Energy policymaking in Denmark: Implications for global energy security and sustainability

Abstract

Denmark is arguably the most energy secure and sustainable country in the Organization of Economic Cooperation and Development (OECD). The country has reduced its dependence on foreign sources of energy to zero and become self-sufficient in its own energy production and use, offering important lessons for other nations around the world. This study explores the core of Denmark's successful approach: a commitment to energy efficiency, prolonged taxes on energy fuels, electricity, and carbon dioxide, and incentives for combined heat and power (CHP) and wind turbines. Through these commitments, the study shows how Denmark transitioned from being almost 100 percent dependent on imported fuels such as oil and coal for their power plants in 1970 to becoming a net exporter of fuels and electricity today. The country leads the world in terms of exportation of wind energy technology, with a hold on roughly one-third of the world market for wind turbines. It was able to phase out the use of virtually all oil-fired power plants in less than five years and implemented a progressive moratorium on future coal-fired power plants in the 1990s. Their most recent strategy seeks to achieve 30 percent of total energy supply from renewable energy by 2025.