Windmills on a field in the sunset
Windmills on a field in the sunset

Insight

New ambitious Danish energy agreement secured

Insight

New ambitious Danish energy agreement secured

In June 2018, the Danish government signed an energy agreement with the unanimous support of all parties in the Danish parliament. The agreement reaffirms and strengthens Denmark's climate and energy goals leading up to 2030.

When

Key elements of the agreement include a commitment to construct three large new offshore wind farms, new funds for onshore wind and solar energy, a targeted effort to realise energy savings and a targeted strengthening of energy and climate research.


Reaching the 2030 target of 55 percent renewable energy

With this agreement, Denmark is on track to fulfil the government’s objective of transforming Denmark to a low carbon society that is independent of fossil fuels by 2050.

The agreement will enable renewable energy to fully cover Denmark’s electricity consumption by 2030. At the same time, allocated funding will allow Denmark to source 55 percent of its total energy needs from renewable energy by 2030. Finally, the agreement ensures that Denmark fulfils its obligations regarding the UN Sustainable Development Goals.

Denmark’s position as an energy and climate leader

The government’s long-term climate goal is that by 2050, at the latest Denmark, attains its goal of being a low carbon society, where greenhouse gas emissions are offset by the absorption of greenhouse gasses. I am therefore pleased and proud that all the parties in the Danish parliament have united to reach this agreement, which underpins Denmark’s position as an energy and climate pioneer.

Lars Christian Lilleholt, Minister of Energy, Utilities and Climate

Danish Ministry of Energy, Utilities and Climate

The energy agreement includes the following initiatives:

  • By 2030, three offshore wind farms will be established with a total of 2400 MW.
  • EUR 564 million is allocated to a tender process, where different technologies can compete on delivering green electricity at the lowest price.
  • More than EUR 537 million is allocated to expand the production of green biogas. A share is earmarked for organic biogas.
  • From 2021 to 2024, EUR 67 million will be allocated annually to a market-based grant pool focused on energy savings – EUR 40 million for industries and EUR 27 million for energy savings in buildings.
  • A reserve of EUR 54 million in 2025 and subsequently EUR 67 million annually will be allocated to further enhancing the use of renewable energy after 2026.
  • Immediate relaxation of electricity and electric heating taxes, which amounts to approximately EUR 268 million in 2025 (excl. VAT).
  • A modernisation of the heating sector, resulting in green and cheap heating for both companies and consumers.
  • Funds are allocated to handle the discontinuation of the ‘basic financial contribution’ and to enhance utilisation of surplus heat and export of energy technologies.
  • EUR 67 million is allocated to green transportation in 2020-2024, in order to enhance green mobility and transportation.
  • Phase-out of coal in the Danish electricity production by 2030.
  • Energy and climate research will receive a cash injection with a target of EUR 134 million annually by 2024.

Click to read the full agreement (in Danish)

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  • Sarina Lohmann

    Title: Special Advisor – Maritime and transport – Analysis & Partnerships

    Area: Copenhagen

    Phone: +4533920423

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