Presented by Nicolai Zarganis, Head of Division, Danish Energy Authority, denmark, at the IEA DSM Programme workshop in Copenhagen, Denmark on 19 April 2006.

1. The New Structure for
PSO Activities in Denmark
- Goals and Overall set-up
Nicolai Zarganis
Head of Division
Danish Energy Authority
Seminar
19 April 2006
Copenhagen

2. Agenda
Introduction
The importance of end-use energy efficiency
Historical and actual measures
The new political framework
Political agreement and action plan
New measures

3. Final Energy Consumption
- all sectors except transport
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
Indeks(1980=100)
Final energy GDP Intensity
Consumption 3 % lower in 2003 than in 1980
50 % growth in GDP

4. Effect of End-use Energy Efficiency
in Denmark
0
100
200
300
400
500
600
700
800
900
1975 1978 1981 1984 1987 1990 1993 1996 1999
PJ
Without improvements in efficiency
Actual consumption
Without improvemnets in efficiency by the end users.
End-use energy efficiency
Supply efficiency
All sectors except transport

5. Energy Efficiency Measures in Denmark
• Energy taxes in households and in the public sector
• CO2 taxes on energy used in all sectors
• Building codes
• Energy labelling of buildings.
• Energy labelling of appliances (EU and GEEA).
• Minimum efficiency standards.
• Agreements on energy efficiency in industries (CO2
package)
• The Electricity Saving Trust.
• The energy-saving activities carried out by the grid
companies (electricity, natural gas, district heating)
• Energy Saving Act
• There have been different subsidies schemes
Taxation:
Buildings:
Appliances:
Industry:
General:

6. Energy prices in household - composition
ElectricityPetrol Oil for
heating
ElectricityOil for
heating
ElectricyOil for
heating
Petrol Petrol
0%
20%
40%
60%
80%
100%
Prices excl. taxes Energy and CO2 taxes VAT
1980 1990 2002

7. Energy for heating of Danish households
Final energy consumption
40
50
60
70
80
90
100
110
120
130
1975 1979 1983 1987 1991 1995 1999
Index
Heated Floor Space
Final energy consumption
Final consumption per m2
Net Heat Demand
40
50
60
70
80
90
100
110
120
130
1975 1979 1983 1987 1991 1995 1999
Index
Heated Floor Space
Net Heat Demand
Net Demand per m2
• Efficiency has increased dramatically since 1975
• Final energy per m2 is still declining – shift in heating systems
• Net heat demand per m2 has been almost stable the last 20 years

8. Building Codes
0%
20%
40%
60%
80%
100%
BR 1982 BR 1995 BR2005

9. Energy Intensity in Manufacturing
Final energy manufacturing
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
1975 1979 1983 1987 1991 1995 1999 2003
PJ
0
0,2
0,4
0,6
0,8
1
1,2
PJ/billDKK
Final energy
Intenisty
Decrease in intensity: 1975-2003 1,2% p.a.
1994-2003 2,3% p.a.

10. Energy Intensity in Manufacturing
How can the change in 2003 be explained:
Change in economic activities
Low growth from 1983-93
High growth since
New policy measures
CO2 tax package
• CO2 tax on energy
• Voluntary agreement scheme
• Subsidy scheme
DSM activities by electricity utilities

11. DSM by Grid Companies
Electricity grid/distribution companies has
worked with energy efficiency for more than 10
years
The activities are based on a running process of
annual planning and reporting
The costs are included in the tariffs
Energy consulting/audits, campaigns,
information, etc.

12. The new political framework
for energy efficiency

13. The Process
Development of a new plan was decided in a
political agreement in March 2004
A draft Action Plan was published in December
2004
10 June 2005 a broad political agreement on
future energy conservation efforts
The final action plan was published in
September 2005

14. Political Framework
Increasing energy efficiency is supporting:
Economic growth and competitiveness
Security of supply
Environmental protection and CO2 reduction
Basic principles:
Decentralised implementation
PSO-financing
Cost-efficiency
Market-based approach
Focus on realisation of profitable savings

15. Energy Saving Potential
The potential is large
30 – 50 % in most sectors and end-uses
A large part of the potential is economic attractive
For the consumers
Socio-economic
It will not be realised by itself
Market failures and imperfections
Barriers
There is a need for policies and measures
Focus on cost-effective measures with a big saving potential

16. Economic Potential
from the Action Plan
Potential
Socio-economic up to 2015 24 %
Private-economic
- currently
16 %
Private-economic
– up to 2015
42 %
Still potential in all sectors and end-uses
Half of the cost-effective potential is in space-heating

17. Objectives and Targets
The overall goal is to reduce final energy
consumption (excluding transport)
Actual saving target at 1,7 % per year
Concrete energy savings, which can be documented,
corresponding to an average of 7,5 PJ annually
during the 2006-2013 period
Transport not included
This target secure a small decrease in final
energy consumption.

18. Projected Development in Energy Consumption
Final energy (ex. transport)
410
420
430
440
450
460
470
480
4901993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
PJ
Statictic
BaU forecast
Annual saving 7,5 PJ

19. Network and Distribution Companies...
Shall deliver a significant part of the increased
savings
Include electricity, natural gas, district heating
and oil companies
The companies will together get an annual
saving target and a large degree of freedom to
deliver in the cheapest way
Focus on realisation of savings in the cheapest
way

20. Where will the savings come from?
Savings excl. transport Actual Draft Agree-
Annual savings, PJ Action plan ment
Electricity Saving Trust 0,39 0,49
Electricity grid companies 0,78 0,97
Natural gas companies 0,08 0,10
District heating 0,16 0,20
Oil companies
New buildings 0,00 0,70
Existing buildings 0,60 1,82
Public sector 0,00 0,25
Appliances 0,30 0,30
Industry 0,40 0,50
I alt 2,71 5,33 7,5
Note: 1 % = 4,35 PJ

21. Conclusion
Strong political support on energy efficiency
Focus on market based initiatives
Main measures:
EU initiatives
Regulation
Obligation to grid and distribution companies
Measurement of effect will be important