Denmark

Denmark met its Article 7 obligations until 2020 exclusively through the use of energy efficiency obligations. The obligations are part of the energy policy agreement of March 2012 and are laid down up to 2020 through the agreement of 16 December 2016 between the Minister for Climate, Energy, and Building and the grid and distribution companies.

From 2021 to 2030 Denmark will fulfill the saving obligations under Article 7(1) in the EED by the following alternative policy measures (article 7 b).

• A competitive subsidy scheme related to private enterprises: 300 mio. DKK per year in 2021-2024
• A competitive subsidy scheme related to buildings: 200 mio. DKK per year in 2021- 2024
• Efficiency of existing buildings by other measures (requirements for the renovation of buildings in the building codes, information campaigns regarding technological opportunities and financial measures available to building owners)
• Subsidy scheme to replace oil burners with heat pumps in buildings outside the district heating and gas grids: DKK 20 million per year in 2021-2024

The following description refers to both new competitive subsidy schemes related to private enterprises and buildings:

The M&V is carried out by the Danish Energy Agency (DEA). The aid will be granted to the recipients based on the calculated energy savings so that aid is granted based on the amount of generated kWh over the lifetime of the energy saving. Savings are calculated by using standard values for the lifetimes of the eligible actions. These standard values are set by the DEA. The DEA will assess each application and will grant the aid. The aid is paid out after the completion of the energy savings project, and after the applicant has provided sufficient documentation hereof. The DEA will review this documentation for each project.

Denmark addresses energy poverty through general social policy, which is not specifically targeted towards energy. In the Danish energy policy therefore no specific national objectives and plans exist for the reduction of energy poverty. However, Danish social policy guarantees all citizens fundamental rights in case they encounter social problems such as unemployment, sickness, or dependency. Although no specific subsidies are targeted towards energy poverty, some of the general social policy measures provide financial support to energy-related purposes and the income transfer system is structured around costs of living, which include energy costs. These social policy measures include for example a heating supplement for the weakest part of the pensioners, a special supplementary housing benefit for persons receiving social assistance and who meet special conditions, and additional cash support for persons, who have experienced changes in conditions (e.g. unemployment or sickness) (cf. NEEAP, 2019, p. 120/121)