Page 69 - Danish Offshore Industry 2016

NOTES NOTES NOTES NOTES Denmark showing the cheapest way to green energy transformation Countries all around the world now have to live up to the climate targets agreed on in Paris last year. To facilitate that, the Danish Energy Board at COP 21 in Paris introduced a new economic model for calculating international so-called “green” investments. The model is to illustrate how – measured in average cost of energy – it pays to invest in Danish quality products, thereby promoting the export of green technology. The development of the energy supply often means investments in equipment and plants having a long lifespan. In its analysis of the long-term economical consequences of such investments, hereunder the eco- nomical consequences for society, the DEA has long used a calculation model for analysis of the cost of generation of electricity for relevant Danish energy technologies. The results of these analyses show that some of the sustainable sources of energy like onshore wind have a strong position compared to the traditional coal and gas based power plants. To support similar analyses in Denmark’s international cooperation countries like for instance China, the DEA is now launching an internationally oriented calculation model called “Levelized Cost of Energy Calculator” (LCoE Calculator). The model is to contribute to better eco- nomic analyses of the development of the energy supply within these fast growing economies including, too, the deriving costs to society in the shape of health and loads on the local community as well as sensitivity to future prices of fuel and CO2. The cheapest solutions in the short run may not neces- sarily offer the economically long-term cheapest energy supply. The LCoE Calculator can contribute to proving that it is economically common sense to invest in green solutions for a long-term investment perspective as its calculations comprises costs to environment and health in connection with for instance use of coal. The model supports use of Danish quality products which may be a bit more expensive, but provide for a larger and more re- liable production, have a longer span of life and / or less consumption of fuel per produced kW hour. The model clearly illustrate that it is wise to invest in high quality and effcient maintenance of wind turbines compared to DANISH erecting new, cheap and low-yielding wind turbines. OFFSHORE 2016 INDUSTRY www.offshorecontacts.com DANISH 67 / NOTER OFFSHORE 2016 INDUSTRY www.offshorecontacts.com DANISH OFFSHORE 2016 INDUSTRY www.offshorecontacts.com DANISH OFFSHORE 2016 INDUSTRY www.offshorecontacts.com DANISH OFFSHORE 2016 INDUSTRY www.offshorecontacts.com