Lilleholt, L.C. (2016). Denmark’s Energy Revolution: Past, Present, and Future. Solutions 7(3): 42–45. https://thesolutionsjournal.com/article/denmarks-energy-revolution-past-present-and-future/
Perspectives Denmark’s Energy Revolution: Past, Present, and Future by Lars Christian Lilleholt
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enmark’s energy revolution began with the shock of the 1970s oil crises, where prices quadrupled in a few days, and the country got the wake-up call it needed to start turning around its energy system. After four decades of progressive reforms—aimed first at securing supply and later at decarbonizing the economy—Denmark has become an example of how to transition to a low-carbon economy by combining market-based and regulatory approaches. Danes now enjoy a strong, secure energy supply and economic growth increasingly decoupled from energy consumption, and the country has set the goal of becoming independent of fossil fuels by 2050. To understand this transformation, we need to go back to the first oil crisis in 1973, when world oil prices spiked dramatically, and 90 percent of Danes’ energy supply was imported. In response to the crisis, Denmark’s policymakers turned to the rich oil and gas reserves of the North Sea in a bid for energy independence over the course of the 1980s (before climate science was fully understood). At the same time, a diversification process was started; oil was gradually in the first phase replaced with coal and natural gas and in the second phase added with and replaced by bioenergy and wind. District heating systems based on combined heat and power production were also expanded into homes and businesses. The oil crisis produced a strong social mandate for change, and forged a series of political national energy agreements using a holistic, integrative planning approach —something Denmark, to a degree, has pioneered.
Four decades of progress rests on parliament continuing to build crossparliamentary support. This political license, in turn, liberates policymakers to focus on the long-term. Denmark’s current energy 2012–2020 agreement continues the transformative process: redoubling the country’s deployment of renewable energy as fossil fuels are phased out.1 Today, around 40 percent of Denmark’s electricity supply is sourced from wind; which is a remarkable achievement given wind’s fitful nature. Greening the energy supply is one part of the strategy. The other is increased energy efficiency. By 2013, the country consumed about a third less energy per unit of GDP compared to 1990. Danes enjoy a high standard of living with a comparatively small carbon footprint. Denmark’s goal is to become independent of fossil fuels by 2050— a steep challenge. The government is pursuing a policy of “green realism” —focusing on cutting clean energy costs and raising competitiveness via market-based instruments. But, Denmark cannot do the job alone; a conducive international policy environment is needed, which is why Denmark actively seeks strong global climate action. Denmark actively worked to secure the ambitious global climate agreement at the UN climate conference in Paris in December 2015 (COP21). At the same time, Denmark cannot rely solely on the UN system to mitigate climate change. Denmark is already engaged in close bilateral cooperation with a number of emerging economies to promote the development of clean, efficient energy systems. In 2014,
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Wind turbines in east Copenhagen.