324 L. BOSCÁN ET AL.
prices dropped in the 1980s, Danish policymakers responded by further
increasing taxes to consolidate the transition away from oil (Sovacool et al.
2008; Sovacool 2013). The creation of the Danish Energy Agency (in
1976) and the Energy Ministry (in 1979) institutionalized energy policymaking. Except for the reconsidered nuclear power, all the initiatives put
forward in the first energy plan were set in motion within a decade’s time.
The second energy plan (1981) set goals of securing cost-efficient
energy supplies for society, increasing security of supply, and decoupling energy consumption from economic growth (Meyer 2000). From
there, the Danish economy has grown while reducing energy consumption, carbon emissions, and increasing efficiency. Today Denmark’s energy
intensity and carbon intensity are among the lowest of the 30 states of the
International Energy Agency (IEA) (International Energy Agency 2017).
Among other things, the second energy plan proposed increasing the
extraction rate with extraction by the Danish state in North Sea oil
and gas, increasing energy efficiency standards in new building projects,
and securing resources for R&D. The plan continued with increasing
district heating and promoted the expansion of Combined Heat and
Power (CHP) plants, including decentralized CHP. Later, in 1985, the
Danish parliament introduced adjustments to the initial heat planning
act: domestic resources would have priority in heat planning. Natural
gas, surplus heat from electricity plants, and biomass (straw, waste, and
wood) would be prioritized over coal. Furthermore, a still present feature
of Danish energy policy was introduced at that time: all new power
plants must include the possibility of cogenerating heat and power. Only
by exception, the government would authorize building condensation
(i.e., electricity-only) thermal units (Mortensen and Overgaard 1992).
The Danish government also prohibited electric heating in 1988 in areas
served by district heating and natural gas networks, effectively granting
monopoly power to district heating suppliers.
Cogeneration has been a key factor in the achievement of energy efficiency in Denmark and the country is, by far, a European leader in this
respect (Sovacool 2013). At the end of 2016, 69% of all thermal electricity production was produced together with heating, and 65% of all
heating production was simultaneous with thermal electricity production.
Similarly, energy efficiency measures in buildings (insulation, new heating
installations) have increased the heated area in Danish dwellings with a
simultaneous decrease of final energy consumption per square meter. Final
energy consumption for heating purposes (space and water heating) has
also remained relatively stable.
prices dropped in the 1980s, Danish policymakers responded by further
increasing taxes to consolidate the transition away from oil (Sovacool et al.
2008; Sovacool 2013). The creation of the Danish Energy Agency (in
1976) and the Energy Ministry (in 1979) institutionalized energy policymaking. Except for the reconsidered nuclear power, all the initiatives put
forward in the first energy plan were set in motion within a decade’s time.
The second energy plan (1981) set goals of securing cost-efficient
energy supplies for society, increasing security of supply, and decoupling energy consumption from economic growth (Meyer 2000). From
there, the Danish economy has grown while reducing energy consumption, carbon emissions, and increasing efficiency. Today Denmark’s energy
intensity and carbon intensity are among the lowest of the 30 states of the
International Energy Agency (IEA) (International Energy Agency 2017).
Among other things, the second energy plan proposed increasing the
extraction rate with extraction by the Danish state in North Sea oil
and gas, increasing energy efficiency standards in new building projects,
and securing resources for R&D. The plan continued with increasing
district heating and promoted the expansion of Combined Heat and
Power (CHP) plants, including decentralized CHP. Later, in 1985, the
Danish parliament introduced adjustments to the initial heat planning
act: domestic resources would have priority in heat planning. Natural
gas, surplus heat from electricity plants, and biomass (straw, waste, and
wood) would be prioritized over coal. Furthermore, a still present feature
of Danish energy policy was introduced at that time: all new power
plants must include the possibility of cogenerating heat and power. Only
by exception, the government would authorize building condensation
(i.e., electricity-only) thermal units (Mortensen and Overgaard 1992).
The Danish government also prohibited electric heating in 1988 in areas
served by district heating and natural gas networks, effectively granting
monopoly power to district heating suppliers.
Cogeneration has been a key factor in the achievement of energy efficiency in Denmark and the country is, by far, a European leader in this
respect (Sovacool 2013). At the end of 2016, 69% of all thermal electricity production was produced together with heating, and 65% of all
heating production was simultaneous with thermal electricity production.
Similarly, energy efficiency measures in buildings (insulation, new heating
installations) have increased the heated area in Danish dwellings with a
simultaneous decrease of final energy consumption per square meter. Final
energy consumption for heating purposes (space and water heating) has
also remained relatively stable.