Time for Energy Democracy. How new strategies and forms of ownership may help to implement solar, wind and biomass energy

Transcription

1 Time for Energy Democracy. How new strategies and forms of ownership may help to implement solar, wind and biomass energy By Preben Maegaard and Jane Kruse Nordisk Folkecenter for Vedvarende Energi (Nordic Folkecenter for Renewable Energy) November 2010 Local non-profit companies may carry out onshore wind turbine development more cheaply than private investorsand even wind turbine co-operatives. Hundreds of district heating and power plants, local electricity distribution companies and water works are communally owned. People are used to democratic ownership of energy sources which for generations has worked well for everyone at the lowest possible price including wind turbine power

2 Put the boot on the other foot! During the last few years there have, from different sources in Denmark, emerged a great amount of energy management plans. Finally In September 2010, the Climate Commission s report, which similar to others, concludes that a transition to renewable energy is indeed possible over the next decades. In May 2010, four political parties, De Radikale (The Radicals), Socialdemokraterne (The Social Democrats), Socialistisk Folkeparti (The Socialist People s Party) and Enhedslisten (The Unity List(?)), issued a joint energy vision, KLIMADanmark 2050, asking for comments from interested parties. The writing in hand, which we hope will be of interest to the public, is based on comments, forwarded by us, in October 2010 to the mentioned political parties. Our aim is to point out strategies which, in Denmark and other countries, have proven to be helpful during the transition to renewable energy. After a 30 year development period, there has been established enough experience, via various political venues, to sort out the most effective procedures. For this reason, we prefer to focus on strategies rather than percentages for the ongoing development. Some countries have set themselves great goals in the field of renewable energy development, but been hampered by insufficient means, and thus failed to achieve their goals. Others have adopted efficient measures and have turned themselves into global renewable energy leaders without any fixed goals. Germany is one such country. Furthermore, the development of wind energy in Denmark during the1990s shows that a goal set for the following ten years was reached a few years earlier than planned because effective strategies made faster development possible. Given the present precarious climate and resource situation, we suggest a particular political focus on working out optimal strategies. As it is, the government that approves sites for major solar, wind and biomass installations and the economic framework for such undertakings is laid down by law. One should also consider whether the role of the market mechanism, referred to in the Climate Commission s report and other energy plans, might be replaced by well proven forms of ownership and economic models. Such as in the non-profit companies in the fields of district heating, water supply and electricity distribution, where this practice is prevalent. Because the availability of solar and wind power is erratic and unpredictable, the market cannot control production, which, in a market based economy, may lead to adopting counter-productive strategies. These include shutting down wind turbines, while keeping fossil fuel based electricity and heat production operational. This would suggest looking for alternative solutions to prioritize renewable energy. The goal is to acquire 100% renewable energy and a versatile business development in all aspects and sectors of this field. This will create more jobs and a fresh industrial development with a great potential for future export. Because renewable energy by nature is decentralized, we think that future forms of energy should not, as suggested by the Climate Commission, be administered according to those central structures and ownership models used for conventional forms of energy. Big energy corporations maintain costly organizational hierarchies, which are counter-productive by nature and will incur needless cost during the

3 transition to renewable energy and the process of installing great numbers of solar, wind and biomass units. Briefly, we will mention the use of energy for transport. An understanding of the need for sustainable transportation in a modern industrial society cannot be reached just by discussing electric vehicles and improved public transportation, but must also take into account and assess latter day logistics and urban planning. Great distances between private and public venues, such as living quarters, workplaces, institutions and shops will generate a need for transport and thus a correspondingly high use of energy. Just as sure as energy saving will reduce the need for supplied energy, new forms of urban integration will reduce mobility and thus lead to establish a level of energy spending compatible with future production capacity. Social economic arguments have been used systematically to undermine any large scale transition to renewable energy. It should be laid down by law that all sources of energy should be brought into the equation, and not only those that, from a social economic point of view, at the moment appear to be the cheapest, which since 1992 have been the overriding principle in Denmark. Likewise, we think that the development of renewable energy should trigger new income generating activity and development in outlying areas. At a lower, or at least, we feel, at the same cost as the suggestions in the KlimaDanmark 2050 manifest. Our suggestions are meant to be powerful incitements towards consumer control and/or communal ownership. For more than 30 years, the development of wind power has been regarded as a business venture and not as a public service along with district heating, combined heat and power plants and electricity distribution. Since wind power will be the keystone of future energy supply, we suggest to harmonize the form of ownership for big wind turbines, making it more similar to other fields of energy supply where decentralized collective ownership is the norm. This means to eliminate regulations that have made wind turbines into private investment objects. The wind turbine co-operatives that used to be so popular represent only a small segment of the population. The significant difference between these and the public consumer or municipally owned companies is that profit is not reinvested to increase the supply of renewable energy for the common good but instead to private consumption. A democratic model would define the transition to renewable energy as a government responsibility for the common good, such as is the case with district heating, water supply and electricity distribution. In this case, public utilities own and operate installations for the supply and service of all citizens at a not-for-profit basis. This model would allow communities and municipalities to compete with each other for the most efficient sources of energy. This would allow communities to better understand how and what is generating their electricity and hot water for heating and cooling. Most importantly, it will give them a voice into choosing their types of energy sources. If the origin of the supply source as seen from the consumers point of view cannot be identified, market principles cannot create preferences between the different suppliers of an identical product. Thus, if local political representatives can be turned into spokesmen for transition, the local community as a whole will be able to reap the economic and environmental benefits that a change to renewable energy will bring about. This again, we believe, will lead to renewed popular acceptance of wind

4 turbines. Such acceptance must occur before the long standing mental barriers against large scale onshore wind turbine development can be broken down. Our comments focus on best practices combining a number of resource related and structural issues. We are in the midst of a change from centralized to decentralized forms of energy, and the task in hand should be to work out the most rational solutions, and accordingly decide who would then be best suited to implement the transition. No sign of a discussion along these lines is found in the energy plans mentioned above. 1. Sun and wind for energy are unlimited; biomass is limited. That is the basis for our overriding strategy Sun and wind are in principle unlimited sources of energy, whereas biomass is limited. The overriding strategy is, therefore, that sun and wind should cover 100% of the energy supply with regard to electricity, heating and mobility whenever these sources of energy are available, whereas biomass should be reserved to be used as back-up. Thus, biomass should not be used when sun and wind provide sufficient supply. The great thing about solid and fluid biomass is that they can be stored cheaply and easily. Denmark should in principle produce energy from its own biomass and not, as suggested in certain energy plans, engage in large scale import. This is because importing deprives other countries of using their own biomass, which is also their essential store of backup energy. 2. Centralized versus decentralized forms of energy Renewable energy differs from fossil forms of energy in that they are decentralized by nature; thus a small number of large scale installations for energy production with just a few operators may be replaced by a large number of small ones. In principle, any building, house or farm can produce energy. Most forms of renewable energy can be produced in large scale and thus turn out to be cheaper than traditional forms of energy technology. 3. Green business development Because the transition consists of a change from using conventional resources (coal, oil, gas) to innovative technologies, this energy vision will create thousands of new jobs and industrial sectors. Investing in new production technology means long term commitment. Those who make the production of renewable energy possible envisage that pay down for new installations will take from 10 to 20 years. Thus, to safeguard investments, the business community feels the need for permanently valid regulations. Which again will lead to increased production within any branch of energy technology thus favoured another argument for safeguarding investment via fixed prices. A solar energy installation will not increase its productivity (once it s on the roof!) However, the next door neighbour s installation may produce more energy due to improved technology when installed some years later. Example: Since 1991, under changed political leadership, Germany has experienced a continuous renewable energy development; creating 400,000 jobs. From these jobs, 50,000 are in the field of solar cell production alone. The USA and the UK on the other hand, have favoured short term programs (with tax benefits or quotas) and experienced a weak industrial development in this field.

5 4. Subdivision of groups of future users of supplied renewable energy: a) The user is also the owner. Such as private houses with solar energy panels (heating/pv), household wind turbines and heating installations up to 6 kw, farms with biomass/biogas installations and industries and institutions with their own renewable energy supply units. As to cost, the principle of net to cost accounting was adopted in June 2010 for units up to 6 kw. There are no special arrangements for agricultural and industrial energy production. b) Communal or local consumer owned companies may own and run local collective supply installations for combined heat and power (CHP), district heating, big solar heating units and most of the electricity distribution; all run on a non-profit basis. We recommend that if more than one onshore wind turbine is to be installed, in order to regain local acceptance, they should likewise be locally owned and erected exclusively as none profit ventures. (Private enterprises, including co-operatively owned wind turbines have hitherto dominated the scene). c) Nationwide energy companies may own and run centralized energy installations such as offshore units, natural gas networks, refineries and combined heat and power plants for electricity and heating supply in major towns. 5. Focusing on wind energy We would prefer to see onshore wind turbines play a much more important role than suggested in the Climate commission and other energy plans, which primarily focus on offshore wind energy. The installation and operation of large wind turbines should become part of normal municipal supply and services. Municipalities or consumer owned companies are already in charge of water supply, district heating, sewage and most of the electricity distribution. They should also be in charge of the collective development of renewable energy sources, including wind turbines and thus get an incitement to further investment, which would especially benefit outlying areas. A publicly owned wind turbine company will, compared to privately owned wind turbines, be able to get long term loans at a low rate of interest. It will also just have to pay a so called inconvenience compensation, for areas allotted to wind turbines, that is just a fraction of the capitalized ground fees levied on private owners, including wind turbine co-operatives, for their wind turbine sites. Given such conditions, wind turbine supply units stand to gain a profit of about øre per kwh compared to the present cost calculations for privately owned wind turbines. For a 2 MW wind turbine, this means around 1 million. Dkr a year needs to be set aside for initiating public energy projects, including energy saving in public buildings, subsidising bio gas, electricity vehicles and researching climate adapted energy solutions. Thus the real community cost price per kwh for wind turbine power comes down to about 35 øre. This account to about one third of the electricity price of new offshore wind turbines. As a further incitement to prepare local authorities and consumer owned companies (and thus the whole population) to endorse the development of collective renewable energy based energy supply, there will be no extra cost for electricity consumers. This

6 would be done by allowing land-based collective wind turbine energy sell at the same price as the politically approved price for offshore energy. Thus the profit of local collective supply companies may run up to 70 øre/kwh. Thus there will be a powerful drive towards local RE investment, increased competition and especially economic growth in outlying areas. The investors will be under an obligation to invest the net outcome in local environmentally friendly and publicly beneficial solutions. Again this would improve living conditions in economically backward parts of the country and create increased equality. Such an arrangement might reduce the wind energy market potential of nationwide energy supply companies. 6. Drop quotas (A) and social economic calculations (B); replace with feed-in tarifs (C). a) In the report Klima Danmark 2050, edited by some political parties, it is suggested to remain inside the European quota system. Several countries have changed the policy of renewable energy quotas and green certificates and adopted feed-in tariffs, FIT. This leads to a faster and cheaper transition to renewable energy. We recommend for Denmark to leave the CO 2 quota system and implement the FIT principle. b) A transition to 100 % renewable energy entails the use of all forms of technology as well as various kinds and sizes of installations for solar, wind, biomass, geothermal and wave energy, and not just those forms of renewable energy that at the moment appear to be the cheapest. For this reason, the principle of socioeconomic most cost effective solutions should be dropped and replaced by a cost accounting system with guaranteed, differentiated prices, corresponding to the real cost of implementing the various forms of renewable energy. Socio-economic calculations came into effect in 1992 and have served to block the introduction of a number of new and promising renewable energy technology solutions. In practice, however, the government fails to base all renewable energy projects on socio-economic calculations. Instead of overpaying for projects, such as the 400 MW offshore wind farm near Anholt, the same volume of wind energy might be supplied at below half the cost by onshore wind turbines that are democratically owned and run by local not-for-profit companies. c) C. A FIT would lead to an optimal dynamic development. FIT have been introduced in more than 50 countries, as shown on FIT are based on differentiated and guaranteed cost calculations (20 years), laid down by law after consulting with relevant operators to achieve an optimal development of every form of renewable energy, yet without undue costs. Prices should be revised every 3 to 4 years. The powerdistributing companies will pay the suppliers of renewable energy according to politically decided tariffs, whereby all power users will pay for the production of CO 2 neutral energy. Examples: In April 2010, a FIT was introduced in the UK; In the Canadian province of Ontario in May In Germany a FIT has been in force since 1991 and in Spain since 1995.

7 7. Feed-in tariffs to replace government subsidies to renewable energy. If a FIT is introduced, there will be no subsidies to renewable energy in the state budget. This solves the dilemma that the desired transition and growth of renewable energy keeps leading to increased public spending, so that renewable energy remains a permanent part of the political fray. Instead of government subsidies, the FIT mandates the responsible power system to pay the price approved by the government for every single form of energy that is part of the total electricity price-mix whereby all energy consumers will pay according to their consumption. In the case of particularly energy cost sensitive industries, a compensation system may be considered. In order to stimulate the transition to renewable energy, a part of the FIT system is a yearly reduction of prices, depending on improved productivity within any given field of energy technology, an incitement to further investment. An EU tribunal ruling from March 2001 states that FIT cannot be regarded as a form of subsidy, and that renewable energy and environmental issues should override inner market regulations to further the transition to a fossil free society. 8. Local regulation up and down instead of international cable connection. With up to 50% wind-electricity in the future power system, the capacity for comprehensive, quick and frequent adjustment upwards and downwards - is necessary. But instead of international cable connection and costly power storage systems, the needed continuous adjustment of the fluctuating power production can best be achieved via the development of the 600 decentralized combined heat and power plants that approximately exist. This is already a part of the cell structure belonging to Energinet.dk, the state power and transmission line responsible unite, which is currently under establishment. The cell structure has been adopted to reduce the need for power transmission and secure constant supply. Within the geographically determined cell structures, excess production of fluctuating solar and wind turbine electricity is used for heat production using electric boilers in local combined heat and power, CHP, plants. Thus wind replaces natural gas and bio mass, which are limited resources, in the supply of power and heat. In several townships (Odense, Assens, Grindsted, Skagen, Nykoebing and Snedsted) there are already such CHP plants with electric boilers. At the end of 2010, it was expected that there will be 20 of them with a total downwards adjustment capacity of 200 MW. An estimate of the full potential is 6,000 MW, which is an important precondition for the planned substantial increase in the number of wind turbines without having to rely on exporting surplus electricity abroad. 9. International cable connections may lead to unjust exchange conditions Since the exchange of wind generated electricity with Sweden and Norway is run as a market based system and not via exchange agreements, it may in the long run not pay off for Denmark to sell a lot of surplus electricity abroad when the alternative is to use it in Danish combined heat and power plants. Electricity for downward regulation must frequently be sold at low here-and-now prices, whereas imported electricity to fill a shortage may be offered at an exorbitant tariff. Norway particularly may find itself in a privileged situation, able to divide and rule among the countries in the energy

8 market. This will lead to high prices for Norwegian upward adjustment for electricity to countries where wind power is predominant, such as in Denmark and Germany. Electricity system adapted to variable energy supply from solar and wind energy In many hundred local combined heat and power plants, heat is already in store. Via electricity boilers, one has an ideal infrastructure for quick adjustment of up and down regulation. Electricity boilers are cheap to install (1,000-1,500 kr per kw). With an average of 10 MW per plant, there is a large capacity for many years to come for down regulation of variable electricity production. There is no conversion loss. The so called surplus electricity will get a value corresponding to the replaced fuel, which in the case of natural gas amounts to øre/kwh. Later the boilers may be combined with inverters. 10. Low investment for downward adjustment higher prices for surplus electricity Denmark s more than 600 combined heat and power plants, many of which have a large capacity for storing hot water, are particularly suited for upward and downward adjustment. Such plants are predominantly located in North and West Jutland, along with the largest concentration of wind turbines, and are most often powered by natural gas. Downward adjustment is achieved whenever the wind is strong enough to let electric boilers cover the heating so that the gas engines may be shut down. Whenever electric boilers take over the supply for heating, it is only the fluctuating power from solar and wind, and not the combustion of fossil fuels and biomass simultaneously, that generate the energy needed for electricity and for heating as well. The integration of power and heat is an important step towards a fully renewable energy based future structure. Instead of exporting wind turbine electricity often at very low or even negative prices or closing-down wind turbines when the wind is abundant, the wind turbines may supply all the electricity and a part or all of the heating. Upward adjustment is achieved by restarting the gas engines, which may be done in a matter of minutes. Heating pumps and storage batteries in vehicles may eventually gain importance in the long run, when there is a yearly need for thousands of hours of downward adjustment. In such a future scenario there will also be supply peaks, which will pay off in the best

9 way if used in electric boilers. Thus it will be a sound investment to accelerate the deployment of electric boilers as a supplement to heat pumps. It is cheap to establish upward and downward adjustment in existing combined heat and power plants, DKK 1,000 1,500/KW installed capacity. Heat recovered from wind generated electricity will have a value corresponding to the price of the replaced heat generating fuel. Natural gas based heat costs DKK /kWh, which is much more than the normal export price in the power market, which can even be negative. Economically speaking, the use of downward adjustment electricity for heating will be a great advantage to the government s electricity responsible company. The combined heat and power plants in Faaborg (left) and Nr. Vorupør (right), run on natural gas and exemplify how well prepared the Danish energy system is for transition. At a modest investment there can be adjustment upwards and downwards, which will make a huge supply of variable solar- and wind energy available for electricity and heating. Decentralized structures and many more onshore wind turbines will drastically reduce the need for electricity transmission and export. Photo: Folkecenter. 11. RE and other major socio-political priorities The transition to renewable energy ought to be conducive to other major social issues. Such as the in Klima DK 2050 targeted areas; new jobs, business development and export. Furthermore, we would like to pinpoint the importance of improved income generating activities in outlying areas by legally binding the ownership of renewable energy installations to collectively owned energy supply companies. Most solar, wind and bio mass resources are located in the most thinly populated areas of the country. Local ownership, especially of wind turbines, is thus a potential for generating income in outlying areas and can easily be guaranteed by a new regulation in building licenses for renewable energy installations stating that any area designated by the government for the installation of renewable energy plants for the supply of energy to the public may exclusively be owned by local consumer owned or municipal companies. Solar heating centrals: Solar heating panels on hundreds of combined heat and power plants and district heating plants will during the summer, partly replace natural gas based district heating and release biomass (chips and straw), which will then be increasingly available, especially in major towns. There is, however, the precondition that Denmark should be self-sufficient with regard to bio mass, which globally is a limited resource, in order not to limit the possibility for other countries to use biomass as stored energy in combination with the variable forms of energy sun and wind.

10 Biomass: In the central heating units in outlying areas, solid biomass (chips and straw) should as a rule be kept in store as back-up fuel, for whenever solar and wind energy do not suffice; and should thus not be burned, when solar and wind energy can cover the need for electricity and heating. To improve generation of income in agriculture, at least half the manure should be processed in biogas units on farms. Establishing biogas units on 5000 major farms may generate an electricity production of 6 TWh; about 17% of Danish electricity consumption. The incidental by-product heat from the process may be of further use, for instance in heating. In Denmark, only 5% of the manure is processed this way, even after a 20 year period of biogas development for energy purposes. Biomass is a limited resource, whereas there is an abundance of sun and wind for integration in the total energy system. When sun and wind are available, these variable forms of energy will cover the whole supply of electricity and heating. Biomass is stored simply and cheaply; as a back-up for hours and days, with insufficient sun and wind. In the pictographs, fossil energy (left) is replaced by biomass (right). Graphic: Folkecenter 12. Energy harvesting and self sufficient nitrogen supply In ecologic agriculture, biogas is very much in demand to achieve an ecologically based nitrogen supply. At present, ecologic agriculture depends largely on nitrogen from conventional agriculture. By allotting 20 25% of the arable land to nitrogen intensive crops (white clover, lucerne), suitable for biogas generation, the National Ecologic Association has estimated that 75% of the arable land yields the same production of foodstuffs as before the introduction of energy harvesting. Thus the conflict between biomass energy production and the production of food may be resolved. 13. Biomass for energy purposes and damage to soil The significant increase in the use of biomass for energy purposes should take place without long term damage to the soil on the arable land. Thus, when projecting further biogas development, it should not be allowed to filter out the solid fraction of manure for power plant fuel (which has been allowed at Måbjergværket). The solid fraction must be recycled on the arable land to improve the quality of the soil. This is particularly important in areas with light sandy soil, which would be especially prone to exhaustion if the solid fraction of manure should be used as fuel.

11 14. Concrete initiatives for the benefit of low income, marginal regions and municipalities. a) Install several thousand locally owned onshore MW wind turbines; municipally or consumer owned and not-for-profit, such as for all water supply, local power distribution and district heating plants. It must be laid down in statutes of the local green public foundations that marginal areas should reap the fruits of their own natural resources. b) Adopt a cost calculation system for combined heat and power plants so that heating will cost the same for all consumers in the collective heating supply systems. Cost equalization is well known in the fields of electricity, gas and telephone, where the price is the same regardless where you live. Many small town residents are presently punished by often being obliged to pay a multiplied heating tariff compared to bigger towns. This is typical a marginal area problem, which prompts people to move from smaller towns. Politically speaking, however, solutions may be found close at hand. c) In almost all of Europe (except Denmark and Sweden) feed-in tariffs, FIT, are used to further the development of renewable energy. The FIT system will via guaranteed and differentiated prices, encourage versatile business development and increased employment. FIT will, contrary to the current Danish surcharge on top of the market price, not increase public spending. FIT does demand new laws and regulations. Decentralized solutions should replace parts of the present energy policy, especially the focus on offshore wind energy. This will be particularly beneficial to marginal areas, where natural resources such as sun, wind and biomass are especially abundant. Also, FIT will according to experience from many countries, make financing more easily available. d) With FIT, the marginal areas may become the nation s primary energy producers. On at least 5,000 farms, one may install biogas units of 200 KW el which at a yearly full load operational time of hours will yield an electricity production of 6 TWh or 17% of the yearly Danish power consumption that amounts to about 35 TWh. Agriculture will be more competitive due to new sources of income such as green energy from solar cells in barns, wind turbines and farm biogas. In Germany, farmers may get half their income from the sale of energy. The present Danish rate of DKK 0.74 per kwh will, however, not be enough for a grand scale farm biogas development. This should be compared with the fact that, by political decision, DONG Energy has been guaranteed DKK 1.05/kWh for 50,000 full load hours in their coming Anholt offshore wind turbine installation. The supply from this installation is more unpredictable than from farm biogas and therefore less valuable.

12 e) When wind turbines are predominant, integration of combined heat and power, CHP, makes wind and sun the cheapest and best way to create a balance in an energy system. Wind turbines and combined heat and power plants will in the future be co-ordinated in a program for upwards and downwards regulation, so that on windy and sunny days, gas engines may be shut down to let solar and wind energy take over the supply of heating. In the heating supply system, wind turbine electricity will always be worth DKK 0.40 to 0.50 per kwh. There are about 600 combined heat and power plants. With a 10 MW electric-boiler in each in average, the downward adjustment potential is about 6,000 MW or twice the maximum present wind turbine output. Investment in electric hot water boilers (up to 90 0 C) is very low, DKK 1,000 to 1,500/KW installed capacity that is 10 to 50 times less than alternative storage solutions. Heating pumps cost from 8 to 15 times that per KW. f) Encourage research, experiments and development in the fields of local energy efficiency and energy supply. The new energy sectors, building up to a commercial breakthrough in Denmark are household wind turbines, solar panels, farm bio gas and integrated systems. Small scale companies are the ones most likely to expand and the potential for growth and employment is great. The companies will need sparring partners, planners and coordinators, networks, market research and facilities for testing and demonstration. Development of human resources is the essential catalyst in the transition process towards renewable energy as well. ********* From a letter from Jane Kruse and Preben Maegaard in the monthly Naturlig Energi, Nov Democratically owned and controlled supply companies Denmark has a long tradition as a country where supply companies are democratically owned and controlled. But with regard to wind turbine development, which for many years was a broad popular movement, it is at present regarded as another form of economic speculation. The interested parties attempts to justify the present wind turbine policy by pointing to CO 2 reduction, employment, export and clean energy do no longer hold water, because the society can achieve all the mentioned advantages only by passing new laws to abolish private ownership and make wind turbine development into a part of the local public energy supply system. Non-profit companies may get long term loans at a low rate of interest, will only pay an inconvenience compensation for the wind turbine sites (as with high voltage power pylons) and finally there is no profit for an investor to be reckoned with. A public or consumer owned energy company will at a final cost price of 50 øre/kwh have profit of øre/kwh, which in the case of a 2 MW wind turbine may amount to about 1 million Dkr a year.

13 A good case for outlying areas According to company rule, such a sum would then be allotted for energy efficiency in public buildings as well as subsidies for biogas, solar energy, electricity vehicles and energy research. Since onshore wind resources are mainly found in poor municipalities in outlying areas, there is a clear incitement to action in this situation. This is a solution that loca politicians may introduce to the electorate and create renewed acceptance for wind turbines. The fact that the real public expenditure per kwh wind turbine electricity will amount to about 35 øre or one third of the Anholt project, should not detract from this line of thinking. Municipalities or consumer owned companies are eminently suited to run the collective supply of renewable energy. What needs to be done politically is not a big deal. All it takes is to pass a new paragraph in the municipal regulations concerning the allotment of sites for wind turbines- that any area designated by the government for the installation of wind turbines, may exclusively be owned by local consumer owned or municipal companies. Clearing up The outcome of this is that it will no longer be possible for speculators and nationwide energy companies to operate in local communities. Societies who in any case are hostile to foreign investors prevent access, which DONG has just realized and acted accordingly. The regulation of 20% local joint ownership has also failed, and may be abolished similar to the regulation concerning compensation to neighbours. When wind energy installations become a part of the public domain, such as roads and high voltage power pylons, which may also create some inconvenience, you do not compensate. Wind turbines have gone to sea, because of the wide spread idea among politicians, that there is no more space for onshore wind turbines, Which is simply not true. There is much more space, but a mental block. A block you do away with by turning wind turbines into a natural part of society s infrastructure. The regulation concerning local ownership combined with FIT calculated costs will be a powerful incitement to municipalities and local consumer owned companies to invest in wind energy.