Denmark – smart grid strategy

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The Danish Ministry of Climate, Energy and Building has recently published its strategy setting the course for development of a smart grid which can “make the green transition cheaper, provide savings on electricity bills and help promote new services and products to the benefit of consumers.”

The Strategy describes a number of specific initiatives, to be performed by the central government as well as by the energy sector. The energy sector has an important role, since among other things development of a smart grid must be encouraged by market forces through development of consumer electricity products which make it attractive for households and businesses to make their flexible electricity consumption available to the electricity system.

There is already some potential to move electricity consumption to off-peak hours and to coordinate the energy systems, however this potential will increase considerably in the years to come. Efforts up to 2020 must therefore be channelled into developing new solutions and to establishing the right framework for developing the electricity system, in order to promote the green transition and make it as cheap as possible, including managing the emerging growth in solar energy and large amounts of wind energy from 2020 and onwards.

The basis for the strategy is the deployment of hourly read meters to all consumers. Currently about 50% of consumers accounting for about 75% of electricity consumption have smart metering installed but it is expected that hourly settlement will not have been fully rolled out until all consumers have remotely-read hourly meters installed. This is projected for the period from 2016 to 2020.

Other key elements include the development of a wholesale model and data hub accommodating hourly settlement and a model for hourly settlement and variable tariffs, which will be undertaken by the Danish Energy Association and Energinet.dk. Due to the adoption in spring 2012 of a wholesale model, electricity trading companies will be the only players in future with direct access to consumers. One of the intentions of the wholesale model is to make for greater competition in the electricity market, which in turn can lead to tailored smart grid products and, ultimately, savings on electricity bills for consumers. The data hub is proposed to provide consumers with easier access to their own data and make it easier to change electricity supplier.

Read Denmark’s smart grid strategy HERE.

By Jonathan Spencer Jones

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