[Legislative]

1. [Danish Policy] [Legislative] • Energy 2000, 1990 • Target to reduce CO2 emissions in 2005 by 20% compared to 1988 levels. • Energy 21, 1996 • Reinforce targets of Energy 2000 by introducing new measures to achieve goals. • Renewable energy share to be 12-14% of energy supply in 2005 • Ban on construction of new coal fired power stations. Current Danish Energy Policy is being considered which may result in this law being stopped. • Wind Orders, 1996 • -Land Based Wind Order • -Offshore Wind Order, 750MW by 2008 • Combinedexpansion of both to be 1500MW in 2005. Target was almost reached by Onshore at the end of 1998, at present onshore capacity is 2,600MW. • Electricity Reform, 1999 • Consumers obligated to ensure 20% of supply is from renewables, this to form the basis for a Green Market. • Green Certificates are awarded to generation companies per MWh produced, then are sold on the Green Market. • Market deemed impractical at present in 2001, implementation postponed indefinitely. May be realised if EU opts for harmonised scheme for supporting renewables in the future. • Climate 2012, 2000 • -Supplementary firing of straw and wood chips, Aim to burn 150,000 tons of straw by end of 2004. • -Political agreement on a concrete basis for fixing the settlement prices to enable offshore wind to be as economically feasible as onshore. • -Creates foundation for political decisions on climate change issues in coming years. • -Predicts deficit of 4.4% for emissions targets.

2. [Danish policy] [Economic] • Environmental Bonus • Environmental premium per kWh in addition to the market electricity price. Is specific to technology. • Onshore wind is 0.43 DKK/kWh for the first 12,000 full load hours, Offshore wind is 0.453 DKK/kWh for the first 25,000 full load hours. This gives investment in new Offshore wind a larger incentive. • Combined Energy and CO2 Tax, 1992 • Renewables given exempt status. • Revenue used for subsidies for environmentally friendly forms of generation. • Green Tax Package, 1995 • Aim to increase energy efficiency in Trade and Industry sector. • Subsidies for energy saving. • Energy Tax Rates Increased, 1998 • -Prediction of future levels not satisfactory to fulfil goals, introduced as a result of a study into projected emissions and share of renewables.

3. [Danish Policy] [Research and Development] • Development Programme for Renewable Energy (DPRE) • -Encourages development of technologies: Biomass, Wind and Solar Energy. • -Annual Budget- DDK 130-160 Million; 15% goes to subsidies for development of technology and demonstration projects, Rest goes towards subsidising installation of systems. • Energy research Programme (ERP) • -Supports Renewable Energy sources and Electricity Savings. • -Annual framework for subsidies – DKK 100 million. • Involved with - Subsidised development of Wind, Research, promoting biomass for energy purposes. • Renewable Energy Island Project, 1996 • Subsidised project to demonstrate the economic/technical/organisational conversion of an entire community to 100% renewable energy supply over a ten year period. • 1997, Island of Samsoe is selected. • Wind, both on and offshore, is the main source of power, but biomass fuelled district heating systems, and home based renewable systems are also very important.

4. [Danish Policy] [Environmental Drivers] • Potential: • - Small potential for hydroelectric schemes also contributed to growth of other renewables, especially wind which has been used in Denmark since the beginning of the century. • Old reliance on coal and oil • - The oil crisis of the 1970’s caused Denmark to explore its territories in the North Sea for oil, Denmark is now over 100% self sufficient in oil and gas. This resulted in oil powered generation, and then coal fired as a result of fiscal incentives. This meant huge greenhouse gas emissions per capita and growing environmental concerns caused a policy move towards very ambitious efforts to reduce emissions. • Kyoto Agreement,1997 • - International Climate Change Program, Denmark to reduce greenhouse gas emissions by 21% in 2008-2012 compared to 1990 levels.