Energy Policies of IEA Countries: Denmark 2002

International Energy Agency

The International Energy Agency's 2002 review of Denmark's energy policies and programmes. It finds that over the past four years, Danish energy policy has made good progress towards meeting its high standards of environmental protection while opening its gas and power industries to competition. The concurrent pursuit of economic efficiency, energy policy and environmental protection is an issue of prime importance in Denmark. The country has adopted both international and national greenhouse-gas emissions targets. A host of measures is in place to reach these targets, and to promote energy efficiency and renewable energy sources. The targets are within reach. But actually attaining them requires the continued application of a system of power plant carbon dioxide quotas.

The Danish power market has been opened to competition beyond the requirements of the EU directive, but the scope for effective competition continues to be limited by priority dispatch for wind energy and combined heat and power plants. The gas market has been opened, but much less fully. The gas industry’s debt problem was addressed through industry restructuring, but this has led to a dominant position for the state-owned gas pipeline company DONG. The report recommends that foreign suppliers be encouraged to enter the market, in order to stimulate competition in electricity and gas markets. This report discusses the energy policies of Denmark based on a review visit in October 2001, before the recent general elections.

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