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Danish Approaches to Renewable Energy: Lessons for Minnesota Arne Kildegaard Associate Professor of Economics Universit...

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Danish Approaches to Renewable Energy: Lessons for Minnesota

Arne Kildegaard Associate Professor of Economics University of Minnesota, Morris -andGuest Researcher 2007-08 Energy Systems Analysis Risø National Laboratory Roskilde, Denmark

Risø/DTU National Laboratory

Niels Bohr

Nuclear Physicist 1885-1962

Niels Bohr

Nuclear Physicist 1885-1962

“Your theory is crazy, but not crazy enough to be true”

“How wonderful that we have met with a paradox. Now we have some hope of making progress!”

The Order of the Elephant: “Contraria Sunt Complementa”

(From the Risø/DTU website)

Basic Energy-Related Challenges

1. GHGs 2. Security of Supply

Risø’s Approach:

Risø’s Approach: 1. Renewable Energy Generation Technology - Fuel cells - Wind energy - Biomass/biofuels - Solar energy

Risø’s Approach: 1. Renewable Energy Generation Technology - Fuel cells - Wind energy - Biomass/biofuels - Solar energy

2. Energy Systems Analysis - Power (electricity) - Heat - Transportation

The Danish approach 1. Infrastructure investment - R&D funding - Transmission (and distribution) to support wind power - District Heating

The Danish approach 1. Infrastructure investment - R&D funding - Transmission (and distribution) to support wind power - District Heating

2. Laws of access - Feed-in tariffs - “Must-take” CHP provisions

Wind power

Wind power production as a % of total electricity consumption 20 18 16 14 12 10 8 6 4 2 0

U.S.

Germany

Denmark

Wind power Percent of Wind Power Locally Owned 90 80 70 60 50 40 30 20 10 0

Germany

Denmark

Minnesota

CHP/district heating: Why it matters

- Efficiency - A sink for low-density renewable energy flows

CHP/district heating: Efficiency

(Aggregate E.U. Data, 2007)

CHP/district heating: Fuels used

CHP/district heating: Dispersion of plants in DK

CHP/district heating: % supply of heating and power

CHP/district heating: Selected European countries

Compare & contrast: Minnesota vs. DK

MN DG Tariff (2001-2004) - Tariffs are trade secrets!

Compare & contrast: Minnesota vs. DK

MN DG Tariff (2001-2004) - Tariffs are trade secrets!

C-BED Initiative - Utility cooperation “urged” - C-BED to count against REO (not RES) - Maximum (not minimum) tariff 1. - “Nothing in this statute shall be construed to obligate a utility to enter into a C-BED tariff”

Compare & contrast: Minnesota vs. DK

New MN Legislation: “25 by 2025” - Quantitative mandate...w/ teeth? - No priority granted to local projects

Question:

Who will support “25 by 2025” when it starts to bind?

Future developments in DK?

Future developments in DK?

“It's very difficult to make an accurate prediction -particularly about the future.”

Future developments in DK?

Electrification of the transport sector? (A Better Place) - a “storage medium” for wind - displacement of fossil fuel combustion - convert “non-point” to “point-source” emissions

Key elements of Denmark’s approach: An opinionated conclusion

1. Systems thinking 2. Access rules that enable popular participation 3. A practical agenda that encompasses security of supply and environmental ideals

Key elements of Denmark’s approach: An opinionated conclusion

1. Systems thinking 2. Access rules that enable popular participation 3. A practical agenda that encompasses security of supply and environmental ideals

Key elements of Denmark’s approach: An opinionated conclusion

1. Systems thinking 2. Access rules that enable popular participation 3. A practical agenda that encompasses security of supply and environmental ideals

Tusind tak!

Tusind tak! ...Spørgsmål?...

About GHGs:

25

20

15

10

5

0

Canada U.S.

Japan Belgium

France Brazil Denmark World Average

About GHGs:

CO2 Emissions per $1000 GDP 0.45

0.4

Annual Tons Emitted

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0

U.S.

Canada

Belgium

Japan

Denmark

France

Brazil