Denmark is a leading country in renewable energy production and usage. Renewable energy sources collectively produced 81% of Denmark's electricity generation in 2022, and are expected to provide 100% of national electric power production from 2030. Including energy use in the heating/cooling and transport sectors, Denmark is expected to reach 100% renewable energy in 2050, up from the 34% recorded in 2021. In the heating sector the country has long used and continues to develop district heating (DH) networks. Hot water or steam is produced centrally and then distributed through a network of insulated pipes to high population areas. Houses within a district heating area have heat exchangers installed instead of boilers for their heating and hot water requirements. The heat exchanger keeps the two water systems separate and means that heat can be adjusted as with a familiar domestic boiler. One simple but important innovation in the district heating network was the development of internally insulated pipes. The two pipes taking and receiving the return of water are placed inside a much larger pipe and insulating material is set so as to fill the figure eight shaped void between the two smaller and the large pipe. In 2013 district heating supplied over 60% of all households in Denmark with heating and hot water. The development of district heating technology has led Denmark to become a world leader in industrial pump and thermostat designs and its products are used in many industries worldwide. Cogeneration is also widely used. This is a process that extracts the waste heat produced when generating electricity. Power stations designed to do this are known as Combined Heat and Power (CHP) stations. CHP stations in Denmark are often sized to provide the heat required for the local district heating system. Thus CHP stations produce both electricity for the grid and heat for district heating systems. Heat can be stored in large industrial hot water tanks for several days allowing electricity and heat supply to be provided time independently from each other. By 2013 the use of CHP stations had reduced the overall energy consumption in Denmark by 11%. Danish electricity generation has become increasingly decentralised with a move away from production in the large central power stations to many smaller locally based and mostly CHP stations. Many of these smaller stations use locally sourced bio energy sources including straw and wood pellets.
Energy consumption and objectives
*Provisional data for 2021, 2022, some data for earlier years may also be provisional. Renewable-energy consumption increased more than elevenfold from 22 petajoules (6.1 TWh) in 1980 to 257 PJ (71 TWh) in 2018. Whilst renewable-energy consumption was rising between 1990 and 2013, gross energy consumption fell by 7%. Most of the fall can be attributed to a great increase in combined power and heat generation (CHP) and the growth in wind power. This has increased energy conversion efficiency, reducing conversion losses by 28% or 7% relative to gross energy consumption. Put simply smaller and decentralised CHP plants use fuels far more efficiently than older centralised power plants, and wind power has no fossil fuel to waste. Thus the growth of these two sources (10% during the period) has displaced fossil fuels by more than a one-to-one ratio. The use of Biofuels in local CHP plants has further displaced fossil fuel consumption. The figures in the table above show that whilst the reduction in fossil fuel use has been most pronounced in coal use, there has also been a significant reduction in oil and natural gas usage since 2000. Oil has fared better than the other fuels because it still dominates usage in the transport sector and alternative fuels and transport solutions are not yet widely deployed. On 22 March 2012, the then–government of Denmark announced the Energy Agreement, which had the following goals:
Eliminating coal from power production by 2030; having completely fossil-fuel-free electricity and heating production by 2035; Providing 100% of Denmark's energy requirements from renewable sources by 2050. In 2018, an energy agreement was signed by the then–government of Denmark with support from all the parties in the Danish parliament at the time. This agreement had the goal of providing 50% of Denmark's energy from renewable energy in 2030, fully covering the Danish people's electricity consumption. In 2020, the (as of May 2020) current government of Denmark revealed a plan to build two energy islands, one on Bornholm and one on "an artificial island in the North Sea". When built both would have a capacity of at least 2 gigawatts; the North Sea island could eventually have a capacity of 10 gigawatt.
Energy consumption by sector
All EU countries as well as Iceland and Norway submitted National Renewable Energy Action Plans (NREAPs) to outline the steps taken, and projected progress by each country between 2010 and 2020 to meet the Renewable Energy Directive. Each plan contains a detailed breakdown of each country's current renewable energy usage and plans for future developments. According to projections by the Danish submission in 2020 the gross final energy consumption in Denmark by sector breaks down as follows:
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