Denmark, Photovoltaic technology status and prospects - Contribution to the Annual report 2004

Denmark
Photovoltaic technology status and prospects
Flemming Kristensen, Energimidt A/S, Denmark
Peter Ahm, PA Energy A/S, Denmark

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General Framework

Fig. 1 - The Tjornehojskolen School, Copenhagen. A fully integrated PV system of 17,4 kWp.

Denmark has presently no national energy plan, but the government's 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, and the government wish to strengthen the research community and the development of new and promising energy solutions. In late 2004, the government announced its intention to present a more comprehensive energy initiative or energy plan around March 2005.

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 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 the end of 2004, more than 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 the 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 in early 2004, the Danish Energy Authority (EA) in collaboration with the electricity sector, the industry and other key stakeholders, finalized a national strategy on PV after a public hearing. This PV strategy includes the fields of research, development and demonstration. Deployment activities in support of the PV strategy are expected to be developed in the coming years and an overall framework for the coordination of PV development and deployment in Denmark is thus expected to be in place within a few years.

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 - catalyzing 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

Denmark has no unified national PV programme, but a number of projects 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 2004 about 2,3 MW have been installed in the context of projects and demonstrations plants.

A 300 roof-top project including 750 kWp was launched early 1998 and was completed by end of 2001. A 1000 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 1 300 house owners expressing firm interest in the programme and by end 2004 about 470 kW have been implemented, stimulated by an investment subsidy of 40 % of the turnkey system cost; the average turnkey system cost being 4,50 EUR/W.

Fig. 2 - The Tjornehojskolen School, Copenhagen. A fully integrated PV system of 17,4 kWp. A special support programme for PV applications in the commercial sector, funded by the CO2 tax on electricity, was set up in 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, and the draft report was sent into hearing to key stakeholders, late 2004.
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Research, Development and Demonstration

During 2003, the government has 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.

In 2004, the government increased the PSO allocation for R&D into environmentally benign generating technologies from 100 MDKK per year to 130 MDKK per year. However, due to an ongoing merging of the two network operators into one new state-owned venture, this extra funding has not yet materialized. In 2004, the EA became part of the new EU supported PV RTD network PV-ERA-NET focussing on EU level and national level coordination and optimization of PV RTD programmes.

R&D activities into PEC cells (Grätzel type cells) are ongoing at the Danish Institute of Technology. This activity has been supported in 2002-2003 by the PSO of the Danish network operators. This R&D activity has now attracted commercial finance and a new company has been formed. 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; in particular, in the setting up of local quality assurance schemes and test laboratories.
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Implementation

Fig. 3 - The Tjornehojskolen School, Copenhagen. A fully integrated PV system of 17,4 kWp.

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

The SOL 1000 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, had implemented about 470 kW in total, by the end of 2004. The same project focuses on the gradual increase of enduser 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 Electric: 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

R&D efforts are beginning to show commercial results in terms of export. The company Topsil, which uses a float-zone technique produces high purity Silicon (Si) ingots for the semiconductor industry, announced in 2002 their intention of developing a lowcost float-zone manufacturing technology, that would enable the company to offer high purity Si to the PV industry. It is now (2004) seeing the first commercial results of its R&D into low-cost floatzone processing and is presently supplying SunPower in the USA, with float-zone Si for high efficiency PV cells.

Inverter technologies has been R&D'd for some years for both fuel cell and PV applications. For the latter, a commercial breakthrough was also announced in 2003 by the Danfoss related company Powerlynx, which reports in 2004 to have underpinned and significantly strengthened the commercial breakthrough announced in 2003.

PV Si cell production stopped in Denmark in 1996. A single Danish module manufacturer (Gaia Solar) with an annual capacity of about 0,25 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 mainstream 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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Development of standard solutions for houses with PV
The aim of the project is to develop integrated PV solutions for standard houses. This implies the development of an integration method in the design phase, which makes the PV system a functional and architectonic element of the standard house. The PV system will be promoted as an aesthetic, green and prestigious element of standard houses.
By developing the PV system with standard modules as a functional and aesthetic part of a standard house one obtain the following advantages and at the same time promote PV technology and renewable energy production.
Fig. 4 - Danish housing project where the idea is to develop standard solutions for houses with PV.

• Compared to PV-systems applied to existing buildings, a reduction of cost is gained by integrating PV as a regular element of standard houses.
• Developing the standard house with a PV-system from the beginning creates possibilities in aesthetics and design, research and developing of integration concepts and the choice of materials used.
• When the PV system is a regular part of the standard house it also enters into the financing, which diminish the actual cost of the PV system.
• The electrical installations can be optimized and adjusted to obtain a more efficient use of the PV production.

The final result of this project of integrating PV as a regular element of standard houses will be realized in full scale as a demonstration house. The project will show the way for future PV systems on standard houses and at the same time focus on the possibilities for reducing the price of integrated PV-system on standard houses.
The designs of future PV systems are of vital importance in promoting building integrated PV to constructors of standard houses. It has to be both economically and visually attractive to integrate PV as a regular element of standard houses.

Market development

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

Total PV business volume in 2004 is very difficult to estimate with any degree of accuracy primo 2005, due to the commercial secrecy surrounding the above mentioned new business developments in the fields of Si feed stock and inverters. However, a rather sharp increase from 10 mill in 2002 to 25 MEUR in 2004 is a “best guess.”

The cumulative installed PV capacity in Denmark (including Greenland) was estimated to be about 2,3 MWp by the end of 2004, an increase of about 20 % compared to 2003.
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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 1000 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, e.g. a SOL 5000 initiative is under development. It is certain that 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 the unchanged development of the Danish end-users increasing willingness to invest in PVs, a market for PV roof-tops in Denmark without any investment subsidy will emerge around 2011-2012.
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Development of standard solutions for houses with PV The aim of the project is to develop integrated PV solutions for standard houses. This implies the development of an integration method in the design phase, which makes the PV system a functional and architectonic element of the standard house. The PV system will be promoted as an aesthetic, green and prestigious element of standard houses. By developing the PV system with standard modules as a functional and aesthetic part of a standard house one obtain the following advantages and at the same time promote PV technology and renewable energy production.
•	Compared to PV-systems applied to existing buildings, a reduction of cost is gained by integrating PV as a regular element of standard houses.
•	Developing the standard house with a PV-system from the beginning creates possibilities in aesthetics and design, research and developing of integration concepts and the choice of materials used.
•	When the PV system is a regular part of the standard house it also enters into the financing, which diminish the actual cost of the PV system.
•	The electrical installations can be optimized and adjusted to obtain a more efficient use of the PV production.
The final result of this project of integrating PV as a regular element of standard houses will be realized in full scale as a demonstration house. The project will show the way for future PV systems on standard houses and at the same time focus on the possibilities for reducing the price of integrated PV-system on standard houses. The designs of future PV systems are of vital importance in promoting building integrated PV to constructors of standard houses. It has to be both economically and visually attractive to integrate PV as a regular element of standard houses.