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Energy Policies of Iea Countries

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Energy Policies of Iea Countries ENERGY POLICIES OF IEA COUNTRIES Denmark 2017 Review Secure Sustainable Together ENERGY POLICIES OF IEA COUNTRIES Denmark 2017 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 29 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Estonia Finland France Germany Secure Greece Sustainable Hungary Together Ireland Italy Japan Korea Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2017 Spain International Energy Agency Sweden Website: www.iea.org Switzerland Turkey United Kingdom Please note that this publication United States is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are also participates in available online at www.iea.org/t&c/ the work of the IEA. Foreword The International Energy Agency (IEA) has been conducting in-depth country reviews since 1976. A core activity, the process of review by peers, not only supports member countries’ energy policy development and mutual learning, but it also encourages the exchange of international best practice and experience. In short, by seeing what has worked – or not – in the “real world,” these reviews help to identify policies that achieve objectives and bring results. FOREWORD In 2016, the IEA decided to modernise the reviews by shifting their focus to key energy security challenges in fast-changing global energy markets, and to the transition to a clean energy system. This report on Denmark offers insights into two special focus areas, which were chosen by the Danish government: integrating variable renewable energy into the electricity system and making the heating sector more sustainable. These two areas are critical for advancing decarbonisation in Denmark and, because they are intertwined, they also offer an attractive potential for energy system integration. Wind power today provides more than 40% of the electricity generated in Denmark. This is the highest share in the world, and tapping into the large offshore resource will help the country raise this portion even higher. In regard to heating, Denmark is already switching from coal to biomass in district heating and favouring renewables over oil and natural gas in individual heating. These trends will have to continue for the country to meet its goals to increase the share of renewables and, by 2050, to discontinue its reliance on fossil fuels altogether. Smart policies and measures are essential to accomplishing this at least cost. The primary aim of this report is to support Denmark in its quest for a secure, affordable and environmentally sustainable transformation of its energy sector and economy. It is my hope that this country review will guide Denmark in its energy transition and support its contribution to a cleaner, more sustainable and secure global energy system. Dr. Fatih Birol Executive Director International Energy Agency 2017 OECD/IEA, © 3 2017 OECD/IEA, © Foreword ............................................................................................................................3 Executive summary and key recommendations ..........................................................13 Overview ............................................................................................................................13 Low-carbon transition ........................................................................................................14 Energy security ..................................................................................................................16 Competition and energy sector regulation ........................................................................17 Variable renewable energy (VRE) integration ...................................................................18 Heating sector....................................................................................................................19 Key recommendations .......................................................................................................20 TABLE OF CONTENTS OF TABLE 1. General energy policy .................................................................................................21 Country overview ...............................................................................................................21 Supply and demand ...........................................................................................................23 Institutions ..........................................................................................................................28 Key policies ........................................................................................................................29 Low-carbon transition ........................................................................................................34 Energy security ..................................................................................................................35 Taxation .............................................................................................................................36 Assessment .......................................................................................................................39 Recommendations .............................................................................................................42 References ........................................................................................................................42 ENERGY SECURITY 2. Oil ..................................................................................................................................43 Overview ............................................................................................................................43 Supply and demand ...........................................................................................................44 Infrastructure......................................................................................................................46 Retail sector .......................................................................................................................49 2017 Prices and taxes ................................................................................................................49 Emergency response policy ..............................................................................................50 OECD/IEA, © 5 TABLE OF CONTENTS Assessment .......................................................................................................................52 Recommendations .............................................................................................................53 References ........................................................................................................................53 3. Natural gas ...................................................................................................................55 Overview ............................................................................................................................55 Supply and demand ...........................................................................................................55 Legal and regulatory framework ........................................................................................57 Infrastructure......................................................................................................................59 Market structure .................................................................................................................61 Prices and tariffs ................................................................................................................63 Security of supply ..............................................................................................................64 Assessment .......................................................................................................................65
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