In this paper we examine the properties of the planar spin model in tw
o dimensions. The spins are assumed to lie on a square lattice and are
confined to lie in the plane but are free to rotate within it. It is
assumed that the spins interact through the dipolar interaction. The g
round state of this model is continuously degenerate, which gives rise
to a zero-energy mode in the linearized spin wave spectrum. The prese
nce of the zero-energy mode leads to a divergence in the ensemble aver
age of the spin wave amplitude. However, it is shown that since the gr
ound-state degeneracy does not arise as a consequence of an exact symm
etry of the Hamiltonian, but, instead is a peculiarity of the dipolar
interaction, the higher-order corrections to the Hamiltonian will indu
ce a gap in the spin wave spectra. The appearance of a gap in the reno
rmalized spin wave spectra will render the ensemble average of the spi
n wave amplitude finite and hence lead to the appearance of long-range
magnetic order at low temperature. In this paper we describe a renorm
alization scheme that yields a self-consistent description of the low
temperature of the properties of this system and provides the basis fo
r a low-temperature expansion.