A key component of the green transition will be balancing consumption and production of green electricity. This requires renewable energy companies, like Better Energy, to develop integrated strategies that allow for flexibility in the power grid. The BESS project at Hoby solar park will allow Better Energy to offer ancillary services and frequency control to help the Danish TSO, Energinet, regulate the power grid.
Better Energy has previously collaborated with Energinet to certify its Væggerløse solar park to provide frequency services, an example of the strong collaboration between renewable energy companies and grid operators needed to achieve a stable and reliable power grid.
“As renewable energy production becomes more dominant in the energy system, it is important that new technologies and renewable energy companies also contribute to the balancing market and support the stability of the systems,” says Thomas Dalgas Fechtenburg, Senior Manager, Ancillary Services at Energinet. “Therefore, it is great to see that Better Energy is enabling more flexible operation by installing a relatively large battery in their park.”
An energy system based on renewable energy
Better Energy’s first BESS project is in anticipation of an energy system based on renewable energy and underlines the importance of flexibility. Through early-stage energy storage and discharge planning, Better Energy can contribute to stabilising the power grid and electricity prices. The BESS project presents the opportunity to store excess energy at peak times for renewable energy and work toward ensuring green electricity is regularly available.
“As we increase the amount of green energy we can produce, we need to take responsibility and actively work with the grid companies to develop strategies that allow for a flexible power grid driven by renewable energy,” says Viggo Aavang, Senior Vice President of Power Markets at Better Energy. “The BESS project connected to our Hoby solar park creates another opportunity for us to promote flexibility which is crucial in order to build a system based on renewables.”
One of the largest BESS projects in Denmark
Better Energy’s BESS project is expected to provide 12 MWh of energy storage, one of the largest planned projects in connection with a solar park in Denmark to date. The Hoby solar park was grid-connected in August 2023 and has a production capacity of 70 GWh. The BESS is expected to be installed and operational by the end of 2024.(hcn)
Each partner will own 50% of the completed portfolio, with Better Energy managing the parks’ development, construction and technical operation. The two companies have also outlined joint ambitions for energy storage and nature and biodiversity initiatives within the portfolio.
First four solar parks are ready-to-build
The first four solar parks are expected to be built in the Danish municipalities of Sorø, Vordingborg, Guldborgsund and Næstved. All four parks are expected to start production this year or next year. Collectively, the parks will have a capacity of around 750 MW, equivalent to the annual electricity consumption of about 490,000 Danes. If all 15 parks are constructed, the total capacity is expected to be around 2 GW, equivalent to the annual electricity consumption of approximately 1.3 million Danes.
The impact of the partnership is far-reaching, as noted by Rasmus Lildholdt Kjær, CEO of Better Energy:
“Our partnership with Andel will directly impact the green transition in Denmark. We can all be proud that Andel, one of Denmark’s largest companies in terms of revenue, will soon be able to call itself one of Denmark’s largest co-owners of green energy production on land. We are in a hurry, and the speed of the green transition is crucial for the world we will live in 10, 20, 30 years from now. This agreement is a significant step in the right direction.”
Jesper Hjulmand, CEO of Andel, describes the partnership as a decisive leap forward for the energy conglomerate in terms of renewable energy production:
“We are in the midst of a very serious climate crisis that requires our action urgently. Wind and solar power on land is the fastest way to expand our renewable energy in Denmark. Consequently, it is only natural that we increase our commitment to solar power. This is a very ambitious agreement that will increase the total production of renewable energy in Denmark and which will also have a significant effect in relation to Andel’s goal of our production of renewable energy reaching 10 TWh in 2035”.
For Jesper Hjulmand, Better Energy is the right partner:
“It is important for Andel to combat climate change and ensure renewable energy for our cooperative owners and customers. We are now doing exactly this with Better Energy. Together we have a keen eye for community dialogue and engagement to create local value, as well as an integrated focus on considering climate and nature in the development of energy parks.”
Mark Augustenborg Ødum, CFO of Better Energy, explains Better Energy’s partnership model, which essentially involves inviting co-owners who share a vision to accelerate the green transition:
“As a partner, you enter a portfolio of energy parks. Through this partnership, Andel gains direct ownership of green energy production in Denmark, and Better Energy can continue to increase the pace of expanding renewable energy across our markets in Denmark, Poland, Sweden, and Finland.”
Additional Facts about the Partnership
The proposed energy parks will enter the portfolio once permits are obtained and they enter the ready-to-build phase. For all projects it has been a priority throughout the planning process and local dialogues, to achieve as broad acceptance as possible among the population and authorities in the local communities – e.g. through nature initiatives, adaptations of project areas, fauna passages, recreational initiatives near town areas, and path systems. The joint ownership of the energy parks does not include the joint sale of energy. Each party will sell its share of the power, and marketing and customer contact will also be handled separately.
The solar parks ready for construction are:
In Sorø municipality, a park is being built near Vedde, with a capacity of 107 MW and an expected annual production of approximately 108 GWh, equivalent to the average electricity consumption of 68,000 Danes in a year.
In Vordingborg municipality, a park is being built near Køng Mose, with a capacity of 187 MW and an expected annual production of approximately 198 GWh, equivalent to the average electricity consumption of 124,000 Danes in a year.
In Guldborgsund municipality, a park is being built near Radsted and Grænge, with a capacity of 329 MW and an expected annual production of approximately 349 GWh, equivalent to the average electricity consumption of 218,000 Danes in a year.
In Næstved municipality, a park is being built near Saltø, with a capacity of 120 MW with the expected annual production still to be calculated. (hcn)
Mr Jorgensen, Denmark has been a pioneer in the heating transition for many years. How far have you already come? Where do you currently stand?
Our heating transition is closely linked to our district heating system. Two thirds of the approximately 3 million households in Denmark are supplied with district heating and we have a 75 per cent share of renewable energies in district heating. A good half of the district heating comes from certified biomass, primarily wood. We want to reduce this share to 35 per cent by 2035. We want our district heating supply in Denmark to be 100 per cent climate-neutral by 2030. We are focussing heavily on electrification and large heat pumps. We want to use more geothermal energy for district heating, more waste heat from industry, more ambient heat from sewage water, heat from data centres and more surplus solar power for daily and seasonal storage.
How do you intend to decarbonise the heat supply to those buildings that are not yet connected to the district heating supply?
We currently have around 400,000 households that are still supplied with gas, which we want to move away from. To this end, our government adopted a strategic plan “Denmark can do more – two” in summer 2022. The aim is to switch to 100 per cent biogas by 2030 and to phase out the gas supply for buildings completely by 2035. The solution will then be either heat pumps or connection to the district heating supply, roughly half in each case. To this end, the Danish government has introduced accelerated heat planning, which builds on our many years of experience with mandatory municipal heat planning, which has been in place in Denmark since 1979 and is a key instrument for achieving our climate targets.
What does accelerated municipal heat planning involve?
In 2022, all Danish municipalities had to write digitally to all homeowners who still heat with gas within six months and inform them whether they will receive a district heating connection by 2028. If not, the affected homeowners will have to opt for other fossil-free solutions. All municipal utilities are currently drawing up implementation plans, in which they are calculating and specifying exactly when district heating connections will be available in the relevant areas.
Compared to Germany, this is very ambitious and strict. Aren’t there also heated debates in Denmark about a supposed state policy of prohibition at the expense of market freedoms and the “little people”?
Actually, no. We have a phenomenon here that we call “politisk forlig”, i.e. broad, consensus-orientated agreements that are supported by all parties. For example, our climate law is supported by 9 out of 10 parties, across all political camps. There has been broad support in Denmark for a policy away from fossil fuels and towards a renewable heat supply since the first oil crisis in 1973. This also includes a targeted increase in the price of gas, oil and coal by means of an energy and CO2 tax. Heating houses with gas is now the most expensive option and district heating is significantly cheaper.
How much does district heating currently cost in Denmark?
Currently, the average cost of district heating for a standard house with an annual consumption of 18.1 megawatt hours is just under 2,000 euros per year. Transparency is also important to us here. The 400 or so companies in Denmark that produce and sell district heating have to send their prices to the Danish Utility Regulatory Authority twice a year. The Inspectorate then publishes the prices on the Internet. The companies are also legally obliged to offer district heating not only as climate-neutrally as possible, but also as cost-efficiently as possible and to distribute or reinvest profits to customers. In addition, many district heating companies are organised as cooperatives and citizens have a stake in them or they are owned by municipal utilities.
So is there no cross-financing of other municipal services of general interest via income from the district heating supply?
No, cross-financing is not permitted and no profits may be generated from the district heating supply. The Kommunale Bank, in which all Danish cities and municipalities are involved, plays an important role in long-term municipal investments in the expansion of climate-neutral heat supply. It offers corporate loans on favourable terms. In addition, the municipality is the central authority for heat planning in Denmark and must approve all projects. Overall, the district heating supply in Denmark is much more heavily regulated than in Germany.
How do you pass on your experience in the field of heat planning and the expansion of municipal heat supply to your German neighbours?
On many levels. We work closely with the Federal Ministry of Economics, associations and municipal utilities as well as with federal states such as Hesse, North Rhine-Westphalia and Baden-Württemberg and with individual local authorities, either through consultation or in workshops. For example, Baden-Württemberg used our technology catalogue as a guide when introducing municipal heat planning and we cooperated in the creation of a heat planning guide and municipal heat registers.
MAN Energy Solutions
Site of a giant seawater heat pump in Esbjerg/Denmark, which feeds heat into the local grid.
We are taking a lot from Germany to Denmark to improve our heat transition. Our cooperation is a two-way street of knowledge transfer across the border. For example, funding programmes, competence centre for heat transition, technologies such as geothermal energy and waste heat.
How important is a solid data basis for municipal heat planning?
This is hugely important. But local authorities should take a pragmatic approach here. The heating plans don’t have to be 100 per cent complete before you start. Municipal heat planning is a process. Further political decisions are incorporated here and plans can be further concretised over time. Further digitalisation and standardisation of the heat plans are also crucial. It is also extremely important that the local authority brings together the major local stakeholders such as industrial companies, hospitals, data centres and schools, as well as the electricity and gas network operators, in order to identify heat usage potential and agree on plans.
What other “levers” do you think are important in the transformation of the heat supply? What are your “lessons learnt” here?
In addition to transparency, investment security and suitable framework conditions for local authorities, diversification is important when switching to a climate-neutral district heating supply. In Denmark, we have so far focussed heavily on biomass. The inclusion of more energy sources, electrification and sector coupling also increases the security of supply and resilience of the overall energy system. That is why we are now in the process of greatly expanding photovoltaics in Denmark. Large-scale solar thermal plants are also an important component of our heating transition, where we have an installed capacity of 1.2 gigawatts. Seasonal storage systems can be used to store solar heat, solar and wind power for times when the sun is not shining and the wind is not blowing. This is cheaper than battery storage and creates added value for the entire energy system.
Thank you for the interview!
The interview was conducted by Hans-Christoph Neidlein
European Energy and the Danish Society for Nature Conservation have developed a new nature agreement ensuring the restoration and protection of nature where it is most needed. Simultaneously, future renewable energy projects from European Energy in Denmark will take even greater consideration of Danish nature, in part by the partners developing biodiversity and nature initiatives targeted at energy parks.
The agreement contains nine joint guidelines for new renewable energy projects that European Energy will follow when developing solar and wind parks in Denmark.
“Climate and biodiversity crises can have catastrophic consequences for life on the planet. The solutions to the climate crisis must not prevent us from simultaneously addressing the biodiversity crisis, or vice versa. Therefore, I hope that this agreement can help influence the entire energy sector. It is absolutely necessary that we consider nature from the outset when developing new renewable energy projects,” says Maria Reumert Gjerding, president of the Danish Society for Nature Conservation.
„Demonstrate that the fight for nature and climate can be united“
She continues: “Sometimes, public debate frames nature and climate action as opposites, suggesting that nature hinders the development of renewable energy. We, at the Danish Society for Nature Conservation and European Energy, regard this as a false dichotomy. With this agreement, we demonstrate that the fight for nature and climate can be united if one thinks carefully and makes an effort. Therefore, I am very proud of the agreement.”
European Energy has long focused on enhancing biodiversity and local nature in its projects. With the agreement with the Danish Society for Nature Conservation, the company hopes to benefit from the organization’s nationwide expertise in nature and looks forward to strengthened local collaboration.
For every 100 ha of a solar park 5 ha purchased for nature
“We are incredibly pleased that the agreement provides us closer cooperation with some of Denmark’s leading enthusiasts and experts in nature management and protection. This enables us to more positively impact local Danish nature and biodiversity when we develop and construct renewable energy projects,” says Thorvald Spanggaard, Executive Vice President of Project Development at European Energy.
A core element of the collaboration is to give nature more space, both within and outside project areas. This includes purchasing land for permanent restoration, protection, and management of wild nature. This means European Energy commits to purchasing land for permanent nature purposes every time a solar or wind park is built in Denmark. Specifically, for every 100 hectares of land European Energy uses for a solar park, five hectares of land will be purchased for nature. For each wind turbine installed, one hectare of land will be purchased. The land purchase will be conducted in collaboration with The Danish Nature Fund. (hcn)
