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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, 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
