Denmark's Energinet.dk to Invest $231 Million to Connect Offshore Windfarm to Mainland Power Grid

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Researched by Industrial Info Resources (Sugar Land, Texas)--The supervisory board of Denmark's energy transmission network operator Energinet.dk (Fredericia) has approved an investment of approximately 164 million euros ($231 million) for developing infrastructure to link a new offshore windfarm project located between the Djursland and Anholt islands to the power grid on the mainland. The windfarm, located in the Kattegat sea region, is expected to commence operations by 2012. Electricity generated at this windfarm will be carried onshore through submarine cables and then transmitted to a substation with a capacity of 400 kilovolts. The substation, located in Trige, will be connected to the main power grid.

When operational, the 400-MW windfarm is estimated to become the largest wind power project in the country, twice the size of the currently largest windfarm. Power generated at the new windfarm is expected to cater to about 4% of Denmark's total energy consumption by providing electricity to approximately 400,000 homes. The Danish Energy Agency (Copenhagen, Denmark) has already begun the process of inviting tenders for the construction of the windfarm. Energinet.dk will perform the environmental impact assessment for the project.

Energinet.dk, a state-controlled public-sector enterprise, was formed in 2005 through the merger of Gastra, Elkraft System, Eltra and Elkraft Transmission. The company has been working on developing inter-regional energy connectivity with its European neighbors. Norway's transmission system operator Statnett (Oslo) and Energinet.dk are planning to augment the electricity interconnection between the two countries. The purpose of the expansion is to enhance transmission efficiency, integrate more wind power in the system and intensify competition in the energy market. The Skagerrak-4 interconnect will consist of substations in both Tjele, Denmark, and Kristiansand, Norway. The total length of transmission cable will be about 220 kilometers, 90 kilometers of which will be on land, while the rest will be submarine. The interconnection is expected to be commissioned in 2014 and will cost approximately 374.5 million euros ($527.24 million). Denmark will make an estimated investment of 200 million euros ($282 million) in the project.

Energinet.dk is also discussing the possibility of increasing the exchange of renewable energy with the Netherlands. The COBRA cable link between Energinet.dk and TenneT TSO BV (Arnhem, Netherlands) is also in the planning stages. The target date for commencement of operations has been set for 2017.

Energinet.dk is also joining forces with Svenska Kraftnat SE (Sundbyberg, Sweden) and Vattenfall Europe AG (Berlin, Germany) to carry out a feasibility study for the construction of an offshore power transmission grid. This will link the grids of Sweden, Denmark and Germany simultaneously and connect the offshore wind turbines of these countries at Kriegers Flak with the grid on land. Kriegers Flak is a shallow region in the Baltic, which is one of areas selected by Denmark to set up four windfarms of 200 MW each. Incidentally, the same location is also being considered by Germany and Sweden to set up wind power projects. If Kriegers Falk is chosen as the final location by the three countries, then the total installed power generation capacity of the region could increase to about 1,800 MW, making it the first international offshore electricity grid in the world, providing energy transfer between Germany, Sweden and Denmark.

According to the Danish Energy Agency, Denmark's energy consumption in 2008 fell by 3% compared to the previous year, while greenhouse-gas emissions also dipped 5.9% during the same period. This has been attributed to Denmark becoming a net importer of energy in 2008 from being a net exporter in 2007. Coal and oil consumption fell by 2.5% and 3.6%, respectively, while the use of natural gas grew 0.8%. In 2008, renewable energy accounted for 17.41% of the country's energy consumption, which was 3.4% lower than the previous year. Oil and natural gas accounted for 39.79% and 20.56%, respectively, of the total energy mix, while coal/coke and power generated from waste contributed approximately 20.56% and 1.08%, respectively. Energy imports accounted for about 0.6% of the total energy consumption.

The Danish energy policy has set a target to increase the contribution of renewable energy to 20% by 2011 and further to 30% by 2020. In 2008, the country, which is a leader in the development of wind power, recorded wind energy technology exports of 5.68 billion euros ($7.99 billion). Denmark will add an estimated 1,300 MW of additional wind power capacity by 2012, which is expected to take its total installed wind power generation capacity to 4,400 MW. Among other projects, Denmark will commission two 150-MW onshore windfarms, one in 2010 and the other in 2011, followed by two 200-MW wind power plants in 2012.

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