Jyllands Posten Analysis by Michael Stenvej - 26-04-2016 "vm industry sees red"
WIND: The Danish Minister of climate and energy Lars Christian Lilleholt is talking about creating peace on the energy agreement from 2012, but he also talks about saving 5 billion green tax Danish kroner by dropping wind farms already agreed upon. The Save delighted Energy minister gets wind industry to see red (furious).
Climate and Energy minister Lars Christian Lilleholt have set tempers boil in the wind power industry to an extent
so dissatisfaction with the Liberal energy policy is closely to complete. "The Minister's actions in this case is unprecedented, "
said a coarse Jan Hylleberg, CEO in the Danish Wind turbine (wt) Association.
The reason is a message that the bill businesses and private households for the green conversion is simply has become too high.
Already last year the Minister handed violently afterthe green transition on the basis of new figures showing that the green bill to companies and electricity customers - The so-called PSO bill - in 2015 was to land record high 8.4 billion. D-kr.
When the Minister's announcement now get the wind turbine industrysee red/furious, it does that according to industry connoisseurs especially - along with that Lars Christian Lilleholt now goes one step further and chains the galloping PSO bill together with his half-hidden threats to drop an agreement to build coastal offshore wind farms in a total of 350 megawatts (MW) by 2020.
The agreement on the coastal offshore wind farms are part of thethe 2012 energy agreement, which Venstre (Denmark’s Liberal Party - a very right-wing one) willingly put his signature despite the prospectto a green billion bill to electricity customers and aims to establish 500 MW coastal wind farms.
Plans scaled down
Since then the off-shore coastal plans have shrunk. It happened in July 2014 when the then SR ( soc dem - radical) government with votes from the "blue" (right wing) side. The left-wing parties in the parliament launched a "growth plan" to curb the escalating green fees. The result was that the coastal off-shore plan was throttled down to 400 MW, of which 50 MW was earmarked special "test turbines". In one stroke the wind industry thus witnessed that plans for coastal wind farms were round shaved with 30 per cent. It is inter alia in this light, says observers, that one must see the rancid reports from Danish Wind Turbine Industry. The events surrounding Growth Agreement is also clearly showed the wind turbine industry,that today's threats may well be tomorrow's realities in apolitical energy landscape where agreements are not bullet proof. Better is hardly for the Danish Wind Turbine Industrythat the Climate and Energy Minister heads for an energy policy riding on a promise of 'green realism". And it is certainly here, that Lars Christian Lilleholt seriously smells blood.
By dropping the coastal offshore wind farms will minister namely save companies and residential electricity customers
for green taxes close to 5 billion Dkr. from 2019 - 2031, shows calculations from the Danish Energy Authority (DEA).
So far the football however is on the climate and Energy Minister's playground.
Although Social democrats and the Radicals (a center-right party) for less than two years ago were the bearers in the fight against the growing PSO bill now call the minister's attack on the coastal off shore wind farms 'very frustrating'.
Therefore, the 10,000-kroner question is, whether the Minister has the courage to kick the ball directly into the goal by terminating the four years energy agreement with prospects that businesses and private power customers just in the period 2016-2020 have to pay 38.8 billion Dkr. for the green transition.
If you ask the Liberal think tank Cepos, it is urgent for the government to get launched the promised "Green Realism"in energy policy.
A look at the Liberal Party's previous course relative to the controversial energy agreement reveals however, that the climate and Energy Minister hardly dares to take the first step, says messages from several sides. One reason is that LA, K, DF and Liberal party in February 2014 demanded the then SR-Government to renegotiate the energy agreement, because there was a need to 'an adjustment of Danish limate and energy '. The renegotiation never came, but without The Conservatives, Danish People's Party or the Liberal Party demands to erminate the energy agreement.
Encounter with energy price.
Since the the Liberal Party last summer took office, waited many, therefore, that there now came a showdown with the green energy course. They did also in the form of promises on 'green realism'. Liberal Party refused to touch the 2012 energy agreement because SR-growth agreement in 2014 had secured the desired PSO breaks for business. "It is therefore a misconception if you think I as new minister throws himself into a battle immediately to break the energy agreement with a broad parliamentary majority behind, and ensures clarity and calmness the Danish energy policy until 2020, "stated Lars Christian Lilleholt in July last year in a letter to the editor in Jyllands-Posten.
Green expenses increased
Despite the growth plan's promise on PSO discount to business is corporate Green expense in 2015 and 2016 increased 63 per cent.
At the same time, the "clarity and tranquillity 'on energy agreement is questionable, says Denmark's Wind turbine industry. Only a few weeks ago, wind people and potential wind investors got their morning coffee stuck in their throat. It happened when Lars Christian Lilleholt out of the blue postponed provision of a coastal wind farm at Sejerøbugt to September.
Now followed the minister, who Friday in New York signed UN Agreement on a showdown with the global heating, toenumerate the coastal offshore wind turbines in DK as a golden opportunity to 'get cut bill (the green bill, ed.)'.
The Energy Agreement from 2012 with the 350 MW coastal wind farms will be running to 2020.
Editorial, 1st section, page 20
Price for the green transition PSO system came into force in2001. PSO stands for Public Service Obligations.
PSO charge - popularly known the green electricity tax - is the payment, collected via the electricity price to various forms of support renewable energy such as wind turbines, photovoltaics and use of biofuels.
The annual expense is partly controlled of developments in electricity prices and the weather.
It provides large fluctuations in the annual PSO bill. The recent years, increasing amounts of wind power in the grid for example has been helping to push the bill upwards.Everyone pays PSO levy, both large and small enterprises and private households. The tax collected directly through their electricity bills via the electricity price as an amount per kilowatt-hour (kWh).
Businesses pay about 60 per cent by PSO bill, while private households pay about 32 per cent. For business, it means a 2016 bill of about 4.4 billion Dkr. Source: www.energinet.dk
The energy agreement from 2012
It was a united Parliament which March 2012 voted for what the then Climate and Energy Martin Lidegaard (R) called a historic agreement. Only Liberal Alliance stands outside the energy agreement.
The agreement paves the way for a definitive goodbye to the use of coal, gas and oil in 2050. The first step is a massive expansion of wind energy up to 2020, and by 2035, all electricity and heat comes from green energy sources such as solar, wind and biofuels.
The agreement include construction of two offshore wind farms, Horns Rev 3 and Kriegers Flak, totalling 1,000 megawatts (MW).
At the same time, the aim is to place 500 MW coastal off shore wind farms, which in July 2014 was changed to 350 MW and 50 MW test wind turbines.
The present energy agreement is in force 2012 - 2020.
AND THEN THE EDITORIAL:
Jyllands Posten (JP), Denmark - 26-04-2016 EDITORIAL
Wind on the support
Editor: Jørn Mikkelsen (chief), Pierre Collignon and Steen Rosenbak; CEO: Stig Kirk Ørskov
Publisher and printing: JP / Politiken Hus A / S; Grøndalsvej 3, 8260 Viby J Phone 87 38 38 38.
Ever since the first small wind turbines began supplying electricity to the grid in Denmark, the Danes again
and again were told that the industry only in a few years needed financial support - then would wind turbines with the usual depreciation rules be able to compete in equal footing with other electricity-generating energy. It is now four decades ago that the so-called "wind turbine adventure" began and Danish consumers pay today more than ever in direct and indirect financial support to wind turbines. Not only that: according to Eurostat the Danish consumers pay the far the highest electricity prices in
Europe: Dkr. 2.28 per kWh compared with an EU average of 1.55 Dkr.
This real reality got the weekend for Climate and Energy Lars Christian Lilleholt to note that the bill for the so-called "green transition" is rampant. This applies; the aid will be needed to proposed and strongly disputed coastal wind turbines. Instead, the Government believes it may become necessary to establish more onshore wind turbines, which does not reduce the problems, because especially with the destructive, low-frequency noise. The finding comes from new calculations, which shows that public subsidies paid by electricity consumers via the so-called PSO tax will skyrocket if you follow plans to establish a large number of up to 200 meters high wind turbines in coastal areas.
Today, Danish consumers pay 25 øre / kWh in the PSO levy or a third more than the spot price of 1 kWh of electricity last Monday 18 øre. On top of the PSO levy paid an electricity fee to the state at 89 øre/kWh plus VAT (25 %, MJ).
In the period from 2012 to 2020, Danish consumers are at risk to end up having to pay 65 billion Dkr. in the PSO levy, shows a note from the Climate and Energy Ministry, and the responsible Minister quite wisely finds unacceptable.
Since the announcement, it has been no shortage of criticism that Climate and Energy Minister thus allows questioning the reasonableness of the Danish consumers, filled with lies on lies on lies about the renewables market economic competitiveness.
SF-chairman Pia Olsen Dyhr even accusing the Minister for be out in a 'substandard errand', while the Social Democratic Party climate spokesman Jens Joel 'not at all understand what Minister is doing.
"Wind Industry CEO, Jan Hylleberg, speaking stridently that "the Minister's actions in this case is unprecedented, "and believes it "will send shock waves through the energy sector 'If a majority in Parliament either cut in or choose to abandon the off shore coastal wind turbines.
Although it may be argued that it is at an advanced stage in the process, the government pulls the emergency brake, but it would be liberating, if for just once, the Danish electricity consumers and neighbours to wind turbines was taken of rather than only the Danish Wind Industry and its argument resistant claqueurs.
Since the "green transition" obviously has ended up as a perpetuum mobile, fuelled by an enduring funding in the billions Dkr. per year in Denmark alone. Parliament should remove the state electricity tax.
It is certain that it is not possible forever to fill people with the lie that wind turbines can compete on equal footing with other forms of energy when the reality is that wind power - for the first 40 years of development - for time and eternity will require billions in direct and indirect support.