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Strengthening infrastructure could boost clean energy investment in Denmark – News

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Denmark’s energy and climate ambitions in areas such as offshore wind, biomethane and district heating will transform the country’s energy system and bring it to net-zero emissions by 2050, according to a new in-depth policy review by the IEA. The company is strengthening its image as a leader in clean energy.

In 2022, Denmark had the highest share of wind power in the IEA (54%), which together with bioenergy and photovoltaic (PV) accounted for around 80% of the electricity mix. In the same year, almost 40% of Denmark’s gas consumption came from biomethane.

Great progress has been made in the energy sector, but even greater efforts are needed to reach Denmark’s goal of reducing greenhouse gas (GHG) emissions by 70% by 2030. By the end of the 2010s, Denmark must achieve in seven years the same amount of emissions reductions it has achieved in the past three decades.

According to the IEA’s new energy policy review, additional measures are needed, particularly in the transport and buildings sectors. Completing green tax reform is critical, but it should be accompanied by a broader transport decarbonization strategy and a new vision for energy efficiency, with a focus on digitalisation, smart cities and buildings. This report provides a detailed assessment of Denmark’s energy transition in each sector.

Denmark continues to demonstrate great leadership and innovation in the clean energy economy. As the birthplace of the modern offshore wind industry, the country is now using its foundations to build the energy system of the future, providing opportunities for its people and businesses on both the domestic and global stages.” Stated. IEA Director General Fatih Birol. β€œAt a time of uncertainty in the energy market, the IEA is committed to working with Denmark to achieve its energy transition and security goals.”

The global energy crisis sparked by Russia’s invasion of Ukraine has focused on Denmark’s dependence on energy imports and the need to ensure security of supply, diversify energy, and accelerate the phase-out of fossil fuels. highlighted. In 2022, the government proposed bringing forward its climate neutrality target to 2045 and aiming for a 110% reduction in emissions by 2050. This growing ambition will require clean energy technologies as well as solutions that enable negative emissions.

Denmark already has ambitious renewable energy targets. Particularly in the heating sector, the aim is to completely replace fossil fuels with biomethane by 2030. It also plans to increase offshore wind capacity by almost eight times and quadruple onshore wind and solar power generation by the same year. Under her Power-to-X (PtX) strategy in 2021, Denmark is targeting up to 6 GW of hydrogen electrolysis capacity by 2030.

Denmark has been a leader in streamlining permits for offshore wind power, but there is no fast-track procedure for onshore wind power. The IEA report therefore urges governments to consider best practices for expedited approvals, including a one-stop-shop for onshore wind developers, with a focus on digitalization and auction designs to drive further cost savings. is recommended.

The report says Denmark is in a good position to decarbonize its economy thanks to regional integration. The North Sea region is a hub for shipping, aviation and industrial clusters, as well as future demand for low-emission hydrogen, electronic fuels and carbon capture, utilization and storage (CCUS). Within just three years, Denmark has created her CCUS framework conditions and regulations, completed the first tender and allocated its first CO2 storage license in addition to a regional hydrogen pipeline agreement. The PtX Taskforce is supporting the development of Denmark’s hydrogen and low-emission fuels strategy, with more than 30 PtX projects and activities underway.

The Danish government has an important role to play in mitigating supply chain risks and supporting bilateral agreements and rulemaking at European Union (EU) level. These include a carbon border adjustment mechanism, rules on hydrogen and negative emissions certification, and a framework for CO2 transport and storage. The IEA report also recommends that Denmark develop a green infrastructure master plan at regional level as it assumes the North Sea Energy Cooperation Chair in 2024. Such a plan would help reduce costs and reduce investment risk. This includes electricity grids, CO2 and hydrogen networks.

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