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Home Latest Wind Energy News Lykke Friis looks to implement dynamic tariff for wind energy

Lykke Friis looks to implement dynamic tariff for wind energy

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A new report commissioned by the Danish Minister for Climate and Energy, Lykke Friis, recommends that the way electricity generated by the nation's wind turbines should be changed, writes financial daily newspaper Børsen. "One of the main challenges regarding tomorrow's electricity system is to find out how to make the most out of our fluctuating wind energy. The report concludes that instead of charging an average price, the price should be what it costs to send current through the grid during the next hour," Lykke Friis told Børsen, adding that she will now look at what changes to the current law will be required. The minister indicates that although a dynamic tariff may not be of great importance right now, the situation in the future will change as electric cars become a developing part of the country's mass transport system and heat pumps are installed in an increasing number of Danish homes.

Implementing a dynamic tariff for wind power, which in practice means lower prices when it's windy and higher prices when it isn't, will require the nationwide installation of smart meters that can tell consumers what the price for the next hour will be. According to Børsen, smart meters are currently installed in 700,000 Danish homes and there are plans to install 800,000 more within the next 12 months. But that will still leave around 1.5 million Danish households needing a smart meter, which costs approx. DKK 1,500 to install. At present, the energy companies have footed the bill for providing smart meters, but consumers may be asked to pay part of the cost in the future.

Source: Denmark.dk


Last Updated on Tuesday, 27 July 2010 04:40  

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