Climate front-runner
OIL CRISIS
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In the mid-seventies, Danes had to adjust to car-free Sundays and cold radiators. The energy crises spurred societal changes that have put Denmark at the fore of today’s climate challenge.
By Hans Mogensen
In the past 25 years, Denmark’s economy has grown by 75 per cent, while energy consumption has remained largely constant.
A targeted strategy, an unrelenting, active political effort and a unique innovation culture have created this Danish success story. It is called the Danish example.
Oil boycott
October 1973. The energy crisis came as a shock – precipitated by the war between Israel and Egypt/Syria and the Arab oil boycott of the USA and Western Europe.
The oil price skyrocketed, generating major uncertainty about the future energy supply.
At the time, oil accounted for 90 per cent of Denmark’s energy requirement, and motorists had to learn to do without their cars on Sundays, while shop owners were asked to turn off lights outside opening hours. It was just the beginning.
In 1979, a new oil crisis followed the Islamic Revolution in Iran and the fall of the Shah.
The first Ministry of Energy
The shock of two oil crises galvanised the Danish society into innovation and change. Mr and Mrs Denmark turned down the heat and insulated their houses. Popular movements worked to meet the global challenges engendered by the energy crises and thus advanced development.
Companies began taking an interest in energy savings and energy efficiency, and the government made energy policy a priority.
In 1976, the first complete energy plan came into being. It focussed on decreasing energy consumption and dependence on oil.
In 1979, the Danish Parliament passed acts on the supply of heat and natural gas, Denmark created its first Ministry of Energy, and in the following years, acts were passed on renewable energy subsidies and energy savings in buildings.
Green taxes
In the 1980s, district heating and co-production of electricity and heat were dramatically expanded, and in the 1990s, the Danish Ministry of Environment and Energy grew very strong.
New energy plans set continually higher targets for reducing energy consumption and CO2 emissions. These objectives were met with the help of stricter legislation, green taxes, incentives and energy saving campaigns.
Since the turn of the millennium, energy policy requirements have once again changed. Considerable oil price increases and a new, strong climate awareness in Denmark and globally have brought new energy agreements with even higher targets.
Efficient energy use
Combining heat and power
Among the many initiatives to boost energy efficiency, co-production of electricity and heat has played a vital role in Denmarks energy ambitions.
Combined heat and power production ensures far more efficient use of fuels for production.
The most efficient combined heat and power plants have an efficiency exceeding 90 per cent.
Demanding government policies have helped develop the collective heat supply and the world’s most efficient power stations. Today, more than 80 per cent of Danish district heating is co-produced with electricity and approx. 50 per cent of electricity is co-produced with heat.
Energy standards
Denmark has launched a series of consumer and company-targeted measures to increase efficiency in energy consumption. High energy standards have been established for buildings, energy labelling schemes for electrical appliances, public campaigns for household energy saving, energy-saving agreements with
the industrial sector, and taxes have been imposed on energy consumption.
Danish environmental and energy taxes help to bring the price of energy consumption in line with the environmental costs of production.
Legislation, taxes and incentives
The interplay of innovative companies and increasingly demanding energy legislation has prevented Denmark’s energy consumption from increasing alongside economic growth.
Denmark is among the countries where green taxes constitute the greatest share of gross domestic product.
This has given Denmark immense experience in designing green taxes and incentives that promote renewable energy.
Research and development
Denmark has gained its strong position in the energy field through research and development and by demonstrating technologies and systems.
Denmark has a well-developed tradition for broad collaboration on research and development in the energy area, and has good experience and examples of efficient collaboration projects and networks between companies and research and knowledge institutions.
The government supports research through a series of research and innovation programmes and through basic research at research institutions.
Wind turbines for the world
The constant political and corporate focus on energy efficiency and new technologies has made Denmark a leading exporter of energy technology solutions.
The export of clean technology has overtaken many other Danish exports. Today, Denmark accounts for approximately one third of the global wind turbine market.
This page forms part of the publication 'FOCUS DENMARK' as chapter 8 of 17
Version 1.0. 22-06-2009
Publication may be found at the address http://www.netpublikationer.dk/um/9352/index.htm
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