Energy Strategy 2050 – from coal, oil and gas

A fully financed transition
Figure 5.1 Financing the government’s proposal
A fully financed package of initiatives
The government’s new climate and energy policy
initiatives up to 2020 are fully financed. This also applies
to tax revenue losses resulting from lower energy
consumption and in particular lower consumption of
fossil fuels. This implies, that the transition to fossil fuel
independence will primarily be financed by the energy
consumers, who will also reap advantages in the form of
lower fuel costs and better security of supply.
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Increased energy efficiency in
buildings and businesses
Estimated at
DKK 0.6 billion in 2020
New initiatives for renewable
energy expansion
Estimated at
DKK 1.4 billion in 2020
State revenue losses due
to reduced consumption
of fossil fuels
Estimated at
DKK 1.6 billion in 2020
Other new initiatives
Estimated at DKK 0.2 billion
over the period 2011-2014
Energy Strategy 2050 – from coal, oil and gas to green energy.
Financed through energy company
tariffs and thus by energy consumers
(electricity, heating, oil, gas).
Financed primarily through the Public
Service Obligation (PSO), which is charged
over the electricity bill. In addition, a new
gas PSO scheme will be introduced
and charged over the gas bill.
Financed through the introduction of a
security of supply tax which will contribute
to a revenue-neutral green transition.
Financed by re-allocating existing funds
in the energy and climate budget,
including remaining funds from the existing
scheme for scrapping oil furnaces.
Financing energy saving initiatives through grid
tariffs and energy consumers
The costs of energy companies relating to energy saving
initiatives are covered through the companies’ grid
tariffs, and thus ultimately paid by energy consumers.
The grid tariffs are subject to financial regulation set in
advance. The regulation is implemented by executive order
following political negotiations. If the increases in the
obligations are distributed proportionately on the basis
of current consumption, the higher costs will be more or
less equally distributed between electricity consumers,
district heating consumers and oil and gas customers.