Danish Energy Agreement for 2008-2011

Last updated: 5 November 2017
The Danish goverment (the Conservatives and Liberals) 21 February 2008 entered into a comprehensive energy agreement with the Social Democrats, Danish Peoples Party, Socialist Peoples Party, Social Liberals and New Alliance on energy policy.
The framework agreement aims to lower Denmarks dependence on fossil fuels (coal, oil and gas) through achieving energy savings and renewable energy targets. These are to be reached via linear phasing, with concrete measures set for meeting the targets. By 2011, 20% of gross energy consumption must come from renewable energy sources.
The agreement includes better terms for wind turbines and other sustainable energy sources such as biomass and bio gas.
Aside from significantly raising the transfer rate for electricity from land wind turbines, biomass and bio gas, the parties agree to install 400 MW from new offshore wind turbines by 2012. Plans to invest in two new 75 MW land-based facilities in 2010 and 2011 have also been announced.
The deal also provides incentives and a compensation scheme for local residents to allow land-based wind farms to be located in their area, including a new stakeholder model.
In addition, 25 million DKK per year for the next five years has been earmarked for wave and solar power research.
The effort to save energy is being considerably ramped up: The new agreement commits Denmark to cut its energy consumption by 2% by 2012, compared with 2006 levels. This is half a percentage point more than Denmarks current target, meaning that in 2020, energy use must have fallen by 4% compared to 2006.
Hydrogen vehicles are to be tax-free and the same applies to electric vehicles provisionally until 2012, and a pool of 35 million DKK is being set aside for electric vehicle research. The government and Danish Peoples Party would like a significant increase in research, development and demonstration efforts in energy technology to the amount of 750 million DKK in 2009 and 1 billion DKK from 2010, and this will be taken up in connection with the implementation of globalisation funding.
In the case of significant deviations for the linear phasing of renewable energy and energy savings targets, the parties (Danish government and parliament) shall discuss supplementary initiatives for attaining the targets.
The parties behind the agreement will receive a status report on development toward the goals and implement analyses up until 2011. By the end of 2010 it will be determined whether there is a need for implementing further initiatives.

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