Denmark to boost offshore wind energy

COPENHAGEN, March 22 (Reuters) - Danish governing and opposition parties agreed on Thursday to boost offshore wind energy in the country, already the world leader in wind power, officials said.

Two offshore wind parks with total capacity of 1,000 megawatts (MW) will be built off Denmark by 2020, in a deal between the centre-left government, an allied leftist party and all opposition parties except one, government officials said.

Denmark has installed wind power capacity of 3,955 MW, which meets about a fifth of the nation's total electricity needs -- the highest proportion in the world.

Minister for Climate, Energy and Building, Martin Lidegaard, said a 400 MW wind farm would be built at Horns Rev, in the North Sea off the west coast of Jutland, where a 160 MW park and a 209 MW second phase are already in operation.

Later, a 600 MW wind power park would be built at Kriegers Flak in the Baltic Sea between Denmark and Sweden, he said.

The government aims to boost the use of renewable energy to 50 percent of total electricity consumption from around 25 percent, and the new wind parks are central to that target.

"Almost 35 percent of our energy will come from renewable energy sources and nearly 50 percent of our electricity consumption will come from wind," Lidegaard said in a statement.

Also, carbon dioxide (CO2) emissions are to be reduced from the 1990 level by 34 percent, by 2020, and total energy consumption will fall 12 percent from the 2006 level, he said.

The government has estimated the measures will increase the energy bill of an average Danish household by about 1,300 crowns ($230) per year, the ministry said.

Lidegaard said the new energy plans would help keep Danish companies competitive and shield Danes from volatile increases in fossil fuel prices.

On Friday, the government is expected to reach a broad deal with the opposition Liberals and Conservatives on a new budget law to steer future expenditure by introducing new spending ceilings for the central government, regions and municipalities.

($1 = 5.6374 Danish crowns) (Reporting by Erik Matzen via Copenhagen newsroom; Editing by David Hulmes)