COMMISSION STAFF WORKING DOCUMENT Country Factsheet Denmark Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union
Date: 2015-11-18
Institutions: European Commission, Secretariat-General
Subjects: Denmark, competitiveness, economic and social cohesion, electrical energy, energy policy, gas, innovation, reduction of gas emissions, regional cooperation, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 18.11.2015  SWD(2015) 221 final   COMMISSION STAFF WORKING DOCUMENT Country Factsheet Denmark Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union  {COM(2015) 572} {SWD(2015) 208 à 209} {SWD(2015) 217 à 220} {SWD(2015) 222 à 243}  
 
 
Towards an Energy Union  
           Denmark 

Macroeconomic relevance of energy 

IMPORTANCE OF THE ENERGY SECTOR 

The value added of the energy sector amounted to slightly above 1.9% of GVA in Denmark in 2005, 
falling to close to 1.7% in 2012. As a result, the energy sector contribution to overall value added is 
now  lower  than  the  EU-average.  The  share  of  the  energy  sector  in  total  employment  is  also  lower 
than average, at slightly above 0.4%. It has increased somewhat since 2005, resulting in about 0.5% 
of total employment in 2012.  

Source : EUROSTAT – National Accounts 

According to EurObserv'ER, in 2013, the share 
of  direct  and 
indirect  renewable  energy 
related  employment  in  total  employment  of 
the  economy  in  Denmark  was  at  about  1.4%, 
above the EU average of 0.53%. 

Source:  European  Commission,  based  on  EurObserv'ER  and 
EUROSTAT 

TRADE BALANCE OF ENERGY PRODUCTS 

Denmark had until recently, as one of few countries in the EU, a positive trade balance for energy 
products. It amounted to 2% of GDP in 2006, mainly attributed to net export of oil and gas, but also 
electricity. By 2014, this surplus had turned into a slight deficit, reflecting mainly a structural decline 

0.00.40.81.21.62.02.420052012DKEU27Value added of energy sector% of grossvalue added (total economy)0.00.10.20.30.40.50.620052012DKEU27Employment in energy sector% of total employment 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Denmark 

in oil and gas production. Denmark is recording a current account surplus amounting to 6.3% of GDP 
in 2014, which has grown over the period despite falling energy export.  

Source: EUROSTAT 
Note: Current account balance for EU28 from European Commission (AMECO) 

1. Energy Security, solidarity and trust 

ENERGY MIX 

The energy mix of Denmark is broadly in line with the one of the EU-28, with the notable difference 
of a double share of renewables and no nuclear energy. Compared to 1995, the share of renewable 
energy  sharply  increased,  more  than  EU  average  (from  6%  to  24%  of  gross  inland  energy 
consumption, respectively), while the share of gases only slightly increased (by 3 percentage points). 
The main decrease concerns the use of solid fuels (by 18 percentage points). 

Gross inland energy consumption in 2013  

Source: European Commission, based on EUROSTAT  

IMPORT DEPENDENCY 

Energy  import  dependency  for  all  fuels  is  slightly  positive  in  Denmark,  and  negative  for  gas  and 
petroleum products, showing that Denmark is a net exporter of these fossil fuels1. In parallel, for fuels 
that  need  to  be  imported,  the  supplier  concentration  index  for  Denmark  is  low,  showing  well 
diversified fuel and country sources.  

1  

Top non-EU gas suppliers table is based on EUROSTAT data. The share of imports from non-EU countries is calculated 
as the ratio between  volumes of imports from that specific non-EU supplier and total imports  (from EU and non-EU 
countries). 

2 

-4-202468DKEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2006 -4-202468DKEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2014  
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Denmark 

Source: European Commission, based on EUROSTAT  

2. A fully-integrated internal energy market 

INTERCONNECTIONS 

The  interconnection  capacity  for  electricity  was  44%  in  2014  for 
Denmark.  The  Project  of  Common  Interest  (PCI)  implementation  until 
2020 will further increase this level.  
The most important PCIs for Denmark in the electricity sector are those 
interconnections  with  Germany  (3 
enhancing  Denmark's  electricity 
onshore  and  offshore  grid  projects)  and  the  Netherlands  (1  offshore 
project).  These  are 
long-term  projects  with  commissioning  dates 
foreseen for years 2018 - 2022. 
Following gradual depletion of gas fields, after 2020 Denmark will require 
access to new gas sources. The capacity expansion at the Danish/German 
border (PCI) came into operation in 2015. A new gas pipeline connecting 
Denmark  and  Poland  ('Baltic  Pipe')  together  with  the  tie-in  to  the 
Norwegian gas infrastructure in the North Sea is under consideration.  
Denmark  closely  cooperates  with  other  Member  States  in  its  vicinity  as 
well  as  with  Norway  to  improve  the  security  of  gas  supply  through 
improved cross-border transmission capacity. 

Source: European Commission 
based on ENTSO-E scenario 
outlook and adequacy forecast 
2014 
Note: Reference to 2030 target 
is based on October 2014 
European Council conclusions 
stating that "the Commission 
will also report regularly to the 
European Council with the 
objective of arriving at a 15% 
target by 2030" 

3 

Top non-EU gas suppliers in 2013 (% in total imports)DenmarkEuropean Union country[%]country[%]Norway26.8Russia39.0Norway29.5Algeria9.7Qatar6.7-50%12%-103%-14%-114%-23%52%53%82%87%57%65%200520132005201320052013All fuelsPetroleum andproductsNatural gasDKEU28Import dependency 2013 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Denmark 

ELECTRICITY AND GAS MARKETS 

Market concentration index for power generation (left) and gas 
(right).(Herfindahl index – 10000 means monopoly) 

Sources: EC, based on ESTAT, CEER and Platts Power Vision 

Sources:ESTAT and European Commission Calculations 

Concentration in gas and electricity markets is low. The wholesale electricity and gas prices are lower 
than EU average. However, Danish household customers pay one of the highest electricity prices in 
EU, mainly due to a very high level of energy taxes. The Danish authorities intended to phase out the 
existing special supply obligation products in the electricity sector by October 2015, but this has been 
postponed until April 2016. The Danish authorities are also analyzing the gas sector and considering 
whether to abolish the current system of supply obligation licenses. 

The switching rates for electricity and gas consumers are above the EU average, particularly for gas. 
The retail electricity and gas markets score highly with Danish customers in terms of trust in providers 
and overall satisfaction. In 2013, the Danish Energy Agency issued a new regulation securing the full 
roll-out  of  smart  meters  in  Denmark  by  2020.  More  than  50%  of  customers  already  have  smart 
meters.  

CONTRIBUTION OF ENERGY TO CONSUMER PRICE EVOLUTION 

The development of the overall consumer prices in Denmark has followed the EU-average closely 
over  the  period.  The  contribution  of  energy  prices  to  price  developments  appears  to  be  slightly 
less  than  for  the  EU-average.  Inflation  has  been  lower  in  Denmark  than  in  the  EU  Since  2013. 
Falling energy prices have contributed to a very limited extent to this development. 

Source:DG ECFIN based on Eurostat 

4 

-10123420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsDenmark : Price evolution & the contribution of energy prices-10123420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsEU28 : Price evolution & the contribution of energy prices 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Denmark 

VULNERABLE CONSUMERS 

Based  on  a  EUROSTAT  survey  on  income  and 
living  conditions,  three  proxy  indicators  are 
indicate 
used  to  assess  fuel  poverty.  They 
limited  issues  in  Denmark,  except  a  slightly 
higher  share  of  houses  with  leakages  than  the 
EU  average.  There  are  no  specific  provisions 
regarding  vulnerable  consumers  in  the  energy 
law;  instead  this  issue  is  dealt  with  in  social 
legislation. 

 Source: European Commission, based on on EUROSTAT SILC survey 

3. Energy Efficiency and moderation of energy demand 

ENERGY EFFICIENCY TARGET 2020  
(17.8 Mtoe primary energy and 14.8 Mtoe final energy) 

Denmark’s  2020  energy  efficiency  target  is 
17.8  Mtoe  expressed 
in  primary  energy 
consumption  (14.8  Mtoe  expressed  in  final 
energy  consumption).  Denmark  has 
to 
its  current,  ambitious  efforts 
continue 
regarding  energy  efficiency  to  keep 
its 
current  primary  energy  consumption  (17.8 
Mtoe in 2013) at this level for the next years 
to  meet  its  2020  target  (Denmark  goes  in 
some  areas  even  beyond  the  requirements 
of the Energy Efficiency Directive). 

 Source:  European  Commission,  based  on  EUROSTAT  and  on  national 
energy  efficiency  targets  as  declared  by  the  MS  under  the  Energy 

Efficiency Directive 

ENERGY INTENSITY 

Primary energy intensity in Denmark has decreased from 2005 onwards, and remains much below EU 
average.  A  slower  energy  intensity  reduction  is  recorded  in  the  industrial  sector  compared  to  the 
EU28 reduction, but again it remains much below EU average. 

Primary energy intensity of the economy  

Final energy intensity in industry 

Source: European Commission based on  EUROSTAT and European 

Commission/AMECO 

Source:  European  Commission  based  on 
European Commission/AMECO 

  EUROSTAT  and 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Denmark 

Specific energy consumption  by  households  is  slightly  below  EU  average  and  decreased at a  higher 
pace than the EU average between 2005 and 2013. The specific energy intensity of passengers cars 
remains above EU average, which reflects a less efficient usage of cars. The specific energy intensity 
for freight transport increased between 2005-2010 (by up to 16%), i.e. from the same unit of energy 
fewer tonnes of good are transported and/or on shorter distances. 

Final  energy  consumption  per  m2  in  residential 
sector, climate corrected 

Specific energy intensity for passenger cars and freight transport2  

Source: European Commission based on  Odyssee 

database 

Source:  PRIMES  model  background  data  and  estimations  based  on  EU 
Commission and EU MS inputs   

EU  legislation  sets  mandatory  CO2  emission  reduction  targets  for  new  cars  and  vans.  By  2021,  the 
fleet average to be achieved by all new cars is 95 grams of CO2 per kilometre. For new vans, the fleet 
average is set at 147 g/km by 2020. 

Source: European Environmental Agency. 2014 values are provisional. 2013 EU average refers to EU-27. 

Regarding transport performance, in EU-28 the inland freight modal shares are 71% by road, 17% by 
rail, 7% by inland waterways and 5% by pipelines. The respective inland passenger modal shares are 
82% by private car, 9% by buses and coaches, 7% by railways and 2% by tram and metro. 

Modal share Denmark 

Source: Eurostat and EU transport in figures 2015. Data refers to 2013. Modal shares based on tonne-kilometres for freight sector and 
passenger-kilometres for passenger sector, freight data based on activity within country territory. Estimates are made when data is missing. 

2  

Statistics  on  energy  demand  for  passengers  and  freight  transport  are  not  available  and  model  estimates  have  been 
used instead. These issues should be borne in mind when comparing energy intensity in freight or passenger transport 
between Member States, which should be regarded as merely indicative. 

6 

 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Denmark 

4. Decarbonisation of the economy 

NON-ETS GHG EMISSION REDUCTION TARGET 2020  
(-20% by 2020 as compared to 2005 in the non-ETS sector) 

Denmark  has  decreased  its  emissions  by 
15 % between 2005 and 2014. 
According to its 2015 projections, Denmark is 
expected to reach its 2020 target.  

Non-ETS Emissions 
(vs. 2005) 

Projections with 
existing measures 
2020 

Projections/proxy 

target 

-20% 

-20% 

Proxy 2014 

-15% 

-6% 

Source:  European  Commission    based  on  EEA.  Based  on  preliminary 
inventory data. 

ESD  (Effort  Sharing  Decision)  emissions  are  the  emissions  from  sectors  not 

covered by the EU ETS 

RENEWABLE ENERGY SHARE TARGET 2020 (30%) 

With a renewable energy share of 27.2% in 2013, 
Denmark  is  on  track  to  reach  its  30%  target  in 
2020. 

Source: European Commission based on  EUROSTAT 

GREENHOUSE GAS EMISSION  INDICATORS 

  Per capita road transport emissions in Denmark are among the highest in the EU. 
  Denmark carbon intensity of the economy is one of the lowest in the EU, and it is about 40% 

 

lower than the EU average.  
In  2014,  the  revenues  from  the  auctioning  of  ETS  allowances  amounted  to  EUR  48.1  million, 
entirely used or planned to be used for energy and climate related purposes. 

7 

 
 
 
 
 
 
 
      
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Denmark 

Largest Sectors of GHG 
Emissions in 2012 (*) 

Energy/power industry  

Transport 

Industry  

Agriculture (incl. forestry & 
fishery) 

Residential & Commercial 

Waste & others 

Denmark 

EU 
Average 

33% 

24% 

12% 

23% 

6% 

2% 

33% 

20% 

19% 

12% 

13% 

3% 

(*)Sectoral breakdown for 2013 data not available 

GHG Emissions 

Denmark 

EU 

EU ETS auctioning 
revenues in 2014 (EUR 
millions) 

Share of ETS emissions in 
2013 

GHG emissions/capita in 
2013 (tCO2equivalent) 

Carbon intensity of the 
economy in 2013 
(tCO2equivalent/(EUR 
millions) 

48.1 

3205 

39% 

42% 

9.8 

8.5 

228 

328 

Source: European Commission  based on EEA 

ENERGY & TRANSPORT TAXATION 

Energy and transport related taxes as a share of GDP amount to 3.9%, which is significantly higher 
than the EU-average. This is mainly due to high taxation of transport vehicles (1.4%). Moreover, the 
taxation of electricity and heating fuels is also very high in relative terms, while the share of taxation 
of transport fuels to GDP is below the EU-average. The overall tax burden on transport and energy 
has fallen since 2005, possibly reflecting both the growth of GDP and the pursued climate and energy 
policy. 

Source: Eurostat 

5. Research, innovation and competitiveness 

RESEARCH AND INNOVATION 

Denmark is slightly below the EU average, above the US and below Japan and South Korea in terms 
of public support share allocated to research and innovation in the field of energy and environment. 
In terms of intensity of low-carbon technologies patents, Denmark shows a much better performance 
than EU average and main worldwide partners.  

8 

0.01.02.03.04.05.0DKEU-28Energy & Transport related taxes % of GDP, 2005TransportvehiclesTransport fuelHeat &Electricity0.01.02.03.04.05.0DKEU-28Energy & Transport related taxes % of GDP, 2012TransportvehiclesTransport fuelHeat &Electricity 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Denmark 

Source: European Commission based on  EUROSTAT   

COMPETITIVENESS 

Real unit energy costs (% of value added) 

The real unit energy costs3, that is the amount of 
money  spent  on  energy  sources  needed  to 
obtain  one  unit  of  value  added,  has  been  lower 
in  Denmark  than  in  the  EU27  and  the  US  in  the 
past. However, real energy prices have increased 
over time and is now at about the same level as 
in the US, while remain below the EU average. 

Electricity  and  gas  prices  in  Denmark  paid  by 
industrial customers are below EU average. They 
are in line with most non-EU trade partners, with 
the exception of the US. 

Source: European Commission 

Source: European Commission based on EUROSTAT and IEA 

6. Post-2020 Energy and Climate policy Strategy  

COMPREHENSIVE MEDIUM TO LONG-TERM STRATEGY (post-2020) 
FOR CLIMATE AND ENERGY  

  Denmark  has  a  long-term  vision  (post  2020)  for  energy.  This  has,  however,  not  been 

translated into concrete policy as regards the post-2020 perspective. 

  Denmark  has  according  to  its  EU  commitments  a  20  %  greenhouse  gas  emission  target  for 

3  

This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added. 

9 

5.39.58.25.913.28.88.213.78.00246810121416DKEU27US200020092011 
 
 
 
 
 
  
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Denmark 

2020 (compared to 1990). No further targets have been set in relation to 2030.  

  Energy  plan:  The  Government  has  a  long  term  vision  for  the  energy  system  to  be 
independent  of  fossil  fuels  in  2050.  The  Energy  Agreement  (2012)  is  supported  by  a  large 
majority  of  parties  in  the  Parliament.  The  agreement  covers  several  aspects  of  the  energy 
sector,  such  as  support  for  renewable  energy  (wind,  biomass  and  biogas)  and  initiatives  to 
phase out fossil fuels. The initiatives set in the Agreement are intended to develop the energy 
sector towards 2020. It is incorporated in the agreement, that the parties before the end of 
2018 are obliged to discuss initiatives for the period after 2020. 

NATIONAL TARGETS, especially for 2030 

Objectives, 2030-2050 

Targets 

GHG reduction  
Renewable energy  

No 
Yes 

Energy 
savings 

Efficiency 

/ 

Yes (2050) 

Comments 
No specific GHG target for 2030  
Independency  of  fossil  fuels  in  2050  means  that 
the  national  production  of  renewable  energy  in 
2050  in  general  should  cover  the  Danish  energy 
consumption 
“Strategy  for  Energy  Renovation  of  Buildings”   
35%  reduction  in  energy  consumption  for  heating 
in existing buildings by 2050 

7. Regional cooperation  

Regional  cooperation  on  infrastructure  development  is  necessary  to  optimise  the  identification  of 
regional infrastructure priorities and to coordinate cross-border investments. Denmark is a member 
of 3 Regional groups: Electricity Northern Seas Offshore Grid (NSOG), Electricity Baltic Energy Market 
Interconnection  Plan  (BEMIP)  and  Gas  Baltic  Energy  Market  Interconnection  Plan.  Denmark  also 
plans  to  be  part  of  the  regional  initiative  on  the  promotion  of  the  North  Sea  Offshore  Grid,  which 
aims  to  deliver  cost-reduction  to  the  offshore  energy  system.  The  close  regional  cooperation 
between Denmark and Poland, Netherlands, Sweden, Germany  allows the improvement of the gas 
and electricity interconnections. 

Denmark  is  part  of  the  Nordic  wholesale  electricity  markets,  which  includes  the  Nord  Pool  spot 
market, and cooperates with its Nordic neighbours on the advanced integration of energy markets of 
Finland, Sweden, Denmark and Norway.  

8. Cohesion policy contribution 

The EU Cohesion policy provides for investment possibilities to implement energy policy objectives in 
Denmark which will be complemented by national public and private co-financing, aiming at optimal 
leverage. It also ensures integrated territorial solutions to challenges by supporting capacity building, 
technical assistance and territorial cooperation, including the macro-regional strategy for the Baltic 
Sea Region in which Denmark takes part. 

Energy  efficiency:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  41  million  in  energy 
efficiency improvements in SMEs in Denmark.  

Decarbonisation:  Overall,  the  EU  Cohesion  Policy  investments  in  Denmark  over  2014-2020  are 

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Denmark 

expected to contribute to an estimated annual decrease of GHG of around 49 000 tonnes of CO2eq. 
No  EU  Cohesion Policy  investments  in renewable  energy infrastructure  envisaged  in  Denmark  over 
2014-2020; research and innovation in the area of renewable energy may be supported. 

Research, Innovation and Competitiveness: Over 2014-2020, EU Cohesion Policy will invest in R&I and 
in  SME  competitiveness  in  Denmark.  This  will  be  based  on  the  national  strategy  for  smart 
specialisation. For Denmark, the Strategy includes a focus on assisting SMEs in developing resource 
efficient business plans, production methods and operations. At this stage, at least EUR 11 million is 
foreseen for investments in R&I and adoption of low-carbon technologies in Denmark, but this might 
increase further in line with the evolving content of the smart specialisation strategy. 

11