Electricity cost effects of expanding wind power and integrating energy sectors

Abstract

Recently, questions have arisen in Denmark as to how and why public funding should be allocated to wind power producers.  This is, among other reasons, due to pressure from industrial electricity consumers who want their overall energy costs lowered.  Utilising existing wind power subsidies across energy sectors may be an effective means of dealing with these concerns.  The following article takes the case of a community owned renewable energy project as a microcosm for the entire Danish energy system.  The local project seeks to integrate energy sectors so as to create physical and financial conditions which could allow wind power producers to reduce their reliance on subsidies.  It is found that the strategy may be effective in lowering the overall energy costs of electricity consumers.  Further, it is found possible to scale up this strategy and realise benefits on a national scale.