In 2008, the Government agreed on a broad political compromise that ensures the expansion of renewable energy, increased energy efficiency and more research in energy technology.
Based on the Energy Strategy 2050, the Government has initiated negotiations over a new energy agreement. On 21 February 2008, the Government drew up an energy agreement with all the parties in the Danish Parliament, except for the Red-Green alliance. The agreement secured better conditions for wind turbines and other renewable energy types such as biomass and biogas.
The parties agreed that by 2011 renewable energy must account for 20% of Denmark’s energy consumption.
In addition to raising the settlement prices on power from onshore wind turbines, biomass and biogas, the parties agreed to construct offshore wind turbines with a total capacity of 400 MW in 2012. Furthermore, the agreement established a value-loss scheme for neighbours, an option-to-purchase scheme, a green scheme and a guarantee fund. Read more about the four schemes here.
Improved energy efficiency
At the same time it was decided to:
- Strengthen efforts towards significant energy savings: in 2020, the gross energy consumption must have dropped by 4% compared with 2006.
- Make hydrogen cars tax-exempt; for now, the same is applicable to electric powered vehicles (EPV) (until 2012) and DKK 35 million has been allocated for projects with EPVs.
- Allocate DKK 25 million annually during the period 2009-2012 for projects involving other renewable energy technologies, such as wave power and solar panels.
Increased research efforts
As part of the 2008 political negotiations between the Government and the Danish People’s Party over funding to take advantage of globalisation, it was agreed to strengthen efforts within research, development, and demonstrations of energy technology by a total of DKK 750 million for 2009 and DKK 1 billion for 2010.
The 2010 target was fulfilled: the amount in both 2010 and 2011 was DKK 1.1 billion.
Free choice of fuel
As part of the energy policy negotiations being carried out concurrently with globalisation negotiations, the Government, the Danish People’s Party and New Alliance (now called Liberal Alliance) agreed on increased biomass usage and free choice of fuel at centralised power plants.
The agreement stipulates that the Government will accept lifting the ban on using other fuels than coal at Skærbækværket and Avedøre 2, if the biomass usage at the plants is increased by up to 700,000 tonnes in 2011, which corresponds to an increase of Denmark’s total renewable energy share of 1.2%.
New energy agreement
The current energy agreement covers the period 2008-2011. Based on Energy Strategy 2050, which was announced in February 2011, the Government has initiated negotiations on a new energy agreement.
Read Energy Strategy 2050.
Read more about the energy agreement on the Danish Energy Agency’s website.