Power System Paradigm Shift The Danish Experience with

Power System Paradigm Shift The Danish Experience with Wind Generation 5/20/2010 Ken Dragoon

Denmark Leads the Way

1974 Energy Crisis • 1974 world energy crisis– 90% of all Danish energy came from burning oil or oil products (diesel and gasoline). • Denmark banned driving on Sundays.

Denmark’s Dedication to Purpose • Denmark dedicated itself to becoming free from use of fossil fuels (oil, natural gas, gasoline, and diesel). • In 1985 Danes voted to prohibit all nuclear power • The government, educational institutions, heads of corporations, and research institutions are aligned in solving this problem. • Main source of energy will be wind power. – 20% of Danish electric power comes from wind, in ten years half of all electric power will come from wind power, nearly all of which will be offshore.

Necessary Paradigm Shift • Henrik Bindslev, Executive Director of the Risø National Laboratory: – We are moving from a power system in which supply responds to demand, to a system where demand will respond to supply. • Electric Vehicles – Introduced this Fall will be exempt from the usual vehicle tax. • District Heating Systems – Will install electric resistance heating elements to store wind when necessary.

No Contract Paths on Transmission • All physical purchases and sales are made in the organized trading market. • All physical schedules across tie lines are set by balancing area operators (not purchasers or sellers). • Bilateral contracts guaranteeing prices between buyers and sellers are financial-only instruments. • Congestion?

Results • Denmark sustained 40% economic growth while reducing carbon emissions by 15%.