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Why the energy crisis isn’t over yet in Denmark

Denmark has cut the majority of its consumption of Russian gas but it is too early to disregard all energy saving measures, experts advise.

Why the energy crisis isn’t over yet in Denmark
Energy prices have fallen in Denmark and gas stocks are healthy but experts have advised against moving away from measures to conserve gas. File photo: Ida Marie Odgaard/Ritzau Scanpix

Gas stocks in Denmark remain high despite the winter having reached the halfway mark, but it would not be prudent to drop good energy saving habits, broadcaster DR writes.

Before the Russian invasion of Ukraine, 40 percent of the natural gas used by Europe came from Russia. That has now been reduced to around 8-10 percent, DR reports.

This means that the EU has moved towards its target of becoming independent of Russian gas, a senior consultant in the Danish energy sector told the broadcaster.

“We have put plans into action and with the amount of gas we are saving now, we are almost at the point of being able to go without Russian gas,” Kristian Rune Poulsen of Green Power Denmark, the interest organisation for the energy sector, said.

The reason for this is that imports of liquid gas from North America and the Middle East have been increased, but also because consumers and businesses across Europe have managed to reduce consumption.

“In Denmark, we used 37 percent less gas in 2022 compared with 2021. How much of this is actual savings and how much is from switching to other fuels, we don’t yet know for sure,” Poulsen said.

Europe currently has good gas stocks and prices are expected to be stable for the rest of the winter.

READ ALSO: Low European gas prices ‘will benefit’ energy consumers in Denmark

But it’s too early to call off the energy crisis and turn up thermostats without a care, according to a number of experts who spoke to DR.

“There’s no doubt that it’s a huge success that we’ve succeeded in saving 20-25 percent on gas and significantly increased imports of liquid gas,” Brian Vad Mathiesen, energy researcher at Aalborg University, said to DR.

“But we still get Russian gas through Turkey and Ukraine, and countries like Hungary and Romania are still dependent on Russian gas,” he said.

Moscow could therefore still use gas as leverage to drive a wedge between European countries, he stated.

A senior researcher in international relations also said that measures to conserve gas should continue.

“We’ve been good at cutting back. But if we stop saving now, we’ll run into problems next year,” Trine Villumsen Berling of the Danish Institute for International Studies told DR.

Much of the gas currently stored was originally supplied by Russia, she noted. Power plants still need to use gas to produce energy when weather conditions reduce wind output, she also said.

“We need Danes to still have those good habits. We must remain aware of how we use energy and how much we turn on the heating for quite a while yet,” she said.

“We must remember that in future we won’t get much gas from Russia and that we are only in this healthy situation because we have been good at conserving,” added Poulsen of Green Power Denmark.

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ENERGY

Denmark launches its biggest offshore wind farm tender

The Danish Energy Agency on Monday launched its biggest tender for the construction of offshore wind farms, aimed at producing six gigawatts by 2030 -- more than double Denmark's current capacity.

Denmark launches its biggest offshore wind farm tender

Offshore wind is one of the major sources of green energy that Europe is counting on to decarbonise electricity production and reach its 2050 target of net zero carbon production, but it remains far off the pace needed to hit its targets.

Denmark’s offshore wind parks currently generate 2.7 gigawatts of electricity, with another one GW due in 2027.

The tender covers six sites in four zones in Danish waters: North Sea I, Kattegat, Kriegers Flak II and Hesselø.

“We are pleased that we can now offer the largest offshore wind tender in Denmark to date. This is a massive investment in the green transition,”  Kristoffer Böttzauw, head of the Danish Energy Agency, said in a statement.

Investment in offshore wind plummeted in Europe in 2022 due to supply chain problems, high interest rates and a jump in prices of raw materials, before bouncing back in 2023.

A record 4.2 gigawatts was installed in Europe last year, when a record 30 billion euros in new projects were approved, the trade association WindEurope said in January.

It said it was optimistic about the future of offshore wind in Europe, expecting new offshore wind capacity of around five gigawatts per year for the next three years.

However, it noted that that was still far short of what is needed if Europe wants to hit its 2030 target of 111 gigawatts of offshore wind installed capacity, with less than 20 gigawatts installed at the end of 2023.

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