In recent years, Denmark has gained considerable international attention as one of the first movers in implementing a green energy transition – the so-called grøn omstilling. In order to achieve an energy system independent from fossil fuels by 2050, Denmark is pursuing an integrated policy approach that takes all energy sectors into account. In 2014, wind energy covered 39 percent of Danish electricity demand. Wind and bioenergy – the latter in particular for the conversion of combined heat and power plants – will play key roles in the Danish energy transition.
This paper invites you to take a deeper look at Danish energy policy in general and at the electricity sector in particular. What are the major objectives of Danish energy policy? What is the logic behind an integrated approach that encompasses all energy sectors? How has market integration evolved in the Nordic countries? How does the offshore wind tendering system work? What are the principles underlying grid expansion within Denmark? What types of consumer participation schemes exist?
This paper aims to explore some of the lessons learned from the Danish experience. At the same time, this paper can serve as an introductory overview to the Danish power system and the policies that govern it. The paper is part of Agora Energiewende’s “Lessons Learned from Denmark” series.