Policies in Denmark

Denmark expects to achieve a renewable share of total energy consumption of 74 per cent by 2030.  The share of renewable energy use in electricity production (RES-E) was 79 per cent in 2023. It is expected to exceed 100 per cent in 2028. In the heating and cooling sector, the share of renewable energy (RES-H&C) is expected to reach 81 per cent in 2030. Share of innovative renewable energy sources, such as geothermal, large heat pumps for production of district heating, PtX, exploratory wind turbines, renewable generation associated with energy islands, storage capacity for stocks linked to wind turbines and photovoltaic parks, seasonal storage for solar thermal, and pyrolysis gas, is expected to be 24 per cent in 2030, exceeding the 5 per cent target (NECP Denmark, 2024). 

This section covers the permitting and authorization process for offshore wind, onshore wind, ground-mounted solar PV, and rooftop solar PV. These technologies have been chosen as the most relevant in the Danish NECP. Offshore wind is expected to increase from 24 per cent in 2022 to 65 per cent in 2030 (NECP Denmark, 2023). 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). Solar is expected to account for 46 per cent of the renewable energy share in the electricity sector in 2040 – an increase from 6 per cent in 2022(NECP Denmark 2023). 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).

With the 2022 Climate Agreement on Green Power and Heat, an agreement was reached to launch a service check and analysis work to remove regulatory barriers and shorten authorization processes for the development of offshore wind. Additionally, a number of initiatives for faster planning processes in municipalities connected to onshore wind were launched. Multiple actions for simplifying permit-granting process for both onnshore and offshore installations have been taken as well as establishin one-stop shops-Danish Energy Agency (NECP Denmark, 2024). 

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

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).

• 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.

DEA