Electricity plays an important role in reducing greenhouse gas emissions. By converting from fossil fuels to the use of green electricity, a large part of emissions will disappear. Areas in which electrification pose a relevant alternative to fossil fuels include heating, transportation and parts of the industrial production processes.
Therefore, electrifying Denmark is a is a very central tool in the fulfillment of the Danish government’s ambition of reducing the greenhouse gas emissions in Denmark by 70 pct. in 2030 compared to 1990. After 2030, electrification will continue to support the transition to a 100 pct. climate-neutral society. In June 2021, the Danish government presented a strategy that sets a clear direction for the electrification of Denmark. The strategy contains eight guidelines that the Danish government believes are crucial elements in the transition from a fossil-fueled to an electric-powered society:
- A cost-effective green transition in social balance
- Continued development and growth of renewable energy sources
- Intelligent integration of energy into the energy system
- Involvement of affected citizens in the expansion of renewable energy
- Continued high security of electricity supply
- Green growth and focus on Danish jobs
- Development of technologies for the electrification of the most challenging sectors
- Focus on collaboration and integration of electricity systems across Europe
Security of supply
It is crucial that we can rely on electricity supply to ensure a well-functioning society. High security of electricity supply will however be increasingly challenged by the closure of older power plants and the increasing share of fluctuating, green energy in the energy system.
Today Denmark has one of the most reliable electricity systems in the world. Over the last 10 years, Danish electricity consumers have had power in their sockets 99.996% of the time, equivalent to approximately 20 minutes of annual outage on average per consumer. Most disruptions are due to failures in the local electricity network. So far, there have never been disruptions of electricity supply due to lack of production capacity.
The Danish TSO Energinet and the Danish Energy Agency are closely monitoring and analyzing the development in the security of electricity supply in order to ensure the best possible balance between high security of electricity, affordability as well as ensuring a successful green transition by integrating renewable energy. Once a year the Minister of Climate, Energy and Utilities announces the planned level of security of electricity supply 10 years ahead.
Power-to-X: Green Hydrogen to Fuel the Future
Direct and indirect electrification are integral parts of the Danish path towards carbon neutrality. Power-to-X is expected to play a key role in decarbonizing hard-to-abate sectors, such as long haul transport, aviation, shipping and segments of the heavy industry.
Power-to-X is an umbrella term. It refers to a series of technologies using renewable power for the production of green hydrogen through electrolysis. Hydrogen can either be used directly or combined with green carbon (CCU) or nitrogen and converted into different products, including fuels and chemicals (e.g. methanol, ammonia, aviation fuel, plastic, etc.).
It is important to create the right conditions for a robust development of hydrogen and Power-to-X technologies as well as increased demand for green fuels. In order to become competitive, the production of hydrogen and hydrogen-based derivatives needs to reach an industrial scale. The Danish government has already allocated substantial funds to this aim. Read more about Power-to-X here.