Danish commission recommends more market-based renewables

The deployment of renewable energy in Denmark should increasingly be market-based, the government-appointed Energy Commission has said.

The commission was tasked about a year ago with making recommendations for the country's energy policy from 2020 to 2030. It has now completed its work and said last week that Denmark needs a clear and ambitious energy and climate policy to reach its goal of becoming a low-emissions society based on renewable energy by 2050.

The recommendations include phasing out renewable energy subsidies as the technologies become competitively viable. In the meantime time, support should be allocated through technologically neutral tenders. The market should be used to drive down prices, and the different renewables technologies should compete with each other, the commission says.

According to the panel, the government's target of at least 50% renewable energy by 2030 is a stepping-stone towards the 2050 goal. However, it does not think it would be sensible to set a rigid route towards 2030 now.

Key recommendations also include internationalisation of the Danish energy policy and increased electrification.

Welcoming the report, Denmark's energy minister Lars Lilleholt said it shows that being ambitious and focusing on cost can go hand in hand. "We need to adjust our energy and climate policies in order to gain as much green transition for our expenses as possible," the minister added.

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