344 L. BOSCÁN ET AL.
public opinion away from nuclear energy, initially preferred by Danish
policymakers. The democratically sound political system of the country
responded by embracing the communal choice, renewable energy. Within
renewable energy, the preferred technology was wind power.
The small Nordic nation has been the home to many “firsts”: first
offshore wind farm in the world, highest share of wind power production
in the electricity system, and first in wind turbine development. Centrally
planned district heating and the ensuing energy efficiency provided by
this approach, and a cooperative framework within the country but also
toward its neighbors, contribute further to Danish wind power’s success.
Looking toward the future, several important challenges remain.
The emissions-heavy transportation sector requires greater strategy. The
district heating sector faces the simultaneous challenge of electrification
and modernization, which may prove overly ambitious. The decarbonization of the electricity sector has come at a significant price for
end-users, who pay one of the highest electricity prices in Europe, which
works against the strategy of decarbonization by means of electrification.
Finally, Denmark faces increasing flexibility requirements, given its further
commitment to offshore wind power development.
Notes
1. We follow the IEA’s convention of including battery electric vehicles
(BEVs) plug-in hybrid vehicles (PHEVs) and fuel cell electric vehicles
(FCEV) under the broader category of electric vehicles (EVs) (International
Energy Agency 2018a, b).
2. After an initial agreement focusing on district heating areas with heat
delivery lower than 200 TJ (~350 areas covering 240 thousand households), the measure has been extended and will now apply to areas that
deliver less than 500 TJ, more than one-half of all district heating areas in
the country. The measure came into force on January 1, 2019.
3. As of 2020, there is a new regulatory framework proposal which includes
the application of benchmarking, standardized costs, cost caps, merger
incentives, and rate of return guidelines, which resembles the regulation
implemented in electricity and gas networks. However, the current Danish
government (led by Mette Frederiksen) has not yet agreed to implement
this, partly due to resistance from suppliers but also due to doubts cast on
the market orientation of such policies, which contrast with the centralized
planning approach that has characterized the sector so far.
public opinion away from nuclear energy, initially preferred by Danish
policymakers. The democratically sound political system of the country
responded by embracing the communal choice, renewable energy. Within
renewable energy, the preferred technology was wind power.
The small Nordic nation has been the home to many “firsts”: first
offshore wind farm in the world, highest share of wind power production
in the electricity system, and first in wind turbine development. Centrally
planned district heating and the ensuing energy efficiency provided by
this approach, and a cooperative framework within the country but also
toward its neighbors, contribute further to Danish wind power’s success.
Looking toward the future, several important challenges remain.
The emissions-heavy transportation sector requires greater strategy. The
district heating sector faces the simultaneous challenge of electrification
and modernization, which may prove overly ambitious. The decarbonization of the electricity sector has come at a significant price for
end-users, who pay one of the highest electricity prices in Europe, which
works against the strategy of decarbonization by means of electrification.
Finally, Denmark faces increasing flexibility requirements, given its further
commitment to offshore wind power development.
Notes
1. We follow the IEA’s convention of including battery electric vehicles
(BEVs) plug-in hybrid vehicles (PHEVs) and fuel cell electric vehicles
(FCEV) under the broader category of electric vehicles (EVs) (International
Energy Agency 2018a, b).
2. After an initial agreement focusing on district heating areas with heat
delivery lower than 200 TJ (~350 areas covering 240 thousand households), the measure has been extended and will now apply to areas that
deliver less than 500 TJ, more than one-half of all district heating areas in
the country. The measure came into force on January 1, 2019.
3. As of 2020, there is a new regulatory framework proposal which includes
the application of benchmarking, standardized costs, cost caps, merger
incentives, and rate of return guidelines, which resembles the regulation
implemented in electricity and gas networks. However, the current Danish
government (led by Mette Frederiksen) has not yet agreed to implement
this, partly due to resistance from suppliers but also due to doubts cast on
the market orientation of such policies, which contrast with the centralized
planning approach that has characterized the sector so far.