Minister of Climate: A strong home market is export driver for offshore wind

The cost of building offshore wind farms in Denmark needs to come down, and the country's politicians all share responsibility in making that happen. Stable framework conditions and a strong domestic market are key to lower costs and to improving Danish export opportunities, according to Denmark's Minister for Climate, Energy and Building Rasmus Helveg Petersen.

As it is his remit, the Minister is not prepared to disclose the Government's target for what the price of offshore wind should be. Still, he makes it clear that future wind farms will have to become less expensive to build than the recently opened Anholt Offshore Wind Farm was.

“I'm not going to give you a specific price, because we're in the middle of inviting tender bids for the Horns Rev III wind farm, and any price indication on my part could have implications for the bidding process. I will say, however, that my goal is to see much lower costs than what we saw for the last offshore wind farm that was built.”

Aiming for economies of scale

“To do that, we need to cut costs in every link of the offshore wind farm supply chain,” the Minister continues.

“Ever since Henry Ford began to spitting out cheap cars from his assembly lines, industrialising and standardising have been core objectives for every industry. Obviously, wind turbines are no exception, and the industry is going all out to make it happen. Government can do its part by facilitating a process that provides sufficient time, minimises risk and allows economies of scale.

Political responsibility

The Minister points out that the political objectives in expanding the generation of offshore wind power are essential in keeping the momentum going.

“It is up to us to create a framework that industry, pension funds and other investors will find attractive so they will want to invest in offshore wind, even though we still don't have a technology that makes wind power competitive with, say, coal-fired power plants, a technology that is 100 years old. It's important to understand that when we invite tenders for future Danish offshore wind farms, it really is about building an industry for the future that can use assembly line techniques to manufacture offshore turbines and foundations,” explains the Minister.

“It's also important to understand that the doubts and scepticism that some parties are trying to raise in respect of these upcoming tenders represent a risk to prospective investors. It could drive up prices.”

Denmark should have a flagship role

Denmark's offshore wind industry has become one of the most global in the world. Not only do they have market shares in all major markets: Danish operators also still possess a huge growth potential, both in their domestic market and internationally.

Building a strong domestic market will allow Denmark to show the way for the rest of the world,” the Minister stresses.

“One of the foundations of retaining and growing its market share in terms of wind turbine production is to set a good example. For Denmark, that means setting a flagship example and showing the world that this is a technology worth investing in. A strong domestic market paves the way for exports.”