Denmark
Photovoltaic technology status and prospects
Flemming Kristensen, Energimidt, Denmark
Peter Ahm, PA-Energy A/S, Denmark
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Last updated: 30 May 2004

General Framework

Fig. 1 - 1,02 kWp PV system on a house from Friland, an experimental area in Denmark for alternative buildings. Denmark has presently no national energy plan, but the governments energy policy builds on a vision of a fully liberalized energy market supported by a framework, which underpins high consumer and environment protection, energy efficiency, subdued development in energy prices and high security of supply both in the short and long term. The vision focuses inter alia on the ongoing development of efficient energy technologies both nationally and in the EU.
The government wishes to strengthen the research community and the development of new and promising energy solutions.

The Kyoto protocol and the consequent EU agreement on GHG reduction targets has lead to a Danish commitment to reduce GHG emissions by 21 % in the period 2008-2012, compared to the base year 1990. The market for CO2 certificates is seen as the most cost-effective way to reach this target.

Renewable energy is not only a future option, but very much a present and considerable element in the energy supply: by end of 2003 about 25 % of the national electricity consumption is expected to be generated by renewable energy sources. Ongoing research, development and demonstration of new energy solutions, including renewable energy sources, have high priority in this vision; the two main objectives being the development of a future environmental benign energy system and a high degree of security in the energy supply many years ahead.

Photovoltaic technology (PV) is not specifically mentioned in the government’s energy policy, but during 2003, the Danish Energy Authority (EA) has elaborated a draft national strategy on PV in collaboration with the electricity sector, the industry and other key stakeholders. This PV strategy is expected to be finalized early 2004, and will include the fields of research, development and demonstration. Deployment activities in support of the PV strategy are expected to be developed during 2004, and thus, an overall framework for the coordination of PV development and deployment in Denmark is expected to be in place shortly.

Key actors have been identified as: utilities – carrying out small and large R&D and in particular, demonstration projects; network operators – identifying potentials and unresolved issues related to PV in a large network; universities and institutions – carrying out R&D activities on PV technology and its application & integration; professional consultants – catalysing a broad range of PV projects; industry – developing and manufacturing PV components and systems; NGO’s – disseminating information and the general public – exhibiting steadily increasing interest in and willingness to buy PVs.
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National Programme

Fig. 2 - 2,04 kWp PV system on a typical residential house located the northern Jutland. Denmark has no unified national PV programme, but a number of projects are supported mainly by the Danish Energy Authority and via the Public Service Obligation (PSO) of Danish network operators.

PVs have been included in the action plan of the Danish Energy Authority (EA) since 1992 and have received increasing attention in the consecutive three-year Solar Energy Action Plans. Since 1992, the Renewable Energy Development Programme of the EA has supported about 125 PV projects, and by the end of 2003, about 2 MW have been installed in the context of demonstrations plants. A 300 roof-top project, including 750 kWp, was launched early 1998 and was completed by end of 2001. A 1 000 roof-top programme was launched late 2001 as a follow up; this programme targets a mix of general cost reductions, increase in end-user payment and promotion of small roof-tops. Only a few weeks after the announcement of the programme, the SOL 1000, more than 3 000 house owners had registered their interest. However, uncertainty about the programme due to change of government and increased demand for end-user payment have introduced a delay of almost a year in the programme implementation. By the end of 2002, the programme reported a portfolio of some 1 500 house owners expressing firm interest in the programme and by end 2003, about 250 kW have been implemented, stimulated by an investment subsidy of 40 % of the turnkey system cost; the average turnkey system cost being EUR 4,50/W.

A special support programme for PV applications in the commercial sector, funded by the CO2 tax on electricity, was set up early 1998. The support includes a subsidy of up to 40 % for the turnkey system costs. The calculation of the actual subsidy will be in favour of high yield installations. This programme has so far not been very successful, as the commercial sector seems to regard an incentive of 40 % as inadequate, and during the last few years no projects have been implemented using this support mechanism.

Net-metering for privately owned PV systems was established in mid-1998, for a pilot-period of four years. In late 2002, the net-metering scheme was extended another four years, up to the end of 2006. Net-metering has proved to be a cheap, easy to administrate and effective way of stimulating the deployment of PV in Denmark. However, the relative short time window of the arrangement has so far prevented it from reaching its full potential. A small project has been launched to identify the best possible institutional arrangements around PV systems on multi-family buildings and housing.

In late 1999, a new three-year programme, 2000 – 2002, to promote building integrated PVs in apartment buildings and institutions was initiated. The programme included both the development of new integration methods and new components and demonstrations. By the end of 2001, six calls for proposals had been carried out resulting in 52 proposals, of which 23 have received support. The programme did create interest for PVs in the Danish building industry. However, programme funding was abruptly stopped primo 2002.
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Fig. 3 - Achitects’ drawings and visualization of the Sol 1 000 project.

Fig. 3 - Achitects’ drawings and visualization of the Sol 1 000 project.

Fig. 3 - Achitects’ drawings and visualization of the Sol 1 000 project.

Research, Development and Demonstration

During 2003, the government announced additional financial support to the new R&D programme started in 2002. Over a 3-5 year period, more than 150 MDKK are allocated to renewables. However, it is still too early to say to which extent PVs can benefit from the programme.

R&D activities into PEC cells (Grätzel type cells) are ongoing at the Danish Institute of Technology. This activity has in 2002-03 been supported by the PSO of the Danish network operators. At the Risoe National Laboratory, basic research into polymer based PV cells is ongoing.

In mid-1995, the Photovoltaic System Laboratory (PVSyslab) was established in collaboration between Risoe National Laboratory and the Danish Institute of Technology. The main function of PVSyslab is to certify the quality of PV systems and their installation and to help industry develop better products. The PVSyslab is also engaged in PV system monitoring and in the upkeep of a national knowledge base on applied PV technology. The PVSyslab has ongoing activities in the field of technology cooperation with developing countries; particularly in the setting up of local quality assurance schemes and test laboratories.
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Implementation

The potential for large scale deployment of PVs in Denmark has been identified as building integrated systems.

The SOL 1 000 programme run by the utility EnergiMidt, which as mentioned above, intends to demonstrate low cost and architectural acceptable integration of PV technology primarily on existing single family houses, has implemented about 250 kW during 2003. The same project focuses on the gradual increase of end-user payment; thus, paving the way to a commercial market with no investment subsidy. A third objective is to disseminate information and experience on PV roof-top deployment to the Danish distribution utilities. Several projects for building integrated PV systems, including commercial buildings, apartment buildings and schools have been implemented; typically in the range of 2-15 kWp.

A new utility initiative has been launched in 2003 by Copenhagen Energy: the sale of certified PV produced electricity without any subsidies or other external support. The utility contracts to buy all electricity from new PV systems for the next 20 years at commercial terms, and tries to sell the same electricity to the consumers in small standard packages including a certificate. Even though the end-user cost of the certified PV electricity is 3-4 times that of standard electricity – ironically, partly because of the present tax and duty structure – the scheme reports a small, but growing success.
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Industry status

The company Topsil, which by using a float-zone technique, produces high purity Silicon (Si) ingots for the semiconductor industry, announced in 2002 their intention of developing a low-cost float-zone manufacturing technology that would enable the company to offer high purity Si to the PV industry. Initial efforts indicate that +20 % efficient cells based on the float zone Si may be competitive in the near future.

R&D efforts are beginning to exhibit commercial results in terms of export. A commercial break through was announced in 2003, also by Topsil. It is now seeing the first commercial results of its R&D into low-cost float-zone processing and shall supply float-zone Si for high efficiency PV cells, on a commercial basis.

Inverter technologies have been R&D' for some years for both fuel cell and PV applications. For the latter, a commercial break through was also announced in 2003, by the Danfoss related company Powerlynx, which reports to have received its first multi-million Euro order.

PV Si cell production stopped in Denmark in 1996. A single Danish module manufacturer (Gaia Solar) with an annual capacity of about 1 MWp per shift has existed since 1996. A few other companies producing tailor-made modules such as window-integrated PV cells can be found.

Some medium to large scale industrial corporations long established in the building industry, such as Velux Industries and Dansk Eternit, continue their R&D into how to integrate PVs in their main stream products. The products are currently under field tests in the context of demonstration projects. New companies are also exhibiting interest in this field.

There is no PV relevant battery manufacturing in Denmark at present.

A few companies develop and produce power electronics for PVs, mainly for stand-alone systems for the remote-professional market sector such as telecoms, navigational aids, vaccine refrigeration and telemetry.

A number of companies are acting as PV system integrators, designing and supplying PV systems to the already competitive international market sector of remote stand-alone applications. Consultant engineering companies specializing in PV application in developing countries report a slowly growing business area.
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Market development

Market development incentives already in place are mentioned above under the National Programme.

Total PV business volume in 2003 cannot be estimated with any degree of accuracy primo 2004, due to the above mentioned new business developments in the fields of Si feed stock and inverters, the details of which are not yet public. However, a rather sharp increase of the 2002 figure of 10 MEUR is expected.

By the end of 2003, the cumulative installed PV capacity in Denmark (including Greenland) is estimated to be about 2 MWp; an increase of almost 20 % when compared to 2002.
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Future Outlook

The increasing government funds allocated to R&D into renewables are expected to give a boost also to the PV sector, but – if left alone - may lead to an imbalance between R&D efforts and demonstration, as the eventual R&D results need support to be demonstrated and reach the market. However, it is the hope, that the earlier mentioned effort to establish a national PV strategy and consequent deployment schemes may succeed in creating a more coordinated and unified approach to PV in Denmark.

The SOL 1 000 project targeting building integrated PVs mainly on single family houses but also addressing apartment houses and institutions is also expected to lead to ongoing availability of government funds for PV demonstration and deployment. Without funding and a clear public support to PVs for yet some years to come, the sector will quickly diminish.

However, the trend towards commercial sustainability for PVs is seen as ongoing and with the objective realistically within reach. Projections and scenarios now under study seem to indicate, that with the continued global technical and economic development of the PV technology, with a more permanent net-metering scheme in Denmark, and with unchanged development of the Danish end-users increasing willingness to invest in PVs, a commercial market for PV roof-tops in Denmark will emerge around 2009-10.
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Further reading about Denmark

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