System and market integration of wind power in Denmark

Henrik Lund, Frede Hvelplund, Poul Alberg Østergaard, Bernd Möller, Brian Vad Mathiesen, Peter Karnøe, Anders N. Andersen, Poul Erik Morthorst, Kenneth Bernard Karlsson, Marie Münster, Jesper Munksgaard, Henrik Wenzel

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    Abstract

    Denmark has more than 10 years’ of experience with a wind share of approximately 20 per cent. During these 10 years, electricity markets have been subject to developments with a key focus on integrating wind power as well as trading electricity with neighbouring countries. This article introduces a methodology to analyse and understand the current market integration of wind power and concludes that the majority of Danish wind power in the period 2004e2008 was used to meet the domestic demand. Based on a physical analysis, at least 63 per cent of Danish wind power was used domestically in 2008. To analyse the remaining 37 per cent, we must apply a market model to identify cause-effect relationships. The Danish case does not illustrate any upper limit for wind power
    integration, as also illustrated by Danish political targets to integrate 50 per cent by 2020. In recent years, Danish wind power has been financed solely by the electricity consumers, while maintaining production prices below the EU average. The net influence from wind power has been as low as 1e3 per cent of the consumer price.
    © 2012 Elsevier Ltd. All rights reserved.
    Original languageEnglish
    JournalEnergy Strategy Reviews
    Volume1
    Pages (from-to)143-156
    ISSN2211-467X
    DOIs
    Publication statusPublished - 2013

    Bibliographical note

    This study is part of the research project Coherent Energy and Environmental System Analysis (CEESA), partly financed by the Danish Council for Strategic Research. The rest has been financed by the
    companies and institutions of the authors.

    Keywords

    • Wind power
    • Wind power integration
    • Wind power cost
    • Energy system analysis
    • Electricity markets

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