Wind power hub: As one of the world’s pioneer in developing renewable energy resources and technology, Denmark is also a leader on wind energy, making it known as a global wind power hub.

As countries across the world are scrambling to find new forms of alternative energy to deal with the oil crisis, Denmark is already far ahead in the use of renewable energy.

Just like a fairytale, the story begins long ago — more than 30 years — with a tough trial to be overcome.

Back in 1973, Denmark, then 99 percent dependent on foreign oil sources — just like Japan — was hard hit by the oil crisis when Arab countries temporarily cut off oil exports to countries supporting Israel.

The crisis had a lasting effect, as it forced the Danish government to introduce car-free Sundays and to ask shops to switch off lights outside opening hours. When the crisis ended and other countries relaxed their stance, Denmark was one of the few nations that persisted.

Stiff regulations, ambitious developments and incentives were soon introduced.

And, again like a fairytale, this story has a happily-ever-after ending.

Denmark has managed to dramatically reduce energy consumption while maintaining solid economic growth and low unemployment.

In fact, Denmark has gone from an oil-dependent country to completely energy self-sufficient, even exporting oil, gas and electricity.

“The right decision was made by the government at the crucial time,” said Claus Hermansen, Minister Counsellor of the Trade Council in the Denmark Foreign Affairs Ministry.

“Our prime minister at that time, Anker Jørgensen, said that ‘We can have no more dependence on foreign oil in Denmark and we will look for other ways to produce energy’.

“He said that in 1973, while US President Barack Obama said only this year that ‘It will be the policy of my administration to reverse our dependence on foreign oil while building a new energy economy that will create millions of jobs’.”

Hermansen was speaking to selected Russian and Indonesian journalists, including The Jakarta Post, who took part in a Danish climate change event held in the lead-up to the climate change conference in Copenhagen in December.

One key change of the ambitious energy plans — alongside developing renewable energy from wind turbines and conserving energy — was a gradual increase in taxes on the consumption of energy from oil, natural gas and electricity.

“We impose really high energy taxes to encourage people to save energy,” Hermansen said. “If energy is not given a price, people will not appreciate it. They will simply throw it out of the window.”

Denmark is one country in which environmental taxes make the greatest contribution to GDP. In 2006, the government reportedly collected DKK78 billion (US$15 billion) in environmental and energy duties — naturally affecting the behavior of individuals and corporations. Denmark’s GDP was about $209,551 billion last year.

Hermansen said the high taxes had the effect of reminding people to switch off lights when not in use or to set the air conditioning at a higher temperature to save money.

However, he added, people would not have seen the benefits of conserving energy if the government had not taken the lead.

“It [the move] should start from the government then the people will be aware [of the need to conserve the energy].”

One notable result of the policy is that the country’s energy consumption has remained stable for more than 30 years.

Currently, renewable energy sources such as wind and biomass account for more than 25 percent of Denmark’s gross electricity consumption and 15 percent of overall energy consumption. The government aims to increase the latter figure to at least 30 percent by 2025.

One of the main features of the Danish energy sector is its extensive use of combined heat and power (CHP) systems, in which surplus heat produced as a byproduct at power plants is distributed through pipelines to heat homes and buildings through district heating systems.

CHP reduces fuel consumption by up to 30 percent and increases net fuel efficiency from 40 percent to a maximum 90 percent.

Homes used to be heated entirely by oil but today, more than 60 percent of households in Denmark are heated by district heating, the system that is said to be responsible for about half of Denmark’s energy savings. Denmark has also taken a leading role in waste management, such as in the production of heat and electricity from waste incineration.

The generated heat from waste incineration — emissions from the incineration are overall CO2-neutral and in line with the government’s plan to reduce CO2 emissions by 30 percent by 2020 — accounts for about 20 percent of district heating in the country.

The country has pressed home its advantage.

Today, Denmark is playing a pioneering role in developing renewable energy sources and technologies. It took the lead on wind energy as early as the 1980s and has maintained it since, becoming known as a global wind power hub.

Danish clean-tech exports, 6.7 percent of the total of which went to the United States, grew four times faster than other sectors in 2007.

“The climate and energy sector in Denmark has revenues of $10 billion and accounts for 9 percent of total exports, up from 4 percent a decade ago,” said Kristian Wederkinck Olesen, a communications adviser from the Climate Consortium Denmark, which coordinates business activities related to the upcoming climate change conference.

He said that Denmark had the fastest growing exports of climate-friendly technology in the world. Wind turbines from Danish manufacturers account for more than half of the installed capacity worldwide.

“Denmark hopes to quadruple exports of climate-friendly technology in the coming years with a potential of $40 billion,” he said.

Denmark’s success story also shows that economic growth and reduced greenhouse gas emissions can go hand in hand — contrary to fears stalling the big economies.

Since 1980, the Danish economy has grown by more than 40 percent while total greenhouse gas emissions have declined. Denmark has committed itself to a 21 percent reduction of greenhouse gases by 2012 compared with 1990 levels.

At the same time, the country has maintained its position as one of the world’s most competitive economies.

In 2007, the Economist Intelligence Unit, together with Columbia University, ranked the country as the best place in the world to do business. Denmark’s 5.5 million people currently enjoy a higher

GDP per capita and lower unemployment than the average for EU-15 countries.

The World Economic Forum 2008 report also names Denmark as one of the most competitive economies in the world.

Associate professor Anders Christian Hansen of Roskilde University, who is writing a book on Danish energy, wrote in the Denmark: Key Developer of Climate Solutions report that he believes the country can teach the world a thing or two.

“The rest of the world can learn about our experiences with decentralized power plants and wind turbines as well as gain inspiration from our way of applying environmental taxes.”

— Photos by Stevie Emilia

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