Electricity sector in Denmark
Encyclopedia
The electricity sector in Denmark
relies on fossil energy and new renewable energy
: wind power
, biogas
, biomass and waste. Danish average consumption of electricity pro person was 0.8 GWh less than EU 15 average in 2008. Denmark invested in the wind power development in the 1970s and has been the top wind power country of the world ever since. Danish consumption of wind electricity has been highest in the world pro person: 1,218 kWh in 2009. Denmark produced more wind power pro person in 2009 than Spain
or the UK
produced nuclear power.
Danish electricity market is a part of the Nord Pool Spot
power exchange.
Danish consumption of wind electricity has been highest in the world pro person: 1,218 kWh in 2009. The renewable electricity sources may give some protection against high annual changes. The electricity consumption fell in Denmark only 4 % in 2009-2008 recession while 7.1 % in Sweden
, 7.9 % in Finland
and 8.6 % in the UK
. In Iceland
decline was only 0.9 %. Danish average consumption of electricity pro person was 0.8 GWh less than EU 15 average 7.4 GW in 2008.
Denmark has almost no hydropower
.
and Vattenfall
. The current market structure was designed in 2003–2006 by a number of mergers and transactions. In January 2003, DONG acquires a 64% share in the regional power company EnergiGruppen Jylland, which owned 3.1% of the electricity producer Elsam. At the same year Elsam acquired 78.8% of retail sales operator NESA and later took a full control of the company. At the same time, NESA owned 36% in other electricity producer Energy E2. In 2004, EnergiGruppen Jylland increased its stake in Elsam to 24% and on 10 December 2004 DONG and Elsam announce announced their planned merger. DONG increased its stake in Elsam to 64.7% while Swedish power producer Vattenfall had acquired a blocking stake of 35.3%.
In 2005, DONG purchased municipal utilities Københavns Energi and Frederiksberg Forsyning, including their 34% and 2.26% stakes in Energi E2. In May 2005, DONG and Vattenfall agreed split of assets in Elsam and Energi E2. Vattefall received Amager Power Station, Fyn Power Station
, Nordjylland Power Station
, two decentralised gas-fired plants in Zealand, a portfolio of Danish and international wind activities, and a 30% stake in a German wind development for exchange of Vattenfall's 35% stake in Elsam and 40% stake in the Avedøre 2 Power Station
. The agreement and merger of DONG, Elsam, NESA, Københavns Energi, and Frederiksberg Forsyning to form Dong Energy was approved by the European Commission
in 2006 and consequently became in force on 2 July 2006.
) abused its dominant position in Denmark to raise prices in the period 2003-2006.
The Danish transmission system is owned and operated by Energinet.dk
. Energinet.dk was created by a merger of power grid operators Eltra, Elkraft System and Elkraft Transmission, and by natural gas transmission system operator Gastra. The merger took place on 24 August 2005 with retrospective effect from 1 January 2005. Eltra and Elkraft were communally owned by the respective region's distribution companies. The high-voltage transmission assets were transferred to the Danish State and later to Energinet.dk at no cost. Since 1997, Elkraft and Eltra operated as fully unbundled companies from the power generating companies.
The Danish power grid is connected to Norway, Sweden and Germany having 2,510 MW and 2,870 MW of export and import capacities in 2007 respectively. The actual import and export capacities were typically 60% of the nominal capacities. Studies showed inefficient markets in 2006.
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
relies on fossil energy and new renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
: wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
, biogas
Biogas
Biogas typically refers to a gas produced by the biological breakdown of organic matter in the absence of oxygen. Organic waste such as dead plant and animal material, animal dung, and kitchen waste can be converted into a gaseous fuel called biogas...
, biomass and waste. Danish average consumption of electricity pro person was 0.8 GWh less than EU 15 average in 2008. Denmark invested in the wind power development in the 1970s and has been the top wind power country of the world ever since. Danish consumption of wind electricity has been highest in the world pro person: 1,218 kWh in 2009. Denmark produced more wind power pro person in 2009 than Spain
Electricity sector in Spain
The electricity sector in Spain describes electricity in Spain. In 2008 Spain consumed electricity 88 % compared to the European Union 15 average. Spain exported about 3 % of the produced electricity in 2009. The volume of renewable electricity :rose 5 % shares of the electricity use in 2009...
or the UK
Electricity sector in the United Kingdom
The electricity sector in the United Kingdom relies mainly on fossil fuelled power and 15-20 % in nuclear power. The use of electricity declined 11 % in 2009 compared to 2004 and respectively the renewable energy per cent share of total electricity use increased 2.8 %. The annual use of electricity...
produced nuclear power.
Danish electricity market is a part of the Nord Pool Spot
Nord Pool Spot
Nord Pool Spot runs the largest market for electrical energy in the world, measured in volume traded and in market share. It operates in Norway, Denmark, Sweden, Finland, and Estonia. More than 70% of the total consumption of electrical energy in the Nordic market is traded through Nord Pool...
power exchange.
Consumption
According to the Nordel Annual Statistics the total electricity consumption was 36 392 TWh in 2006. The consumption increased about 3 % in 2001-2006 when correspondingly change was a 3 % reduction in Sweden, 2 % reduction in Norway and 10 % increase in Finland.Danish consumption of wind electricity has been highest in the world pro person: 1,218 kWh in 2009. The renewable electricity sources may give some protection against high annual changes. The electricity consumption fell in Denmark only 4 % in 2009-2008 recession while 7.1 % in Sweden
Electricity sector in Sweden
Sweden relies on hydro power and nuclear power. In 2008 the consumption of electricity in Sweden was 16 018 kWh per inhabitant. The European union average was 7 409 kWh/person....
, 7.9 % in Finland
Electricity sector in Finland
The electricity sector in Finland relies on nuclear power, forest industry black liquor and wood consumption, cogeneration and electricity import from Russia. In 2008 the consumption of electricity in Finland was 17 036 kWh/person. The European union average was 7 409 kWh/person...
and 8.6 % in the UK
Electricity sector in the United Kingdom
The electricity sector in the United Kingdom relies mainly on fossil fuelled power and 15-20 % in nuclear power. The use of electricity declined 11 % in 2009 compared to 2004 and respectively the renewable energy per cent share of total electricity use increased 2.8 %. The annual use of electricity...
. In Iceland
Electricity sector in Iceland
The electricity sector in Iceland relies on renewable energy: hydro power, geothermal energy and thermal power. Iceland’s consumption of electricity was seven times higher than EU 15 average in 2008. The majority of the electricity is sold to industrial users, mainly aluminium smelters and...
decline was only 0.9 %. Danish average consumption of electricity pro person was 0.8 GWh less than EU 15 average 7.4 GW in 2008.
Electricity pro person and by power source
| Electricity pro person in Denmark (kWh/ hab.) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Use | Production | Import/Export | Imp./Exp. % | Fossil | Nuclear Nuclear power Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity... |
Nuc. Nuclear power Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity... % |
Other RE Renewable energy Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from... * |
Bio Biomass Biomass, as a renewable energy source, is biological material from living, or recently living organisms. As an energy source, biomass can either be used directly, or converted into other energy products such as biofuel.... +waste |
Wind | Non RE Renewable energy Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from... use* |
RE Renewable energy Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from... %* |
|
| 2004 | 6,980 | 7,498 | -519 | -7.4 % | 5,613 | 0 | 0 % | 1,228 | 657 | 5,094 | 27.0 % | |
| 2005 | 6,934 | 6,694 | 240 | 3.5 % | 4,734 | 0 | 0 % | 1,225 | 734 | 4,974 | 28.3 % | |
| 2006 | 7,015 | 7,198 | -183 | -2.6 % | 5,196 | 0 | 0 % | 1,321 | 681 | 5,013 | 28.5 % | |
| 2008 | 6,912 | 6,656 | 256 | 3.7 % | 4,680 | 0 | 0 % | 1,272 | 706 | 4,934 | 28.6 % | |
| 2009 | 6,638 | 6,584 | 55 | 0.8 % | 4,636 | 0 | 0 % | 0* | 727 | 1,218* | 4,693 | 29.3 % |
| * Other RE Renewable energy Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from... is waterpower, solar and geothermal electricity Geothermal electricity Geothermal electricity is electricity generated from geothermal energy.Technologies in use include dry steam power plants, flash steam power plants and binary cycle power plants... and windpower until 2008 * Non RE use = use – production of renewable electricity *RE % = (production of RE / use) * 100 % Note: EU Renewable energy in the European Union The countries of the European Union are currently the number two global leaders in the development and application of renewable energy. Promoting the use of renewable energy sources is important both to the reduction of the EU's dependence on foreign energy imports, and in meeting targets to combat... calculates the share of renewable energies in gross electrical consumption. |
||||||||||||
Mode of production
The total installed power capacity was 12.5 GW in 2001 and in the end of 2006 12.7 GW including 9.5 GW thermal power and 3.1 GW wind power.Denmark has almost no hydropower
Hydropower
Hydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
.
Producers
Main power producing companies operating in the Danish market are Dong EnergyDONG Energy
-History:The Danish state company Dansk Naturgas A/S was founded in 1972 to manage resources in the Danish sector of the North Sea. After some years, the company was renamed to Dansk Olie og Naturgas A/S . At the beginning of 2000s, DONG started to extend itself into the electricity market by...
and Vattenfall
Vattenfall
Vattenfall is a Swedish power company. The name Vattenfall is Swedish for waterfall, and is an abbreviation of its original name, Royal Waterfall Board...
. The current market structure was designed in 2003–2006 by a number of mergers and transactions. In January 2003, DONG acquires a 64% share in the regional power company EnergiGruppen Jylland, which owned 3.1% of the electricity producer Elsam. At the same year Elsam acquired 78.8% of retail sales operator NESA and later took a full control of the company. At the same time, NESA owned 36% in other electricity producer Energy E2. In 2004, EnergiGruppen Jylland increased its stake in Elsam to 24% and on 10 December 2004 DONG and Elsam announce announced their planned merger. DONG increased its stake in Elsam to 64.7% while Swedish power producer Vattenfall had acquired a blocking stake of 35.3%.
In 2005, DONG purchased municipal utilities Københavns Energi and Frederiksberg Forsyning, including their 34% and 2.26% stakes in Energi E2. In May 2005, DONG and Vattenfall agreed split of assets in Elsam and Energi E2. Vattefall received Amager Power Station, Fyn Power Station
Fyn Power Station
The Fyn Power Station , unit 7 of 362 MW , unit 8 of 35 MW biomass), and Odense CHP plant 24 MW. Unit 7 has a tall chimney, which is the second-tallest in Denmark, unit 3 a tall chimney.- External links :* *...
, Nordjylland Power Station
Nordjylland Power Station
Nordjylland Power Station is a coal-fired power plant east of Aalborg, Denmark. It is operated by Vattenfall. The power plant consists of 3 units and a gas turbine. From these units, one is shut-down...
, two decentralised gas-fired plants in Zealand, a portfolio of Danish and international wind activities, and a 30% stake in a German wind development for exchange of Vattenfall's 35% stake in Elsam and 40% stake in the Avedøre 2 Power Station
Avedøre Power Station
The Avedøre Power Station is a combined heat and power station, located in Avedøre, Denmark just south of the Copenhagen, and is owned by DONG Energy A/S...
. The agreement and merger of DONG, Elsam, NESA, Københavns Energi, and Frederiksberg Forsyning to form Dong Energy was approved by the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
in 2006 and consequently became in force on 2 July 2006.
Competition
The Danish Council decided that the Danish producer Elsam (now DONGDong
Dong may refer to:Asian languages* Vietnamese đồng , the currency unit of Vietnam* Dong people , an ethnic minority group in China* Dong language* Dong Lake, a lake in the Hunan Province of China* Dong quai, a medicinal herb...
) abused its dominant position in Denmark to raise prices in the period 2003-2006.
Transmission
Denmark has two separated transmission systems, of which the eastern one is synchronous with Nordic (former NORDEL) and the western one with the synchronous grid of Continental Europe. The Great Belt Power Link connecting two systems was commissioned only in July 2010 and started commercial operations in August 2010. It was inaugurated on 7 September 2010.The Danish transmission system is owned and operated by Energinet.dk
Energinet.dk
Energinet.dk is the Danish national transmission system operator for electricity and natural gas. It is an independent public enterprise owned by the Danish state under the Ministry of Climate and Energy...
. Energinet.dk was created by a merger of power grid operators Eltra, Elkraft System and Elkraft Transmission, and by natural gas transmission system operator Gastra. The merger took place on 24 August 2005 with retrospective effect from 1 January 2005. Eltra and Elkraft were communally owned by the respective region's distribution companies. The high-voltage transmission assets were transferred to the Danish State and later to Energinet.dk at no cost. Since 1997, Elkraft and Eltra operated as fully unbundled companies from the power generating companies.
The Danish power grid is connected to Norway, Sweden and Germany having 2,510 MW and 2,870 MW of export and import capacities in 2007 respectively. The actual import and export capacities were typically 60% of the nominal capacities. Studies showed inefficient markets in 2006.