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The Impact of the Energy Strategy 2050 on the Danish Consumer

Currently 80% of Denmark’s energy needs come from oil, coal and gas. So the transition to a clean green energy supply by 2050 will be a major challenge for all Danes.

For the average Danish household it is hard to predict how life will be in 2050. Though the transition to this fossil fuel independence will certainly not be free and will require huge sums of money. Today, fossils fuels are cheaper than renewable energy, though a reformed energy tax system will help make renewable energy a more attractive incentive because of lower taxation.

With massive investment needed to build a new green energy infrastructure, it may in the short term cost a little more to the average household. Though overall it is predicted that the cost to the Danish consumer in 2050 will stay the same as today, due to the increases in energy efficiency.

An economically responsible transition is important to the Danish government, so all new initiatives up to 2020 have been fully financed. In helping to fund this green transition, an average Danish household energy bill in 2020 - heated on oil, gas or district heating - will have extra costs of approx 900 Kroner ($175), which will be a 4-5% increase. The electricity costs per household will be an extra 250dk ($49).

For the majority of Danish households, they will have a number of options to maintain their heating bill at an unchanged level, through energy efficient measures like renovation and replacement and purchase of new equipment. With concerted efforts to promote energy savings, it is expected the average household will be using 5% less energy in 2020.

With Denmark committing itself to the target of 30% renewable energy by 2020, Danish homes will become even more energy conscious than today. Already 62% of households are connected to district heating systems, by using more biomass energy; this will offer multiple savings, including more efficiency and lower local fuel costs. While worn out oil furnaces or gas installations in households will be replaced by heat pumps which will be more energy efficient in the long term and again help lower energy bills.

State of green

Stateofgreen.com is the official website for energy, climate adaptation and environmental activities in Denmark.