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New Danish Electricity Law
 
In May, the Danish Parliament agreed to a new electricity law that set the framework for a competitive market for electricity in Denmark. With the law comes a change of the Danish rules for sale of electricity from renewable-energy generators, e.g., windturbines, to the electric grid. The present very successful system is based on a combination of a tariff set to 85% of the consumer price and a partial reimbursement of the electricity taxes. The new system, operational from 2003, will be based on a market for renewable electricity, driven by an obligation by all consumers to buy an increasing share of electricity from renewables. This share will be raised annually by the government, following the plan of increasing renewable energy supply to 13% of primary energy in 2005 and probably to 35% in 2030.
It was somewhat a surprise for many in the Danish renewable-energy community that the parliament would leave a well proven system. Many fear that the new system, and the uncertainties that it brings, will slow down the development of windturbines in Denmark.
The text of the new law is available in English and in Danish from the Danish Energy Agency: http://www.ens.dk.
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ISSUE #26 (855KB) 18 pages (1999-08-01)
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