05/31/2021 | Press release | Distributed by Public on 05/31/2021 00:50
Today, the Danish Minister for Climate, Energy, and Utilities presents the report 'From Black to Green: A Danish Sustainable Energy Growth Story ' as part of his participation in the multi stakeholder event 'Partnering for Green Growth', P4G, hosted by the Republic of Korea.
Across the globe, policy makers and commercial entities are grappling with the challenge of how to transition from a power system based on fossil fuels to a renewable based one. The report dives into the complex challenges from Denmark's transition and offers positive and challenging lessons learned so far. The main conclusion is clear: with the right regulatory framework in place, it is not just possible but also vital for energy companies to transition to green energy, if they want to stay competitive and profitable going forward.
Market trends in 2020 show this clearly. Ørsted, having a share of 90 per cent renewable energy in the portfolio compared to 85 per cent fossil fuels in 2006, has doubled its market capitalisation in two years. At the same time, major European oil and gas companies have committed to ambitious renewable energy targets.
'By sharing the story of how an entirely state-owned energy company succeeded in transitioning from black to green, we hope to inspire not only policy makers and regulators, but also other energy companies around the world to do the same and embark on a path towards greener energy.' Dan Jørgensen, Danish Minister of Climate, Energy and Utilities
Recommendations: Stable framework conditions and clear business strategies
Some learnings from the Danish green transition include the importance of energy planning, demonstration projects, economic incentives, competition, permitting and de-risking, in order to incentivise a shift to green energy. Energy planning should be: (1) long-term, (2) transparent, (3) stable and (4) supported by the legislation through concrete reforms - creating a stable environment for decision-making and long-term strategies for companies and investors.
Based on Ørsted's transition, key recommendations for other energy companies include:
Create a sustainable vision:
Develop an exit strategy for fossil fuels:
Develop an entry strategy for renewable energy:
Read more about the lessons from the Danish energy transition in general and Ørsted's energy transition in particular, see link above and below.
Fact box: Achievements in the energy transition of Denmark and Ørsted
About Denmark's green transition:
About Ørsted:
The Danish Energy Agency cooperates with 16 countries, responsible for over 60 per cent of global greenhouse gas emissions, sharing best practices on green transition between authorities, within long-term scenarios and planning, integration of variable renewable energy, offshore wind, energy efficiency and district heating.
The report is published by State of Green, based on contributions from the Danish Energy Agency, and interviews from senior experts from government, academia and Ørsted.
Contact: Birgitte Torntoft at [email protected]