HomeCoal FiredEquipmentDanish Wind Turbine Orders to Rise Ahead of Subsidy Cuts

Danish Wind Turbine Orders to Rise Ahead of Subsidy Cuts

August 30 2002 – Danish wind turbine orders are expected to pick up dramatically in the second half of 2002 compared with the first, as investors scurry to lock into government subsidies for wind power before they’re cut, market participants say.

“Everybody knows that if you put up a turbine next year, the price you’ll get will be less,” Henning Parbo, wind power analyst with Eltra, the electricity transmission system operator for the western part of Denmark, told Dow Jones Newswires Friday.

“Nobody knows just how much less,” he added.

New turbines with a cumulative production capacity of 200 MW will be installed during the second half compared with 23 MW in the first half, Eltra estimates.

In 2001, 115 MW of new wind-power capacity were installed in Denmark. Over 6800 MW were installed worldwide.

The recently-elected right-center government has pledged to reduce the subsidy to wind power, siding with critics who contend that it results in overly high power prices and threatens Danish competitiveness.

Turbine owners presently are guaranteed a price of 0.60 krone ($1=DKK7.5380) a kWh, and the government is said to be planning to lower that to a combination of what power sells for on the Nordic spot market plus DKK0.27/kWh.

The Danish energy agency is working on the new proposal and is expected to make a recommendation to parliament in October.

Denmark is home to two of the world’s largest wind turbine makers, Vestas Wind Systems A/S and NEG Micon A/S.