Energy Strategy 2050 – from coal, oil and gas

Background The government will
Good framework conditions for future
electricity and heat production
A large part of Denmark’s consumption of fossil fuels, in
the form of coal and gas, is used to produce electricity
and district heating. Extensive conversion of the electricity
and heating sector to renewable energy is an essential
step towards independence of fossil fuels.
Since supply technologies and infrastructure in electricity
and heat production generally have very long life spans,
in many cases there will be only one opportunity to convert
before 2050. It is anticipated that a great number
of Danish plants will either be taken out of operation or
will wear out before 2020 and have to invest if they are
to maintain production of heat . All things being equal, it
will be cheaper to replace worn out installations than to
replace still functioning installations. Therefore, the most
appropriate solution is to make the shift away from fossil
fuels when an existing plant is worn out. Furthermore,
it must be anticipated that electricity consumption will
increase as an ever greater share of energy consumption
is electrified. It is therefore important that frameworks are
established today which underpin investments in technologies
bringing us closer to the 2050 target.
Furthermore, in the short term, the need for new RE
capacity is justified by the target of a 30% share of renewables
by 2020. Meeting and upholding this target will
require significant efforts in the years to come.
Being the most developed and most cost-effective
sources of energy, biomass and wind will play primary
roles in an energy system without fossil fuels. In the
long term, other technologies may also come into play.
Continued support will therefore be necessary for the
development of a wide range of RE technologies.
As a general rule, the government’s goal of fossil fuel
independence means no use of fossil fuels in 2050.
However, the government will not a priori exclude some
use of coal with CCS, if this turns out to be an efficient,
feasible and environmentally appropriate solution in a
green transition.
• Launch an in-depth review of electricity supply legislation
and regulation in order to ensure that incentives
and rules support the transition to fossil fuel independence.
In the long term, other areas of energy
supply will also be reviewed
• Allocate DKK 20 million for strategic energy planning
partnerships between municipalities, local companies
and energy companies. These funds are to promote
the integrated development of energy demand and
energy supply which underpins the transition to fossil
fuel independence. This is to take place e.g. through
the expansion of district heating
• Allocate DKK 10 million for demonstration of large
heat pumps in the district heating sector, and analyse
the conditions for, and implications of, the phasing-in
of large heat pumps
• Allocate DKK 20 million for geothermal energy exploration
projects
• Extend the existing PSO scheme that supports small
electricity-producing renewable energy technologies
such as wave power, bio-gasification and solar
photovoltaics for a further four years, so that a total
of DKK 100 million is allocated for the period
• Allocate DKK 10 million to support demonstration
projects on solar heating for household solutions,
including use of solar heating in combination with
other RE solutions such as heat pumps. Efforts will
also include an information campaign and the launch
of a certification/quality assurance scheme
• Work for a revision of the EU’s CHP Directive towards
an efficient energy system in a future EU free of fossil
fuels.
Energy Strategy 2050 – from coal, oil and gas to green energy.
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