Geothermal energy has long been used for district heating in Denmark, but lately political and industry interest therein has been on the rise. This has resulted in an increase in applications to explore for and produce geothermal energy. Since 2017, five new exploration licences have been granted and five additional licences are currently being assessed by the Danish Energy Agency. Geothermal energy will help to fulfil the political goal of a carbon-neutral Denmark by 2050.
The Ministry of Climate, Energy and Utilities recently invited companies to take part in the eighth Danish licensing round for oil and gas exploration and production in the Danish North Sea. Licences were expected to be issued this summer, but political pressure on the government elected in June 2019 means that the eighth licensing round's future is uncertain.
The new government has raised the bar for climate and environmental goals with the aim of making Denmark the world leader in the transition to renewable energy. The government's climate plan calls for a significant focus on the use of wind energy and a new agreement goes even further than the 2018 energy agreement, with plans for an offshore energy island with a capacity of at least 10GW.
The signatories to the Energy Agreement recently decided the location of the first of three new offshore wind farms that will be put up for tender. Unlike previous projects in which the government was responsible for developing the offshore site and preparing the grid connection, the new wind farm will be procured through a procedure in which the winning tender will be responsible for developing and preparing the grid connection.
The government and all parties in Parliament recently entered into an agreement which entails a major commitment to developing green energy by 2030. The agreement contains a broad range of green initiatives and tax reliefs on electricity which aim to encourage Danish consumers to swap fossil fuels for green electricity. Similarly, the planned modernisation of the heating sector aims to provide both companies and consumers with greener and cheaper heating.