A slowing economy means trouble for Siemens at a time when the country is losing its lead in wind power

New figures show the country is lagging behind other European countries when it comes to wind power capacity

Denmark risks losing its position as the leading European wind energy nation, according to new figures released by the European Wind Energy Association.

Germany increased its wind power capacity 21 times as much as Denmark in 2008, while Spain increased capacity by eight percent and Portugal tripled its wind power capacity.

Seventeen percent of Danish electricity is produced by wind power, which is still the highest level in Europe, but Germany is catching up with 10 percent.
Denmark's capacity increased by 77 megawatts last year, while Germany upped capacity by 1665 megawatts and Portugal introduced a further 712 megawatts.

The Danish Wind Turbine Owner's Association believes that it will be impossible for the government to reach its goal of wind power meeting 20 percent of Denmark's total energy needs by 2025. Wind power currently accounts for six percent of the total national energy usage.

Kristian Jakobsen of the Wind Energy Association said that to meet this goal, the government would have to double the current generating capacity of 3,180 Megawatts.

Denmark has been lagging behind in increasing wind power capacity due to regulations making it financially unattractive to erect new wind turbines. The law change in December now makes it easier to finance the construction of a windmill.

However, the new law also gave neighbours the right to claim compensation for the construction of a windmill near their land, which experts believe will discourage people from erecting windmills on their land.

‘If a farmer cannot predict how much compensation he will have to pay his neighbour if erecting a windmill will overshadow the natural view, then he could very well think twice about the idea,' said Frede Hvelplund, a professor and windmill expert from the University of Aalborg.

Conservative climate spokesman Per Ørum Jørgensen suggested that the concerns were premature and pointed to plans by the Ringkøbing-Skjern Local Council in Jutland to build a 300 Megawatt wind farm next year.

Another 400 Megawatts of wind power will also come on line by 2012, when the nation's largest offshore wind farm is expected to be completed.

However, while plans to expand wind energy capacity are on the drawing board, falling orders has led Siemens Wind Power to cut 400 production jobs in Jutland.

Employees in Aalborg, Brande and Engesvang will be affected by the layoffs, which the company were linked to the financial crisis.

‘We have to avoid over-capacity to ensure our production costs are competitive and to ensure our long-term success,' said Andreas Nauen, CEO of Siemens Wind Power.