The energy agreement is only a minimum framework

In June, white smoke arose from the Danish Parliament. An energy settlement was agreed on, backed by all of the political parties of Parliament. The agreement ensures that the electricity demand of the Danish people can be met by renewable energy by 2030.

This was met with enthusiasm by many, not least the Port of Esbjerg.

As CEO Ole Ingrisch puts it:

"The agreement takes virtually everything we've been advocating for into account."

One of the most important decisions was to build three offshore wind farms with a total minimum of 2.4 gigawatts offshore wind power, which helps to ensure the supply chain for a few years onwards.

But it doesn't stop there. Because there are clear expectations that more is on the way.

"I think we will see a ketchup effect across parties and political fronts in Europe. A popular pressure has arisen, and it's impossible for politicians to ignore it. What can be done and how quickly?" says Ole Ingrisch and mentions the electric buses in Copenhagen as an example.

"Suddenly, Mayor of Copenhagen Frank Jensen wants electric buses sooner than planned. He, too, has noticed that people have become impatient."

Expert backs up hopes

 Brian Vad agrees the energy agreement serves as a framework to be built upon. He is a professor at the Department of Energy Planning at Aalborg University. He says the agreement does not take into account the data centers which Google, Apple and Facebook intend to build, and which will lead to a higher electricity consumption.

"And if the Danes start buying more electric cars as expected, it will necessitate initiatives within the offshore wind power, onshore wind power and solar cell areas," Brian Vad says and adds:

"In the long run, the plans to store electricity in the district heating system also provides opportunities for using even more climate-friendly power in large heat pumps in a larger district than what we have today," Brian Vad says.

Political games

According to energy spokesperson for the liberal party Venstre, Thomas Danielsen, the agreement is 'a sealed minimum'.

"And now it's up to us politicians to get cracking and see how it should be implemented," he says, thus clearing the way for an expansion of the agreement.

He is pleased with the agreement.

"I am pleased. And besides a lot of offshore wind power, I am also glad that we have established that oil and gas are still a part of the Danish energy supply," says Thomas Danielsen.

But what exactly needs to happen now, is still uncertain.

According to Thomas Danielsen, many parties have been tempted to act offensively in order to signify they are 'greener' than others. But the Environmental Economic Council backed the Government's original line, which called for establishing the first offshore wind farm and then agree on subsequent offshore wind expansions as politically desired.

"We managed to land an agreement by saying three wind farms. But I'm surprised it had to be decided now, considering the advice of the economic advisors was to postpone that decision. After all, perhaps four would be the right number. But that's what we must now look into," says Thomas Danielsen.

Energy spokesperson Jens Joel from the Social Democrats does not believe that the energy agreement is the ultimate goal.

"We haven't achieved our goal yet. Our ambitions for business, industry and climate change go far beyond this settlement."

Energy island in the pipeline

Ole Ingrisch, CEO at the Port of Esbjerg, believes in constructing a huge energy island on the Dogger Bank in the North Sea, and the Dutch company TenneT is seeking to create an international alliance to back it. About 5,000 wind turbines will be erected around the island.

"Together with Germany, England and the Netherlands, we should strengthen our cooperation and implement the plan. It's amazingly visionary, and we need to scale up in the industry. There is talk of 100 gigawatts, and only 18 have been installed so far," he says. 

Jens Joel is also preoccupied with the energy island on the Dogger Bank.

"It seems like an extremely visionary project," he says, but stresses that many things need to fall into place, before it can be done.

"If Denmark is to be the Silicon Valley of offshore wind power, which we all want, we need to scale up big time. It takes a lot to be the powerhouse for the rest of Europe, so can we not just resort to well-known technologies, but also new ones, and from that perspective the island is relevant," he says.

Thomas Danielsen is not ready to conclude anything yet.

"We need to do more than the agreement calls for, and I perfectly understand why Esbjerg and others are eager to get started. But let's see," he says, stressing that the North Sea is a vast area with many possibilities.

"We are talking about an area that potentially can produce plenty of gigawatts. So the possibilities are many," he says.

International vision

In order to achieve the ambitious green energy goals, Ole Ingrisch also believes that the Danish energy policy should be more internationally oriented.

Both the Liberal Party Venstre and the Social Democrats agree. 

According to Jens Joel, the Social Democrats are, among other things, working on a model where the shallow water depths in the Danish sector of the North Sea can be used for a kind of rental similar to the outsourcing the Danish Government has done with the oil.

"This could be useful to German companies, which do not have enough space themselves, but need the energy. It can also create a breeding ground for new wind farms," he says.

Thomas Danielsen believes that the green conversion must be ensured through an energy union at European level.

"Today, for instance, we buy a lot of electricity from Norwegian hydropower. But because we've had a dry summer, we've been forced to buy a certain amount of less climate-friendly electricity from Germany. The objective must be that we extend our cooperation, so we can buy and sell from and to various countries. Going green is fine, but ultimately we need to ensure we can get electricity in the first place," Thomas Danielsen says. 

Must stay ahead

Jens Joel believes decisions should be taken in the near future to ensure Denmark's international leadership on offshore wind power.

"We want to lead and not be as backward-looking as the Government. It's bad for both climate and the business community if we become the run of the mill in the EU. We've spent 40 years on becoming a leading wind farm nation, proven by companies like Vestas and Siemens and many others at the Port of Esbjerg."

Esbjerg is unique on a global scale

According to professor Brian Vad, employment within offshore wind will increase in the years to come. Not just because of the development in Denmark, but due to the international focus.

In this context, he believes Esbjerg has a unique chance. Denmark is not the only nation where offshore wind power is undergoing massive development. The German part of the Wadden Sea and the Netherlands and France also boast a huge supply.

"The Port and the businesses in the area have consistently increased their know-how. Esbjerg possesses competencies that are unique worldwide. It gives a head start compared to enterprises in other parts of the world," Brian Vad says.

"If companies in Esbjerg present their services in the near future and get a foot in the door, they have a great opportunity to use their know-how in foreign contexts, too. My advice would be: Present yourselves. That will give you a unique chance," Brian Vad says.

A long-haired hippie

CEO Ingrisch is aware that some people will roll their eyes when he talks about the energy island at Dogger Bank. But he believes wholeheartedly in the project and has tried it before.

"When I came to Esbjerg and talked about offshore wind power, people laughed at me and called me a long-haired hippie, even though I was bald in those days, too," Ole Ingrisch says with a grin.

He believes this way is unavoidable if Denmark is to deliver green energy on larger scale.

"The way I read the political climate, I think, in fact, that the amount of visions is accelerating. The Government suggested 800 MW offshore wind power, but we are going to end up with 2.4 gigawatts. 15-20 years ago the process went slowly. And we're not talking about Denmark only.  In 20 minutes the Japanese Secretary of the Interior will enter my office to learn about offshore wind power. This is because it's not only the environmentally right thing to do, but also the economically right thing."

Ole Ingrisch reminds us that one of the alternatives to offshore wind power, nuclear power, requires 25-30 years of planning.

'It makes no sense to think in that direction, when we can put up a wind turbine in three months. I don't care what they call me; this is what it's going to be like,' says Ole Ingrisch.