Esben Lunde Larsen Deputy Mayor in RingkbingSkjern Municipality

Esben Lunde Larsen Deputy Mayor in Ringkøbing-Skjern Municipality Ph. D student at the University of Copenhagen

Main points • 80 % off all windmills in Denmark are owned by farmers • The system is build to support this: - Make your windmill park, and you are on… - Financial system is present - The public electrical infrastructure is present - Public planning is present • The local acceptance is secured due to new law

How the industri started

Turbine development in size 105 m 1982 - 22 m 55 -200 k. W 30 m 45 m 66 m 1990 - 1994 - 1996 - 2000 - Year 150 -300 k. W 450 -750 k. W 1, 5 -2, 000 k. W 2– 5, 000 k. W Kapacity

Windmill industry in Denmark • Turnover of Danish businesses in Denmark 51. 1 billion Danish kroners • Global turnover of Danish businesses 91. 4 billion Danish kroners • The export of Danish businesses in 2009 41. 7 billion Danish kroners • The share of Danish businesses of the total Danish export 8, 5 percent • The employment in Denmark in 2009 24. 700 persons – in the Municipality 4. 000

Power purchase agreement • All financial figures in the following are based on a PPA ”Power purchase agreement” of minimum 8, 2 EUR cent/k. Wh, for a period aiming to return the investment

Windmills - plan and strategy • To set up windmills is a part of the vision for Ringkøbing-Skjern Municipality to become self-sufficient from energy sources by 2020 • The Municipality will be an area for renewable energy and environmentally friendly production • Besides wind the Municipality is engaged in biogas, hydrogen, wave energy, sun- and geothermal heat

Jobs • Production of windmills creates jobs • 2. 000 people are directly employed in the production of windmills in Ringkøbing-Skjern Municipality • Another 2000 people are employed in businesses delivering goods and services to the windmill industry

The Seaway West • To create business development • To improve infrastructure • Expectations of 12 to 20 new businesses in Hvide Sande • 460 permanent jobs to the offshoremarket in the North Sea • A sustainable project with focus on energy, climate and environment • Not only for the sake of Ringkøbing-Skjern Municipality

Leading in wind power development

150 metres high turbine • In the background smaller turbines, total height 30 metres

Law for Renewable Energy • Right to buy • The Green-Scheme • Loss of Value

Value for the landowner/farmer EUR 80. 000 (prepayment for 30 year rental of the land) each turbine + Annual rent of land EUR ~ 3. 000, - each turbine Satisfied neighbours given the possibility to attend the investment.

Added value for the landowner The local parish is given financial possibility to develop Ex. Danish Government, one time fee EUR 11. 500, -/MW installed Ex. Danish developer ”Local Energy A/S” making sure that the power plant will pay EUR 13. 330, - annually Ex. 6 wtg’s of 3 MW each: EUR 207. 000 from the governtment + EUR 13. 330, - annually

Participate in the project • All neighbours within a defined distance, will be invited to participate in the project, and will be given financial support to do so Example The 7 neighbours all received a financial support of EUR 16. 000. They could then individually decide wether to invest or not. The amount will depend on number of turbines, and number of neighbours.

Present example • Locals in the process of building a Village Hall, partially financed from the building of 6 wtg’s of 3 MW

The local farmer

A new Skindbjerg-project • 1996: EUR 200. 000 for a 485 k. W windmill • 0, 31 d. kr. pr. k. Wh in 2010 • Produces about 485. 000 k. Wh per year • 2010: EUR 5 million for a 3000 k. Wh windmill • 0, 60 d. kr. pr. k. Wh in 2010 • Produces about 11 million k. Wh per year