328 L. BOSCÁN ET AL.
investors. Following the political decision to build an offshore wind farm,
in consultation with municipalities regarding siting, a technical dialogue
begins with developers. Second, pre-qualification is granted. Third, an
environmental assessment is performed. Fourth, the tendering process
takes place and winning bids, in which producers obtain a Contract-forDifference over the lifetime of the project, are determined competitively.
Fifth, the Danish Energy Agency acts as coordinator with remaining state
institutions. Finally, the production stage begins (State of Green 2017).
With the advent of a new Danish energy plan put forward in 2007 and
a new energy policy agreement, the support scheme for wind producers
changed again. According to the new framework (a capped feed-in
premium), wind producers’ revenue would be the sum of market prices
plus a premium. This arrangement exposed wind producers to electricity
market conditions but, at the same time, renewed confidence in investors.
The 2007 agreement was followed by the 2012 energy policy agreement, with the official long-term energy policy goal of attaining 100%
renewables by 2050 across the entire energy supply (electricity, heating,
industry, and transport). By the end of 2020, at least half of all electricity demand will be covered by wind power, a goal that is within reach.
By 2030, coal shall be phased out, and electricity and heating shall be
entirely renewable-based by 2035 (Danish Ministry of Energy Utilities
and Climate 2012; Hvelplund et al. 2017). Several energy companies in
Denmark have announced voluntary decisions to phase out coal usage.
Recent decisions reinforce the earlier agreements. Following an open
consultation, in June 2018 the political parties in the Danish Parliament
reached a new energy policy agreement aimed at 2020–2030. The agreed
policy and financing framework pave the way to achieving 55% renewables
in total final consumption by 2030, and more than 100% of renewables
as a share of energy consumption. Furthermore, at least 90% of non-fossil
fuels shall be used in district heating (Danish Ministry of Energy Utilities
and Climate 2018a).
What Are the Next Challenges
for Denmark’s Green Transition?
Despite Denmark’s significant progress, the ambitious 2030 and 2050
goals set by policymakers mean that policies must adapt further to deepen
and consolidate the transition to a low-emission society and a renewablebased energy economy. We identify four key challenges facing Denmark
with regard to the next stages in its energy transition.
investors. Following the political decision to build an offshore wind farm,
in consultation with municipalities regarding siting, a technical dialogue
begins with developers. Second, pre-qualification is granted. Third, an
environmental assessment is performed. Fourth, the tendering process
takes place and winning bids, in which producers obtain a Contract-forDifference over the lifetime of the project, are determined competitively.
Fifth, the Danish Energy Agency acts as coordinator with remaining state
institutions. Finally, the production stage begins (State of Green 2017).
With the advent of a new Danish energy plan put forward in 2007 and
a new energy policy agreement, the support scheme for wind producers
changed again. According to the new framework (a capped feed-in
premium), wind producers’ revenue would be the sum of market prices
plus a premium. This arrangement exposed wind producers to electricity
market conditions but, at the same time, renewed confidence in investors.
The 2007 agreement was followed by the 2012 energy policy agreement, with the official long-term energy policy goal of attaining 100%
renewables by 2050 across the entire energy supply (electricity, heating,
industry, and transport). By the end of 2020, at least half of all electricity demand will be covered by wind power, a goal that is within reach.
By 2030, coal shall be phased out, and electricity and heating shall be
entirely renewable-based by 2035 (Danish Ministry of Energy Utilities
and Climate 2012; Hvelplund et al. 2017). Several energy companies in
Denmark have announced voluntary decisions to phase out coal usage.
Recent decisions reinforce the earlier agreements. Following an open
consultation, in June 2018 the political parties in the Danish Parliament
reached a new energy policy agreement aimed at 2020–2030. The agreed
policy and financing framework pave the way to achieving 55% renewables
in total final consumption by 2030, and more than 100% of renewables
as a share of energy consumption. Furthermore, at least 90% of non-fossil
fuels shall be used in district heating (Danish Ministry of Energy Utilities
and Climate 2018a).
What Are the Next Challenges
for Denmark’s Green Transition?
Despite Denmark’s significant progress, the ambitious 2030 and 2050
goals set by policymakers mean that policies must adapt further to deepen
and consolidate the transition to a low-emission society and a renewablebased energy economy. We identify four key challenges facing Denmark
with regard to the next stages in its energy transition.