Wind-Turbine Industry in Denmark - Essay Example

?How and why did the wind-turbine industry in Denmark become so strong? Introduction Wind-turbine industry is flourishing in Denmark partly because of its major advantages over the other energy-generating industries in the country. However, the whole point is in fact due to the availability of strong wind as an important factor in electricity generation in the wind-turbine industry. Wind is a renewable energy source because it continues to exist and will not be depleted. In this case, wind is an important alternative energy source because of its availability wherever else. Strong wind is present in a significant level in Denmark. This makes wind energy as important alternative energy source in the country. In places where there is no sufficient level of wind, the wind turbine industry certainly cannot operate efficiently and effectively. It requires strong level of wind in order to generate enough amount of electricity from wind energy. Electricity is very important in the society particularly in industries, households and every establishment. This means that electricity is an integral part of every political, social, legal, technological, economic and environmental aspect of the society. This is the reason why every nation tries to come up with the right level or amount of supply of electricity for everyone. Around 21.40 percent of electricity in Denmark is derived from wind. Compared this from the United States and other countries in Europe, this is relatively higher and only implies that Denmark has remarkably relied heavily on the wind-turbine industry in its electricity generation aside from other energy source. Certainly there are some important reasons why the wind-turbine industry in Denmark became so strong. It is the main point of this paper to present some of the factors that contribute greatly to the success of wind-turbine industry in Denmark. The proponent tries to identify some factors that contribute to the strong acceptance of wind-turbine industry in Denmark aside from the presence of strong wind energy source. The proponent tries to identify the main actors, linkages, institutions and other important stakeholders behind the success of wind-turbine industry in Denmark. In particular, the proponent also included the main role of these stakeholders particularly on the innovation system. Furthermore, the proponent includes the characteristics of the innovation system and the corresponding impacts on other sectors and technologies. Main actors, linkages, institutions The world is currently faced with the issue of global warming which is said to be as an upshot of human’s economic activities over the long span of time. What was the most intriguing is the issue about the higher amount of greenhouse gases emitted by electricity generation through fossil-fuel based of generating electricity. In Table 1, it is shown that different countries in Europe have substantially contributed higher amount of greenhouse gases emission due to on-going economic activity. However, the good news is that most of the fossil-fuel based of generating electricity can be replaceable by other alternative energy source. These fossil-fuel based of generating electricity can be replaceable by wind as shown in Table 2. Shown in Table 3 is the specific information about the percentage of electricity produced out from wind energy in the United States, Denmark and other countries in Europe. Table 1. Specific average emissions (CO2, SO2, NO2) from fossil fuel-based electricity generation in the different EU-27 Member States in 2007 (European Wind Energy Association, 2009) Table 2. Fossil fuel-based electricity generation replaceable/avoidable by wind (and other renewable electricity generation technologies) in the EU-27 Member States in 2007 (European Wind Energy Association, 2009) Table 3. Percent of Total Electricity Derived from Wind in 2006 (Asplund, 2008) The European Wind Energy Association is very particular with sustainability and eradication of factors that slowly affect the environment in particular. The organization is very particular with studying the level of emitted green house gases in order to justify the feasibility of wind-turbine industry (European Wind Energy Association, 2009). However, it is not only this organization with great concern on the environment. Many concerned citizens that have been educated about the issue on economic and environmental sustainability continue to look forward to innovating possibility. This effort is centered at economic and environmental sustainability in particular. Researchers on the other hand play a major role in the ladder of success of wind-turbine industry especially in Denmark (Kamp et al., 2004). Researchers are the ones responsible to discover intensive information regarding the unveiling of the strong link between science and technology. The society at some point relies on the level or quality of information scientists or researchers usually brought out to the public. At this point, researchers can be the most important assets of the country when it comes to creating something beneficial for the entire country’s condition in every aspect of its business environment. On the other hand, the issue about wind-turbine industry does not only focus on environmental concerns. At some point there is an inclusion about other aspects of the business environment which particularly includes social, political, legal and technological considerations. In the case of Denmark’s success in wind-turbine industry the social, political, legal and technological concerns are of relevant considerations. In particular, there was a need to come up with policies under the authority of the government to address specific issues on generating the right amount of electricity derived from wind (Morthorst, 1999). This specific move put too much advantage on the implementation of electricity-generating strategy out from wind energy source. The issue behind this is profitability and capacity. The government itself is trying to encourage local businessmen, land owners and individual producer to produce electricity out from wind by enticing them of the economic protection under regulatory acts mandated by the government. This is clear enough to understand that it is the government which has specific level of control has obligation to create a harmonious business environment for its citizens, as much as possible. This issue is significantly tied up with the relationship between profitability and capacity. Local wind electricity producer may actually produce enough amount of electricity derived from wind if the government has the best regulatory procedure and policies. Fortunately, in the case of Denmark, the government has essentially encouraged profitability leading forward to higher capacity of electricity production out from energy production from wind energy source. It is definitely expensive to produce energy derived from wind if there is no enough regulatory procedure and policy that the government should undertake. This is very clear in the case of the United States where the government is quiet hesitant to pursue wind-turbine industry knowing that the capacity of its production may just add up to the cost of electricity. In Denmark, it is the reverse aspect of it. The government has encouraged production of electricity by protecting individual producers so as to balance profitability and capacity. What happened in Denmark was that the factors related to the environment became the most important inputs for the decision-making process especially in the establishment of wind turbine co-operatives (Morthorst, 1999). It is therefore clear that the real issue strongly emphasizes the capacity of stakeholders to contribute to the advantages of wind-turbine industry to provide its advantageous aspects in the society. Consumers are always willing to accept whatever offerings to be provided for them for as long as they can benefit out of them. This is in the same case with the wind-turbine energy. However, Denmark sees to it that the individual producers will be benefited so as to continue produce electricity from wind energy at a high capacity and profitability. Thus, it is important that the government has substantially played its share for the success of wind-turbine industry by actually implementing the right policy and governing procedures. On the other hand, it also important to keep everyone informed about some specific issues. Thus, some institutions such as European Wind Energy Association continue to provide the people timely and relevant information in order for them to decide the best possible option given the current issues in line with environmental protection. On the other hand, this can also be done by researchers and scientists that strongly devote their time for the benefit of the whole nation. The information they may gather will also help in the decision-making process. These are all the stakeholders that played important role in the spiraling upward success of wind-turbine industry in Denmark. The role of main actors, linkages and institutions in innovation system In this section the proponent tries to emphasize in detail the main role of main actors, linkages and institutions in innovation system particularly in the implementation of electricity generating wind-turbine energy. The wind-turbine industry has become successful in Denmark and this can be illustrated in Table 4. It is shown in Table 4 that Denmark is the third country in Europe that has successfully reduced their green house gases emission and this is due to the fact that it has substantially replaced a part of fossil-fuel based of generating energy through the wind turbine industry. This is evident as shown in Table 3 of which Denmark’s main source of electricity is generated by wind energy reaching to 21.40 percent in 2006. Table 4. Total emissions (CO2, SO2, NO2) from fossil fuel-based electricity generation already avoided by wind energy in the EU-27 Member States in 2007 (European Wind Energy Association, 2009) Kamp et al. (2004) believed that the fast pace development of wind turbine in Denmark is supported by the main issue about innovation system, a ‘science-push’ one because the whole thing is based on scientific research. Kamp et al. presented that the success of wind-turbine industry and its corresponding innovation in Denmark is the closer contact among turbine producers, turbine owners and researchers. It is therefore clear in this case that each of these players have substantial role to play. The turbine producers strongly coordinate with turbine owners due to issues such as design but the whole thing is about stimulating needs and addressing such needs. There is a strong inclusion of business particularly on the marketing side. On the other hand, inclusion of researchers in the scenario is a clear indication that Denmark remarkably applies the holistic scientific approach in the innovation system. Illustration 1. The consolidated efforts among actors, linkages and institutions in the innovation system (Lacasa et al., 2004). Shown in Illustration 1 is just a replica on how the innovation system in the wind-turbine industry in Denmark works. The interaction between turbine producers, owners and researchers is a linkage to creating demand acceptability by enhancing their knowledge or skills in electricity generation by wind energy. Nielsen (1994) believed that public participation is necessary for the success of wind power in Denmark. Public participation for wind power on the other hand can only be realized if the public itself is given or supported with the right information which eventually be coming from experts, business owners, researchers and other related institutions. Thus, the link between knowledge or skills and demand or social acceptability is an important concept in the innovation system. Thus, it is important to understand that the role of European Wind Energy Association and the government is to actually stimulate the needs or demand for electricity out from wind energy source. They provide substantial information and in the long run what they gave have important impact on stimulating needs and in the decision-making process. If these actors have successfully introduced the right and necessary information, then the whole innovation process continues until the entire need or demand will be substantially addressed. Characteristics of the innovation system It is also important to understand that the innovation cannot be successful without prior consideration of the needs or social acceptability. Thus, there is a right process of stimulating needs prior to the success of wind-turbine industry in Denmark. In order to understand this in detail, the proponent tries to emphasize the characteristic of innovation system for the wind-turbine industry in Denmark. The innovation system for the wind-turbine industry in Denmark certainly moves into a fast pace. This is because of its wide acceptability because the innovation system itself is a means of stimulating demand or social acceptability of wind power. The government works hard to integrate improved legislations particularly the wind turbine producers who could particularly benefit from this government move (Sperling et al., 2010). This is a matter of integrating the right procedure. The innovation system has to be integral in people’s lives because wind-turbine industry particularly talks about sustainability. In this case, the government has viewed it is significant to motivate the wind-turbine energy producers first. Another important characteristic of the innovation system for wind power generation in Denmark is related with more hands on procedural approach. This is evident from the study conducted by Smit et al (2007) revealing that the success of Denmark’s wind turbine industry was due to technology-specific innovation system by engaging in the whole process of learning, doing and using it. This means that the innovation system is very dynamic because learning has strategically become useful due to dynamic implementation. There is a two-way communication process in the innovation system for wind power generation in Denmark. This is evident by the need to go for renewable energy source and economic viability of producing electricity (Greenblatt et al., 2007; Sahin, 2004). In short, the two-way communication process occurs between consumers and producers. For the entire innovation process to be effective, the consumer must necessarily have the appropriate knowledge about the new technology they are using. The whole thing about this is highly integrated with several social issues such as those particularly in line with economic and environmental sustainability. Producers are gaining feedbacks from the customers and such of these are the necessary information that needs to be enhanced in order that the whole innovation process to be successful. Finally, the innovation system for wind power is characterized as an opportunity for achieving economic competitive advantage and harnessing the maximum potential of wind as eventually to be conventional source of energy through innovation in technology and existing legal aspect of it (Gipe, 1991; Agnolucci, 2007). Innovation’s impact on other sectors and technologies Certainly, the success of wind-turbine industry in Denmark has greatly contributed significant impact on the country’s economic competitive advantage. In the first place, the more producers that will exist for wind energy production, the more beneficial it is for consumers. This is a challenge for the government knowing that producers have to be profitable as well while producing the maximum required output. However, the issue about this does not only focus on the entire economic activity. There are other essential impacts and they can be observed from the point of view of other sectors and technologies. The existence of wind for production of electricity is also a means of trying to regulate the price of other possible sources of energy. This balances the entire economic activity in the country particularly with the other energy-producing sectors in Denmark. Thus, there is a good promise to lower down prices and eventually there will be competition of energy prices in the local setting. However, this is just a more positive outlook of looking at the entire scenario. There can be more practical way of looking at this. For instance, as mentioned earlier, Denmark also relies on fuel-based of producing energy. However, the institution of wind power is a significant challenge for the conventional ways of producing energy. Mostafaeipour (2010) believed that the global wind turbine industry is a good means to minimize dependency of export, sustain clean environment and maximize economic advantage of the country. Crawford (2009) added that it is good to invest in wind power production because of its long-term performance and return on investment. However, there is a significant issue that needs to be considered behind all these good promises. The wide acceptance of wind power basically will encourage more producers to invest in it. However, considering that the entire innovation process is tied up to economic activity, then there will be a considerable challenge on the start up cost production of machine considering that turbine producers may increase their price in the long run because the higher demand may also result to another level of innovation (Bishop and Amartunga, 2008; Ronold and Christensen, 2001). Conclusion Wind-turbine industry is operating for how many decades in Denmark and until now it continues to operate with another level of innovation at hand based entirely on stimulating demand or social acceptability. On the other hand, energy consumers in Denmark are widely informed making it not hard enough in the country to market energy coming from wind. All of these can be due to the fact that innovation certainly plays a major role in everyone’s life. References Agnolucci, P. 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