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support for wind power would eventually sire a domestic wind power manu-
facturing industry that would become Denmark's third-largest export sector.
hese cumulative beneits placed wind power in a decidedly attractive light.
By the end of 1990s (the second decade of wind power development in
Denmark), electricity production costs for the most eicient wind turbines
(600 kW) at average wind quality sites were estimated to be approximately
€0.043 per kWh, including €0.006 per kWh for backup. In comparison, genera-
tion costs at conventional power plants were running in the range of €0.032-
€0.034 per kWh. 102 With the price of carbon credits under the European
Emission Trading Scheme ranging between €8-12 per ton of carbon, a gradual
convergence between the cost of wind power and the cost of coal took place in
the 1990s—wind power was becoming an economically rational alternative.
4.4.3 Technological Landscape
Favorable geographic conditions in Denmark enable rich exploitation of
wind power technology. As mentioned earlier, Denmark is a sparsely popu-
lated nation with large expanses of treeless agricultural land that is ideal for
wind turbine siting. Furthermore, Denmark's windswept North Sea loca-
tion and its undulating coastline make it ideal for ofshore wind power. One
study has estimated that enough economically exploitable ofshore wind
power potential exists to provide at least 20 TWh per year 103 —approxi-
mately 60% of 2009 electricity consumption levels.
It is conceivable that wind power in Denmark would be underexploited
if it wasn't for the fact that prior to the mid-1980s, the nation also lacked
conventional energy resources. Consternation over the precarious depen-
dence on foreign fossil fuel supplies catalyzed eforts aimed at improving
self-suiciency in energy. his included providing funding for alternative
energy R&D and inancing fossil fuel exploration eforts that would eventu-
ally discover rich deposits in the North Sea. 104
Aside from favorable geographic conditions, a major contributing factor
to wind power development in Denmark stemmed from the technological
development strategies exhibited by domestic wind turbine manufactur-
ers. As mentioned earlier, Denmark's wind turbines were predominantly
designed by irms that were accustomed to manufacturing reliable, easy to
maintain machinery for farms. 105 hese irms took a safe technical path in
regard to turbine development—producing machines that were both reli-
able and technologically unsophisticated. 106 he result was that Denmark's
wind turbines delivered what they promised in terms of performance.
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