D
enmark is recognised around the world for being a
pioneer for renewable energy, its stance in the fight
against climate change and for successful policies
on creating green growth. Denmark, in particular, enjoys
recognition for its success in continuously transforming its
society in a sustainable way with a long-term perspective to
become a green society through competitive industries and
ambitious policies such as becoming the world’s first fossil
fuel free country by 2050. Also internationally, Denmark is
a frontrunner for initiatives and collaborative endeavours,
which has resulted in remarkable Danish rankings and
figures related to renewable energy: unchanged, and water consumption has decreased by 40%.
These achievements have given the country an important
voice in the international energy arena.
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The world’s best energy system in 2018, according to the
International Energy Agency, for the third consecutive
year in a row.
The world’s largest share of renewable energy in its
production of electricity without compromising the
security of supply.
53% of electricity consumption in 2017 generated by
renewable energy.
43.6% of electricity in 2017 generated from wind power
with a target of 50% by 2025.
The International Energy Agency, which is the global
energy authority, has highlighted Denmark’s energy model
at several occasions as an international inspiration, since
the country manages to both provide low energy prices
with a high share of variable renewable energy sources
and a security of supply of 99.99% of the time. Wind power
currently constitute one of the most important components
of the green energy transition in Denmark, and the wind
turbines in Denmark currently produce more than 40% of
the total power, which is yet another world record. The
strong position within this field is not only for the benefit
of Denmark. Being a European leader in export of energy
technologies, Denmark is among the countries that can
deliver the necessary solutions to remedy negative effects
of climate change on an international level. All these are
reasons for why Denmark is internationally recognised as a
“pioneer” country in the renewable energy field.
Attaining the position required decades of sustained efforts
to balance economic growth, security of energy supply and
necessary transitions into cleaner energy sources. This
green brand has been of much value to Denmark through
its contribution to growth and job creation in sustainable
sectors. Over the past 35 years, Danish GDP has increased
by more than 70%, while energy consumption has remained
The Danish Energy Model
The Danish Energy Model has demonstrated how energy,
carbon emissions and dependency on fossil fuels can
be mitigated while simultaneously sustaining economic
competitiveness and a high standard of living. The model is
characterised by:
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Broad political agreements in parliament that ensure
achievements of long-term targets
Holistic energy planning approach, a focus on energy
efficiency and support for renewable energy through
synergies between taxation schemes and policies
Strong public-private sector corporation that enhances
innovation in the energy field
Environmental taxes that reflect environmental costs of
production and consumption
Effective integration of renewable energy source in the
energy system.
These principles have helped Denmark become one of the
world’s most energy efficient economies with an energy
consumption among the lowest in the world relative to
the size of its economy. Although analyses show that the
initial costs of introducing renewable energy sources in
the Danish system was high, declining renewable energy
prices combined with increasing prices for fossil fuels have
boosted the competitiveness of renewable energy sources
like wind and solar relative to traditional sources. This
highlights the importance of the long-term perspective that
characterizes the Danish energy model, which has ensured
synergies between long-term economic growth and an
ambitious approach in tackling climate change.
Denmark has been through an energy transition
Wide-ranging policies and regulations were necessary in
order to lead Denmark to become one of the frontrunners
in global rankings on renewable energy. Only a few decades
ago, Denmark had an exceptionally high dependence on oil
in the energy mix, peaking in 1973, when 90% of the energy
supply was based on imported oil. Thus, the oil crisis in the
70’s triggered economic difficulties and severely challenged
the security of energy supply in Denmark. This stimulated a
shift from an oil-based to a coal-based Danish electricity
production in order to decrease dependency on imported oil.
New energy plans increasingly started to focus on domestic
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