Country:Denmark
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Policy status:Unknown
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Description:The penetration of industrial CHP in Denmark remained low before 1992, largely owing to the low energy intensity of the Danish industrial sector compared to industry in neighbouring countries. In 1992, an industrial CHP programme was launched. Its objective was to realise the potential for industrial CHP, which was estimated at an additional 400 MW. Under the programme, investment subsidies were introduced for industrial energy efficiency measures, as was a bonus system for electricity production from gas and biomass in combined heat and power production. Following the introduction of the first Green Tax Package, industrial companies could obtain state grants of up to 30% of investment costs in energy efficiency, including CHP. This provision is still in force. In special cases, small-medium size enterprises can obtain 40% coverage of the investment of industrial CHP plants from the government. However, a time limit of six years has now been set for the subsidy to industrial plants. As a consequence of the support measures, the number of industrial auto-producers rose to more than 100 by 1997.The total potential for industrial CHP was reassessed in 1995 to be 750 MW. In 2000, installed capacity was more than 300 MW and electricity production from industrial CHP was about 8% of total power generation. Industrial CHP is almost exclusively based on natural gas, but a few biomass-fuelled plants have been commissioned. The government plans to develop CHP further in future. The Energy 21 programme of 1996 set a number of CHP-related targets for the long run (to 2030), which are still in force: - The bulk of future heat and electricity consumption is to be covered by CHP. - Individual gas-based heating systems are to be converted to CHP-based district heating. - Industrial CHP and mini-CHP are to be developed to a total capacity of 1 400 MW or approximately 10% of total public electricity generating capacity in 2000. - Coal use in power plants is to be phased out. - Electricity from renewable energy sources, excluding large hydro and electricity from waste, is to account for 20% of power generation by 2003 and 79% by 2030.

Last modified: Wed, 29 Aug 2012 14:21:58 CEST