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Overview
Denmark has for many years supported electricity production from renewable energy sources through various support schemes. In recent years, a shift has been made from technology specific support to a higher degree of technology neutrality and a more marked based approach through e.g., multi-technology tenders. Support for certain technologies has also been phased out recently. This includes biomass, where a premium tariff scheme was phased out in 2019 (but remains for depreciated installations) and biogas, where a scheme including direct grants for end-users was phased out in 2020. Concerning biogas, it was however later decided to introduce a new subsidy tender for biogas and other green gasses in the period 2024-2030. This has not yet been adopted (NECP Denmark, 2019; Climate Agreement 2020).
In the 2018 Energy Agreement the Danish Parliament agreed to aim for a renewable share of total energy consumption of approximately 55% in 2030. This is expected to result in a renewable share in electricity above 100% of consumption by 2030 (NECP Denmark, 2019). -
Summary of support system
- Loan (loan guarantees for local projects) - guarantees for loans for local owner associations and initiative groups wishing to establish certain RES installations
- Premium tariff (test wind turbines and depreciated biomass installations) – support through a premium tariff for test wind turbines within and outside national test centres and for depreciated biomass installations. A premium tariff scheme for biomass in general was phased out in 2019.
- Tenders (offshore wind farms) - site- and size-specific tenders for offshore wind farms decided in broad political agreements.
- Tenders (technology neutral) – tenders covering offshore wind established following an unsolicited application procedure, onshore wind, solar PV, wave power and hydroelectric power.
- Net-Metering – exemption from certain public tariffs and electricity tax on the electricity produced and consumed within one hour.
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Competent authorities
DEA
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Overview
In Denmark, heat production from renewable energy sources is generally supported by the absence of energy tax and CO2 tax which is levied on fossil fuels.
Further, several subsidy schemes support the deployment of heat pumps both for district heating production and for individual heating. Besides the three schemes covered below that directly support deployment of heat pumps, the so-called scrapping scheme and decoupling scheme, that support scrapping of oil- and gas-burners and decoupling from the gas grid respectively, also promote heat pumps and other renewable technologies by subsidising termination of the use of fossil alternatives.
Support for other specific technologies until recently included a scheme with direct grants for end-users of biogas including for heat production. This was phased out in 2020, but it was later decided to introduce a new subsidy tender for biogas and other green gasses in the period 2024-2030. This has not yet been adopted (NECP Denmark, 2019; Climate Agreement 2020).
Denmark expects the renewables share in the heating and cooling sector to increase from 53.5 % in 2020 to 59.9 % in 2030. This share is expected to be achieved mainly through the use of biomass and heat pumps (NECP Denmark, 2019). -
Summary of support schemes
- Subsidy (heat pumps) – three different schemes support the deployment of heat pumps both for district heating production and for individual heating
- Tax regulation mechanism (absence of energy tax and CO2 tax) – The energy tax does not cover biomass for heat production and the CO2 tax only applies to fossil fuels
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Competent authorities
- DEA
- DTA
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Overview
In Denmark, the support schemes for RES-T focuses on reducing taxes for zero and low emissions transport as well as mandating that biofuel is mixed in with conventional fuels.
Denmark has set a general goal of a reduction of greenhouse gas emissions of 70% by 2030. For the RES-T sector, Denmark expects to phase out new purchases of fossil fuel-based cars by 2030. It is expected that by 2030, 19% of the energy consumption in the transport sector will be from renewable sources. (NECP Denmark, 2019) -
Summary of support schemes
- Biofuel quota – For petrol and diesel fuels, at least 7.6% of the volume must be biofuels and the total greenhouse gas output for fuels must be reduced by 6% (compared to 2010 levels).
- Electricity tax reduction for charging EVs – The electricity tax is reduced for charging EVs at corporate premises.
- Reformed vehicle registration tax – The registration tax for new vehicles is reduced, but a second charge is applied to petrol or diesel-driven vehicles and to plug-in hybrid vehicles at a reduced rate. Until 2030, the tax reduction is gradually tapered off.
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Competent authorities
- DTA
- DEA
- DRA
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Summary
Denmark expects to achieve a renewable share of total energy consumption of approximately 55% and a renewable share in electricity above 100% of consumption by 2030. Targets for individual technologies have not been set (NECP Denmark, 2019). This section covers the permitting and authorization process for offshore wind, onshore wind, ground-mounted solar PV and rooftop solar PV. Offshore wind is treated in a separate section due to the distinct licences required. These technologies have been chosen as the most relevant based on the following considerations:
Offshore wind was in 2019 expected to account for 44% of the renewable energy share in the electricity sector in 2030 – an increase from 25% in 2021. Since then, it has been decided to establish two so-called “energy islands” with a total capacity of 5 GW by 2030, which will further increase the share of renewable energy from offshore wind turbines (NECP Denmark, 2019; Climate Agreement, 2020).
Onshore wind is expected to account for 30% of the renewable energy share in the electricity sector in 2030. This is a decrease from 42% in 2021, reflecting the increase of offshore wind but also the fact that the number of onshore wind turbines is to be gradually reduced towards 2040. The production is however still expected to increase in the coming years as smaller existing turbines will be replaced with newer and more effective ones and the share will remains significant (NECP Denmark, 2019).
Solar PV is expected to account for 12% of the renewable energy share in the electricity sector in 2030 – an increase from 6% in 2021. These numbers cover a five-fold increase in capacity from 2017 to 2030 and an even larger increase is thought to be needed to achieve Denmark’s target to reduce greenhouse gas emissions by 70% by 2030 relative to 1990. The expansion towards 2030 is generally expected to be mostly covered by utility size ground-mounted plants, but as especially the larger rooftop solar PV installations placed on commercial and industrial buildings also offer significant growth opportunities both forms are covered (NECP Denmark, 2019). -
Sequential order of process steps
1. Site selection
2. Electricity Production License
3. Application preparation process (wind energy offshore only)
4. Administrative authorization
5. Grid connection -
Competent authorities
- DEA
- DEPA
- Minister for Climate, Energy and Utilities
- Municipal councils
- DTCHA
- DCA
- Conservation Board of Appeals
- DMA
- DCD
- DSOs
- TSO
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Overview
There are no measures on energy sharing or energy communities in Denmark, as legislation does not currently support the sharing of RES between individuals. However, a scheme, which supports local citizen initiatives to secure loan guarantees for feasibility studies of RES plants, does exist in Denmark. Though, this does not extend to sharing energy or creating energy communities as the support no longer applies past the planning stages. On the other hand, a measure on net-metering allows for prosumers to pay a reduced charge on electricity produced from own solar panels or windmills and consumed within one hour.
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Summary of regulations
- Net-metering – All electricity prosumers are exempted from paying an environmental charge on electricity that is produced from renewable sources and consumed within one hour.
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Competent authorities
DMoCEU
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Overview
Danish policies focus on increasing the accessibility and recognisability of RES installers by providing for a certification scheme and training scheme. On the other hand, another strong policy from the Government is the Order mandating that all ministries achieve a collective energy saving by 2030.
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Summary of policies
- RES certification programme – Companies and installers of small RES installations can voluntarily pursue a training and certification programme under the RES certification programme.
- VPO – Certification programme for additional accreditation for the installation of heat pumps.
- Energy efficient public institutions – A circular by the Ministry of Climate, Energy and Utilities has mandated that public institutions reach an energy saving goal of 42,480 MWh by 2030, compared to 2020 levels.
- EUDP – The aim of the EUDP is to further the development, demonstration and market introduction of new energy technologies.
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Competent authorities
DMoCEU
