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Islanders gain from energy success story
| Company: | Samso |
| Location: | Denmark |
| Sector: | Energy |
| Website: | www.energiakademiet.dk |
Samso’s energy transformation has brought a range of benefits for the island’s 4,300 residents. Cheaper energy means bills that are around 10-20% lower than before. In the past, the large quantities of straw produced by the island’s farms were simply burnt and wasted. Now it provides a readily-available source of biomass to power domestic heating systems, providing heat and hot water.
Onshore wind turbines offer investors greater returns due to the higher cost of installing the offshore turbines. Investors receive a dividend every three months of around 7-8% for onshore turbines, and 6% for offshore projects.
Islander Jorgen Tranberg is one of those who has invested in Samso’s new energy sources. A dairy farmer, he saw an opportunity to invest in wind power, and now owns a Bonus 1 MW wind turbine on his property and half an offshore wind turbine rated at 2.3 MW. His investment totalled 19 million Danish crowns [approximately £2.5m].
Negative carbon footprint
Imports of fossil fuels to the island have been reduced by 60-70%. Samso’s renewable energy generation, from the 21 wind turbines dotted across the countryside and standing in the sea off the coast, has meant it has become a net exporter. The offshore wind turbines produce energy which can be sold back to the mainland at a fixed price. The result is the island’s negative carbon footprint.
There is a further important economic spin-off for Samso. Construction and maintenance of the turbines, the need to install solar panelling and better insulation in homes, and the demand for new heating systems have all given craftsmen and builders more work on their island and a chance to develop their businesses and skills.
Plumbers, contractors and carpenters have gained qualifications in refurbishing energy-saving homes. One local blacksmith has made renewable energy systems an important part of his company’s profile.
Spotting opportunities
No funding for the project was provided by government, although existing support for renewable energy projects could be used. Financially, the driving force for change came largely from private investment by residents who spotted the opportunities all around them on the island, which stands nine miles from the mainland.
The total investment came to $84m. Most of the investment is bank-financed, and ownership structures vary, including private stock and municipal ownership.
The success of Samso’s citizens has provided a showcase – and a shop window - for the country’s thriving wind turbine sector. Denmark is home to the world’s largest wind turbine manufacturer Vestas, which in 2008 reported a 67% rise in its order backlog, which is worth €7bn.
Can-do spirit
Jorgen Tranberg said: “You don’t invest 19 million crowns just for the fun of it. Large scale investments have to be economically viable. First of all you need determination and can-do spirit, and then you need an economic foundation to make it possible.”
Another resident, Brian Kjaer, described the savings he has made from installing a new domestic heating system and a windmill to generate electricity: “The wood pellet furnace and solar panels are saving us about 10,000 Danish crowns a year in heating costs [around £1,300]. The windmill has reduced our electricity bill by 3– 4,000 crowns a year [around £460].”
Islanders firmly believe their experiences are applicable elsewhere. Politicians, scientists, activists, journalists and diplomats from around the world have made the ferry crossing to learn about Samso’s success and take the lessons home, as well as boosting the island’s important tourism industry.
Resident Soren Hermansen was a driving force behind persuading other islanders of the benefits of the change at the outset, and implementing the renewable energy strategy. Samso has become a centre of expertise, and he now runs the Samso Energy Academy, a research centre for clean power.
Widespread public participation, local ownership and a willingness of people to invest are the ingredients of Samso’s change, he says. “We were a first mover. We thought local. What we did benefits us and the local economy. We acted locally. But now this is an example for the world in what can be done.”
Updated: 2 June 2009
