Environmental Engineering Reference
In-Depth Information
1992. This included a variation of a feed-in tarif which was fixed
at 85% of the utility production and distribution costs. On top of
this tarif from the utilities, the private wind power producers
would receive a tax refund (“environmental premium”) of DKK
0.27 per kWh (3.6 eurocents per kWh). After a drop in the yearly
growth of wind capacity in the early 1990s, this initiated a strong
growth in land-based wind capacity in the last part of the 1990s.
A competing tarif scheme in Europe is called “trading of green
certificates” (TGC) with certificates issued to individual wind
power producers in accordance with a specified government target
for the total national wind power production and with sanctions
to utilities if the target is not fulfilled. In the late 1990s the civil
servants in the Danish Energy Agency convinced the minister
(Svend Auken) that the TGC scheme was in better agreement with
the dominating preference for market competition in the EU. This
was a misunderstanding (Hvelplund, 2001, and Meyer, 2007), but
the politicians decided to switch to a TGC scheme from the existing
tarif system with its several features similar to the feed-in scheme.
To add to the general confusion, this switch was never implemented
and the Danish tarif system continued to be based on a strange
mixture of features from the feed-in scheme supplemented by
environmental premiums.
Figure 6.5
Installed wind capacity, annual generation and capacity factors
in Denmark from 1977 to 2011
.
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