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Community Energy in Denmark
L . G o r r o ñ o - A l b i z u
D e p a r t m e n t o f P l a n n i n g
A a l b o r g U n i v e r s i t y
This project has received funding from the
European Union's Horizon 2020 research
and innovation programme under the Marie
Skłodowska-Curie grant agreement No:
765515.
The content reflects only the authors’ view and the
Research Executive Agency is not responsible for any
use that may be made of the information it contains
1. CITIZEN OWNERSHIP AND
COMMUNITY ENERGY IN DENMARK
The Danish Energy
System in Figures
70% CO2 reduction by 2030
In 2018, renewable energy supplied 36.7% of the total
energy demand
In 2019, 47% of the electricity demand was covered by
wind power
64% of the households are connected to district heating
systems
In 2018, heat pumps only accounted for 0.1% of the DH
demand!!!
Source: Energinet’s website. 13:15, 28 April 2020.
How Much Citizen
Ownership is There
in Denmark?
In Dec 2016,
52% of the total installed wind capacity
had citizen ownership
96% of the DH demand was supplied
by municipal companies and
consumer cooperatives
OPEN ACCESS ARTICLE
https://doi.org/10.1016/j.erss.2019.101231
Important differences exist
between citizen ownership
models. We should not
expect the same outcomes
from all models.
Figure 2: Danish citizen ownership categories and their connection with Danish
citizen ownership models. The ownership of energy infrastructure and utility
companies may consist of several citizen ownership models. Consequently, the
ownership may be formed by a combination of different citizen ownership
categories. Note that prosumers traditionally have been individual owners, but
opportunities for collective prosumers are emerging and will create changes to
this ownership model [54]. When reading the diagram, note that the categories
are represented in boxes and that there are no axes with units showing a higher
or lower degree within the category.
2. INNOVATION IN COMMUNITY
OWNERSHIP
Challenges for
Onshore Wind Power
Increasing shares of onshore wind power and other
forms of variable renewable energy results in:
Greater local opposition
Lower market prices (the merit-order-effect)
Curtailment due to grid congestions
Source: S. Djørup, J.Z. Thellufsen, P. Sorknæs, The electricity market in a renewable
energy system, Energy. 162 (2018) 148–157. doi:10.1016/j.energy.2018.07.100.
LCOE of onshore
wind in DK
Solution:
Sector integration
Policies?
Organisational
characteristics?
Location?
In August 2018, in a general assembly,
the consumer-owned DH company in
the town of Hvide Sande decided to
purchase the local wind turbines.
Two reasons:
1. The economy of the wind turbines
2. The green values of the DH company (natural
gas used for heating in moments when the
local wind turbines are curtailed and the
electric boiler is stopped!!)
OPEN ACCESS ARTICLE
https://doi.org/10.3390/en13061508
?
What are the benefits of the co-ownership of wind
turbines and DH systems? How does the location
influence? How do the current Danish policies and
regulations encourage/discourage co-ownership
solutions? …
Organisational
Challenges
Reduce overinvestments in the electricity grid
Reduce local opposition to wind turbines
Increase the attractiveness of investments in wind
turbines and power-to-heat in DH
The (Theoretical) Benefits of the
Co-ownership Solution
In combination with the local cross-sector integration case, the co-ownership solution could
(theoretically) provide several benefits:
reduction of overinvestments in grid expansion and reinforcement,
improved economic attractiveness of wind turbines and P2H units,
improved utilisation of local wind power,
reduction of burning of fuels,
better economy for the local DH consumers,
better economy for the local electricity consumers, and
improved local acceptance of wind turbines.
Ultimately, this ownership model could have the potential to accelerate the implementation of a renewable
energy system with integrated energy sectors.
Limitations for the Implementation of the
Co-ownership Solution with Local Integration
The role and possibilities of electricity grid
operators
Electricity grid tariffs and taxes
The design of the electricity spot market
The lack of targeted incentives for local
cross-sector integration
Fossil fuel
energy
system
Renewable
energy system
with integrated
sectors
Fundamental changes in the
technical characteristics
Redesign the institutional conditions
Reconsider the organisation of the
energy system
Future Perspectives for Research on
Ownership and Smart Energy Systems
What are the implications of the co-ownership solution for DH and electricity
consumers?
Would single-sector energy companies benefit from transitioning to cross-sector
energy companies?
?
3. COMMUNITY ENERGY IN TIMES
OF CRISIS
Community energy, understood as local and inclusive citizen ownership of energy, may help to develop
more resilient communities and more just societies through
participatory and democratic decision-making
distribution of benefits, incl. common good projects (local development and job creation, addressing energy
poverty…)
reinforcement of local business and personal relationships
…
The positive dynamics created in community energy projects may be beneficial to address the challenges of our
societies beyond energy or climate issues.
Thank you for your attention!
L . G o r r o ñ o - A l b i z u
l g a @ p l a n . a a u . d k
D e p a r t m e n t o f P l a n n i n g
A a l b o r g U n i v e r s i t y
This project has received funding from the
European Union's Horizon 2020 research
and innovation programme under the Marie
Skłodowska-Curie grant agreement No:
765515.
The content reflects only the authors’ view and the
Research Executive Agency is not responsible for any
use that may be made of the information it contains

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Community Energy in Denmark

  • 1. Community Energy in Denmark L . G o r r o ñ o - A l b i z u D e p a r t m e n t o f P l a n n i n g A a l b o r g U n i v e r s i t y This project has received funding from the European Union's Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie grant agreement No: 765515. The content reflects only the authors’ view and the Research Executive Agency is not responsible for any use that may be made of the information it contains
  • 2. 1. CITIZEN OWNERSHIP AND COMMUNITY ENERGY IN DENMARK
  • 3. The Danish Energy System in Figures 70% CO2 reduction by 2030 In 2018, renewable energy supplied 36.7% of the total energy demand In 2019, 47% of the electricity demand was covered by wind power 64% of the households are connected to district heating systems In 2018, heat pumps only accounted for 0.1% of the DH demand!!! Source: Energinet’s website. 13:15, 28 April 2020.
  • 4. How Much Citizen Ownership is There in Denmark? In Dec 2016, 52% of the total installed wind capacity had citizen ownership 96% of the DH demand was supplied by municipal companies and consumer cooperatives OPEN ACCESS ARTICLE https://doi.org/10.1016/j.erss.2019.101231
  • 5. Important differences exist between citizen ownership models. We should not expect the same outcomes from all models. Figure 2: Danish citizen ownership categories and their connection with Danish citizen ownership models. The ownership of energy infrastructure and utility companies may consist of several citizen ownership models. Consequently, the ownership may be formed by a combination of different citizen ownership categories. Note that prosumers traditionally have been individual owners, but opportunities for collective prosumers are emerging and will create changes to this ownership model [54]. When reading the diagram, note that the categories are represented in boxes and that there are no axes with units showing a higher or lower degree within the category.
  • 6. 2. INNOVATION IN COMMUNITY OWNERSHIP
  • 7. Challenges for Onshore Wind Power Increasing shares of onshore wind power and other forms of variable renewable energy results in: Greater local opposition Lower market prices (the merit-order-effect) Curtailment due to grid congestions Source: S. Djørup, J.Z. Thellufsen, P. Sorknæs, The electricity market in a renewable energy system, Energy. 162 (2018) 148–157. doi:10.1016/j.energy.2018.07.100. LCOE of onshore wind in DK Solution: Sector integration Policies? Organisational characteristics? Location?
  • 8. In August 2018, in a general assembly, the consumer-owned DH company in the town of Hvide Sande decided to purchase the local wind turbines. Two reasons: 1. The economy of the wind turbines 2. The green values of the DH company (natural gas used for heating in moments when the local wind turbines are curtailed and the electric boiler is stopped!!) OPEN ACCESS ARTICLE https://doi.org/10.3390/en13061508 ? What are the benefits of the co-ownership of wind turbines and DH systems? How does the location influence? How do the current Danish policies and regulations encourage/discourage co-ownership solutions? …
  • 9. Organisational Challenges Reduce overinvestments in the electricity grid Reduce local opposition to wind turbines Increase the attractiveness of investments in wind turbines and power-to-heat in DH
  • 10. The (Theoretical) Benefits of the Co-ownership Solution In combination with the local cross-sector integration case, the co-ownership solution could (theoretically) provide several benefits: reduction of overinvestments in grid expansion and reinforcement, improved economic attractiveness of wind turbines and P2H units, improved utilisation of local wind power, reduction of burning of fuels, better economy for the local DH consumers, better economy for the local electricity consumers, and improved local acceptance of wind turbines. Ultimately, this ownership model could have the potential to accelerate the implementation of a renewable energy system with integrated energy sectors.
  • 11. Limitations for the Implementation of the Co-ownership Solution with Local Integration The role and possibilities of electricity grid operators Electricity grid tariffs and taxes The design of the electricity spot market The lack of targeted incentives for local cross-sector integration
  • 12. Fossil fuel energy system Renewable energy system with integrated sectors Fundamental changes in the technical characteristics Redesign the institutional conditions Reconsider the organisation of the energy system
  • 13. Future Perspectives for Research on Ownership and Smart Energy Systems What are the implications of the co-ownership solution for DH and electricity consumers? Would single-sector energy companies benefit from transitioning to cross-sector energy companies? ?
  • 14. 3. COMMUNITY ENERGY IN TIMES OF CRISIS
  • 15. Community energy, understood as local and inclusive citizen ownership of energy, may help to develop more resilient communities and more just societies through participatory and democratic decision-making distribution of benefits, incl. common good projects (local development and job creation, addressing energy poverty…) reinforcement of local business and personal relationships … The positive dynamics created in community energy projects may be beneficial to address the challenges of our societies beyond energy or climate issues.
  • 16. Thank you for your attention! L . G o r r o ñ o - A l b i z u l g a @ p l a n . a a u . d k D e p a r t m e n t o f P l a n n i n g A a l b o r g U n i v e r s i t y This project has received funding from the European Union's Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie grant agreement No: 765515. The content reflects only the authors’ view and the Research Executive Agency is not responsible for any use that may be made of the information it contains