Dong Energy, the nation’s largest fossil fuel energy provider, is increasingly turning to wind
Investing several billion kroner in wind energy is paying dividends for the nation’s largest power company, Dong Energy.
Formed in 2006 as a merger of Dong, Energi E2, Nesa and Københavns Energi, the company has long been a producer of coal, oil, bio-mass and thermal-based energy. But in recent years it has invested heavily in wind power, including several wind farms in the UK. And the profits from those wind energy investments are now challenging Dong’s returns from its fossil fuel-based energies. Dong’s price for wind power energy is slightly lower than for its other energies, but its sales are bringing in income at twice the profit margin. While wind power made up only 8 percent of the company’s overall energy produced, it brought in 39 percent of the company’s energy income in 2008.
Dong spokesman Andreas Krog said the costs of establishing a wind farm were quite high but in the long-term the investments would be more than worth the price