The Danish Energy Model - Energistyrelsen

1 The Danish Energy Model Innovative, efficient and sustainable The Danish Energy Agency Preface hydro renewables in any electricity system worldwide: 66% in 2015. In 2015, The Danish Energy Model has shown more than 40% of the Danish electric- that through persistent, active and cost ity consumption was based on wind effective Energy policy with ambitious power; by 2020 this figure will likely be renewable Energy goals, enhanced more than 50%. Energy efficiency and support for technical innovation and industrial The Danish government has set a num- development, it is possible to sustain ber of targets for the further significant economic growth, a high development of the Energy sector: standard of living and a high level Continuing low-carbon Energy sector of security of Energy supply, while transition in a cost effective manner reducing fossil fuel dependency and Maintaining Denmark's leading position mitigating climate change.

2 In a number of low-carbon technologies In a nutshell: Energy savings, and systems optimized manufacturing and invest- And ultimately, making Denmark ments in green Energy technology are self-reliance good value for money. on renewable Denmark has reduced the adjusted Energy in 2050. greenhouse gas emissions by more The Danish than 30% since 1990. With current Energy Model measures in place, the Danish Energy documents that Agency estimates that emissions will the transition be approximately 40% lower by 2020 . to 21st cen- surpassing Denmark's legally binding tury Energy is EU commitment of 34%. Denmark has Morten B k doable and the highest contribution of non- Director General affordable.

3 Danish Energy Agency 2 |. benefitted the competitiveness of Danish Table of contents enterprises through lower Energy costs and less exposure to highly volatile fossil fuel Low-carbon economic growth and job creation 3. prices, but also fostered new products and Setting the course 5. industries. Green products and services are Scenarios 5. defined as products which reduce pressure Energy efficiency 6. on the environment, for example Energy Renewable Energy 7. saving products and the service of install- Synergies - Energy system integration ing renewable Energy systems. In 2015. and development 12. Denmark produced green products and Climate change Setting and achieving ambitious services for EUR billion, half of which is targets 12.

4 Related to renewable Energy and one sev- Strong international ties and cooperation 14. enth to Energy efficiency. The green sector Public engagement and acceptance 15. employs almost 67,000 people in Denmark. As an example, the Danish wind Energy sector currently employs more than 31,000. Low-carbon economic workers1 and the Danish export of wind growth and job creation Energy technology in 2015 accounted for The results of clear political direction have EUR billion1. The total export of Energy been significant and convincing: the Danish technology accounted for more than 10%. experience shows that through persistent of Denmark's total exports of goods in 2015.

5 And active Energy policy focused on en- Green Energy technology accounted for hanced Energy efficiency and ambitious use almost 60% of that number. of renewables in a cost efficient manner, it is possible to sustain significant economic 1. The Danish Wind Industry Association (DWIA). growth and simultaneously reduce fossil- fuel dependency while protecting the Danish trends - climate and environment. Energy and CO2 intensity (1990=100). The Danish economy's Energy consumption 100. is among the lowest in the world relative to gross output. Denmark has become 80. one of the world's most Energy efficient economies.

6 Since 1990, Danish GDP has 60. increased by 44%. During this period, the 40. domestic Energy consumption has declined 1990 1995 2000 2005 2010 2015. by 8% and the adjusted carbon emissions Energy Intensity CO2 Intensity by 36%. This development has not only Source: Danish Energy Agency Danish Energy Agency, Tel: +45 3392 6700, website: |3. Declining Energy consumption and carbon emissions Most of the 8% decline in the gross ener- has also been improved significantly. As gy consumption in Denmark between an example, the manufacturing sector has 1990 and 2015 is due to a 28% drop in fos- boosted the gross value added by almost sil fuel consumption relative to the gross 30% but reduced final Energy consump- Energy consumption partly substituted by tion by more than 20% in the period.

7 A 6% increase in contribution from wind Danish households have increased real Energy and a 14% from bio fuels and consumer spending by more than 40% in other renewable Energy sources. In 2015 the period but only increased net Energy renewable Energy sources accounted consumption by almost 10%. for 28% of the gross Energy consumption As for CO2 emissions related to ener- of Denmark. In the same period, Energy gy, the main contributors to the 36%. conversion efficiency has been boosted drop in Danish emissions since 1990 is significantly, reducing conversion losses Energy conversion (electricity and heat by 34% or 9% relative to gross ener- generation) by 56% mainly due to an gy consumption.

8 The main reason for almost tripling of Energy generated from this improvement has been a massive renewable Energy sources, plant efficien- increase in district heating and wind ener- cy and CHP plants. Goods manufacturing gy capacity. These two Energy sources and household consumption contributed have increased their overall contribution with 38% and 58% emission reductions, by 9% compared to the gross Energy respectively. As for power generation, consumption in the period. With a 44%. reduction in fossil fuel based sources and increase in real GDP from 1990 to 2015. power plant optimization has reduced this combined with almost flat net Energy con- sector emissions by 60% compared to sumption, the end-user Energy efficiency 1990 emissions.

9 Total CO2 emissions related to Energy consumption in Denmark 70. 60. 50 Households Million tonnes 40 Services Goods 30. Transportation 20. Energy & Transformation 10. 0. 1990 2015. Source: Danish Energy Agency 4 |. Setting the course io. A low carbon transition of the Danish Energy system not only requires further Denmark has a long tradition of active improvement of Energy efficiency and new Energy policy, initiated as a reaction to low carbon Energy sources, but also further the first oil crisis in 1973. Over the years, a Energy cooperation with Denmark's neigh- broad consensus in the Danish Parliament boring countries to reduce costs and secure has been utilized to transition Denmark's stability and security of Energy supply.

10 Den- Energy system towards reduced Energy mark fully supports the creation of the EU. consumption, increased decentralized Energy Union as a way to improve Energy Energy production and increased utilization security and reduce green transition costs. of renewable Energy sources. Consistent, To further secure a cost efficient low carbon determined and long-term political objec- Energy transition, the Danish government tives have formed the foundation of the has formed a new Energy Commission to low-carbon transition of the Danish Energy analyze the next step after reaching the sector. 2020 target for Energy efficiency, renewable Energy supply and greenhouse gas (GHG).