Wind power has overtaken all other energy sources as the cheapest form of electricity in Denmark, with a cost roughly half that of coal and natural gas projected by 2016, according to an analysis by the Danish Energy Association (DEA).
Home to major turbine manufacturers Vestas and Siemens, the country has been investing steadily in wind power since the 1970s and seems to be reaping the benefits of those investments now, analysts say.
Electricity from two new onshore wind power facilities set to begin operating in 2016 will cost around 5 euro cents per kilowatt-hour, according to DEA calculations. Wind power would remain the cheapest energy option even if interest rates on wind power projects were to increase by 10 percent, the report found.
The Danish government aims to meet 50 percent of the country’s total electricity needs with wind power by 2020, and another 20 percent with other renewable sources. By 2050, the government aims to produce all electricity from renewable sources.