Danish energy policy mandates the complete phase-out of fossil fuels in the energy supply by 2050. In the long term, electricity, heating, industry and transport energy are to be provided entirely by renewable sources. In the medium term, the 2012 Energy Agreement sets targets of 35% renewable energy in final energy consumption, approximately 50% of electricity consumption supplied by wind power, and a 7,6% reduction in gross energy consumption (in relation to 2010) by 2020. (Danish Ministry of Energy, Utilities and Climate – EFKM, 2012).
Denmark’s energy model offers lessons on how an energy system can be radically changed through sectoral planning, private sector involvement and wide-reaching reforms. Denmark’s highly ambitious energy strategy is supported by a large majority in the Danish Parliament and sets an integrated framework for a transition to a society independent of fossil fuels, providing both long and medium term targets based on technical analysis and a participatory stakeholder process. The energy model provides a diverse set of instruments and mechanisms to achieve system-wide change that is aligned with national climate and economic growth strategies, and leverages public and private investment.
Energy Agreements are negotiated between the Danish Ministry of Energy, Utilities and Climate (EFKM), the Ministry of Finance, the Ministry of Taxation and the Ministry of Environment and Food (for instance regarding the planning perspective of offshore wind).
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