Wind power in the Danish liberalised power market--Policy measures, price impact and investor incentives

Jesper Munksgaard and Poul Erik Morthorst

Energy Policy, 2008, vol. 36, issue 10, 3940-3947

Abstract: Wind power has a strong position at the Danish electricity market, mainly caused by high feed-in tariffs in the 1990s. Investments in new wind-power installations on land, however, have declined dramatically after the Danish electricity market was liberalised in 1999. First, the paper describes how policy measures directed towards wind power have been redesigned to match the liberalised market. Then, we estimate the impact of the redesigned tariffs on the electricity prices. Finally, we assess whether the new tariffs make an incentive to invest in wind power. The paper concludes that the new tariffs not by itself make evidence for the actual Danish recession in new wind-power installations after the electricity reform. The main causes could include a combination of problems in spatial planning, high risk aversion of new wind turbine investors and perhaps more favourable support schemes in other countries.

Keywords: Wind; power; Electricity; reform; Policy; measures (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (95)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:36:y:2008:i:10:p:3940-3947

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