Policies in Denmark

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).

• 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

• DEA
• DTA

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).

1. Site selection
2. Electricity Production License
3. Application preparation process (wind energy offshore only)
4. Administrative authorization
5. Grid connection

• DEA
• DEPA
• Minister for Climate, Energy and Utilities
• Municipal councils
• DTCHA
• DCA
• Conservation Board of Appeals
• DMA
• DCD
• DSOs
• TSO