshore wind technology. This is also demonstrated by having some of the lowest costs of wind power from offshore wind turbines in the world,” says Anders Stouge.

Important to focus on a smart energy grid

He points out that cost competitive renewable energy also requires a focus on the energy grid and consumption.

-“The report only describes the production costs. But if we want to continue a renewable energy system, we must also ensure that the green alternative is competitive. This is done best, by creating a demand for the power, when the power is available. Therefore, we must focus on integrating the power into the heating and transportation , and ensure that the energy can flow freely across national borders within the EU.”

The IEA report uses data from 181 energy projects in 22 countries to calculate the cost of supplying power from new plants in 2020. The report is updated every five years.

Read more about the
report here. Read about the Danish Wind industry and smart grid here on the website.

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Peder Bo Sørensen

Peder Bo Sørensen

+45 2170 5851

pedsor@um.dk

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