[Legislative] [Danish Policy] Energy 2000, Target to reduce CO2 emissions in 2005 by 20% compared to 1988 levels. Energy 21, Reinforce targets of Energy 2000 by introducing new measures to achieve goals. -Renewable energy share to be 12-14% of energy supply in Ban on construction of new coal fired power stations. Current Danish Energy Policy is being considered which may result in this law being stopped. Wind Orders, Land Based Wind Order -Offshore Wind Order, 750MW by 2008 Combined expansion of both to be 1500MW in Target was almost reached by Onshore at the end of 1998, at present onshore capacity is 2,600MW. Electricity Reform, Consumers obligated to ensure 20% of supply is from renewables, this to form the basis for a Green Market. -Green Certificates are awarded to generation companies per MWh produced, then are sold on the Green Market. -Market deemed impractical at present in 2001, implementation postponed indefinitely. May be realised if EU opts for harmonised scheme for supporting renewables in the future. Climate 2012, Supplementary firing of straw and wood chips, Aim to burn 150,000 tons of straw by end of Political agreement on a concrete basis for fixing the settlement prices to enable offshore wind to be as economically feasible as onshore. -Creates foundation for political decisions on climate change issues in coming years. -Predicts deficit of 4.4% for emissions targets.

[Economic] [Danish policy] Combined Energy and CO2 Tax, Renewables given exempt status. -Revenue used for subsidies for environmentally friendly forms of generation. Green Tax Package, Aim to increase energy efficiency in Trade and Industry sector. -Subsidies for energy saving. Energy Tax Rates Increased, Prediction of future levels not satisfactory to fulfil goals, introduced as a result of a study into projected emissions and share of renewables. Environmental Bonus -Environmental premium per kWh in addition to the market electricity price. Is specific to technology. - Onshore wind is 0.43 DKK/kWh for the first 12,000 full load hours, Offshore wind is DKK/kWh for the first 25,000 full load hours. This gives investment in new Offshore wind a larger incentive.

[Research and Development] [Danish Policy] Development Programme for Renewable Energy (DPRE) -Encourages development of technologies: Biomass, Wind and Solar Energy. -Annual Budget- DDK Million; 15% goes to subsidies for development of technology and demonstration projects, Rest goes towards subsidising installation of systems. Energy research Programme (ERP) -Supports Renewable Energy sources and Electricity Savings. -Annual framework for subsidies – DKK 100 million. -Involved with - Subsidised development of Wind, Research, promoting biomass for energy purposes. Renewable Energy Island Project, Subsidised project to demonstrate the economic/technical/organisational conversion of an entire community to 100% renewable energy supply over a ten year period , Island of Samsoe is selected. -Wind, both on and offshore, is the main source of power, but biomass fuelled district heating systems, and home based renewable systems are also very important.

[Environmental Drivers] [Danish Policy] Kyoto Agreement, International Climate Change Program, Denmark to reduce greenhouse gas emissions by 21% in compared to 1990 levels. Potential: - Small potential for hydroelectric schemes also contributed to growth of other renewables, especially wind which has been used in Denmark since the beginning of the century. Old reliance on coal and oil - The oil crisis of the 1970’s caused Denmark to explore its territories in the North Sea for oil, Denmark is now over 100% self sufficient in oil and gas. This resulted in oil powered generation, and then coal fired as a result of fiscal incentives. This meant huge greenhouse gas emissions per capita and growing environmental concerns caused a policy move towards very ambitious efforts to reduce emissions.