GREEN GROWTH: FROM RELIGION TO REALITY - Sustainia

Chapter 4imports significantly more desirable than dependenceon imports of oil. In the 1990s the share of natural gas inelectricity production and heat generation gradually increased.Figures 1 and 2 show electricity production andfinal energy consumption by fuel historically. (Hansen,2003; Grohnheit, 2001; De Lovinfosse, 2008).Related to the gradual substitution of fuel input, explorationof natural gas and oil in the North Sea was accelerated,which helped achieve the objective of energysecurity, as Denmark increased its production of both,and finally became a net exporter of oil and natural gas in1995, see figure 3 below. According to the Danish EnergyAuthority, Denmark is expected to remain a net exporterof natural gas until 2020 and oil until 2018. (DEA 2010;DEA 2011:16)1.2.2 Support for alternative sources of energySubstitution and exploration largely achieved the objectiveof energy security. Another important element of the firstenergy plan however, was to explore alternative sources ofenergy. Initially, nuclear energy was the favoured optionof policy-makers and the electricity industry, but a strongand broad coalition of civil society movements opposingnuclear power and supporting wind power successfullystalled plans to develop nuclear capacity, and in 1985 Parliamentpassed a moratorium on nuclear energy. “In 1979,energy and environmental politics, in that order, were thetwo policy areas (out of 20), which most Danes consideredthemselves ‘very interested’ in” (Andersen 2008:17).2The coalition strongly favoured wind rather than nuclearenergy, and with a geography that enabled wind – aflat country with lots of wind potential – and a history ofexperimenting with windmills dating back to the 1890s,the result was a gradual increase of wind as a share of electricityproduction (see figures 2, 3, 4 and 5).Early policies supporting local cooperative ownershiphelped strengthen public support for wind power productionand ease barriers to implementation of projects. ByPrimary energy production 1980-2009PJ140012001000800600400200Crude Oil Natural gas Renewables01980 ´85 ´90 ´95 ´00 ´05 ´09Figure 3: Production of primary energy measured by energy content.In other words: Oil and natural gas production are past their peaksand expected to be exhausted by 2018 and 2020 respectively.Cumulative wind capacity 1980-200970006000500040003000200010000Figure 4: The number of windmills deployed increased steadilyfrom 1980 to 2000 but began declining as developmentshifted to off-shore projects. The cumulative capacity however,kept increasing.Source: DEA 2010:9# of WindmillsCapacity (MW)1980 1990 2000 2008 2009the early 1990s 120,000 people, out of a total population ofroughly 5 million, were registered as owners of wind turbines– either individually or through cooperatives (Mendonca,Lacey, and Hvelplund, 2009). While the trend oflocal ownership has been reversed since the late 90s, itwas a crucial part of the initial success of wind powerdeployment and helped build a foundation and broadengrassroots support for the strong wind power industrythat exists in Denmark today spearheaded by the globalleader in windmill markets, Vestas. Political support forrenewables consisted of electricity taxing schemes, investmentsubsidies, and RD&D support for renewableenergy. The total share of renewables gradually increasedto roughly 27% of electricity production and 20% of finalenergy consumption in 2009. (Hansen 2003; DEA 2010;Hvelplund 1997; Toke 2002; Loring 2007; Karnøe andBuchhorn 2008; Toke, Breukers, and Wolsink 2008)1.2.3 Energy efficiencyThe third category of energy policies during the first periodof Danish energy policy was energy efficiency policies.By mandating energy efficiency in buildings, taxingdelivered energy, and subsidizing energy efficiencymeasures; Denmark reduced specific heat demand bynearly 40% between 1981 and 1997. Overall CO2 intensityhas been cut by 50% from 1980 to 2006 (Grohnheit2001; DEA 2009). Crucially, as pointed out above, theshare of natural gas in electricity production and heatgeneration increased as energy efficiency policies rewardedcombined heat and power (CHP) plants usingnatural gas and biomass. This brings us to the final categoryof energy policies during the first part of the story:infrastructure investment. (Grohnheit, 2001)2 Translated by author.Source: DEA 2010:634