The Danish Energy Commission has just delivered its report on the future energy policy of the country ("Energikommissionens anbefalinger til fremtidens energipolitik", April 2017).
The report comes with a series of recommendations which should enable the country to reach the long-term goal of becoming a low-emissions society based on renewable energy by 2050, with an intermediary 50% goal in 2030. The Commission received the mandate of looking at the measures necessary to be implemented in the period 2020-2030. It argues notably in favour of the following main points below. The summary is followed by a rapid assessment.
A paradigm shift
Denmark needs a paradigm shift in energy policy, where focus is on an international perspective, increased electrification and on developing efficient market-based solutions. In general, the Commission is of the opinion that 2050 perspective should be better reflected in Danish energy and climate policy.
Cost-effective policies
In order to reach the set goals (2030 and 2050), the Danish energy policy should include a "cost-effective combination of energy-efficiency improvements, renewable energy deployment and electrification of energy system."
The cost of renewable energy policies
Interestingly, the Commission notes that Denmark can manage the costs of reaching the set goals for renewable energy increase, but this is made conditional to the ability for Denmark to continuously reduce the need for subsidies for renewable energy deployment, and in the long term making the development market-driven. Such recommendation is totally in lign with what is proposed by the European Commission at EU level.
Regional Cooperation
Regional cooperation is decisive in achieving the set goals and ensuring security of supply. Danish supply policy should be based on extended regional cooperation.
Market-based approach and price signals
The Commission argues strongly in favour of the "marketisation of measures", i.e. market-based solutions as guarantee for cost-efficiency. The electricity markets must be further developed in order to ensure competition on flexible markets. The EU Emissions Trading Scheme must also be strengthened and work as Central climate policy instrument.
Assessment of the assessment
Looking at the proposals made by the Commission from the standpoint of another Nordic country (Norway), those measures are mostly pointing in the direction of a strengthening of current policies and trends. The paradigm shift seems already to be supported by a large consensus, but the rythm and scope of the measures needs certainly to be widened. Again, Nordic countries could serve as laboratory for testing new market solutions, based on regional cooperation approach. Finally, the proposals made are very much in line with the proposals from the European Commission in its Winter Package from November 2016.
References:
- The full report is available here: http://efkm.dk/media/8276/energikommissionens-anbefalinger_enkeltside.pdf
- Website of the Energy Commission: http://www.efkm.dk/temaer/energikommissionen/
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