Country profiles: Denmark
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1 Cuntry prfiles: Denmark Last updated: date (22/04/2015) 1 Implementatin f Tracking Systems 1.1 Electricity Disclsure Disclsure is regulated in Denmark by the Bekendtgørelse m deklaratin af elektricitet til frbrugerne (Elmærkningsbekendtgørelsen) in its latest versin frm 30 Nvember Guidelines fr the calculatin f bth general (i.e. default) and individual electricity labels are available and annually updated by the Danish TSO energinet.dk, wh acts as cmpetent bdy fr disclsure in Denmark. The Danish Energy Agency is respnsible fr preparing the legislatin and must apprve the "technical guidelines" prepared by Energinet.dk. Fuels are brken dwn int cal, natural gas, wind/hydr/slar, waste/bimass/bigas, 1 il and nuclear pwer. CHP is nt explicitly distinguished. Disclsure infrmatin is annually updated. Electricity trading cmpanies in Denmark can either use a general electricity label (default) r an individual electricity label (used fr explicit tracking). General labels are used fr average electricity supplies (withut specific claims). Energinet.dk prepares the general label. Cmpanies can n vluntary basis market individual electricity prducts (e.g. green pwer). Labels fr these prducts shall be prepared and dcumented in accrdance with guidelines prvided by Energinet.dk. Disclsure infrmatin shwing the cmpany prtfli is nt used in Denmark currently, as this purpse is fulfilled by the general label. Disclsure infrmatin always refers t calendar years. As tracking instruments, bth GO and ther adequate mechanisms (bilateral cntract infrmatin r ther electrnic certificates) are eligible. RES-E and HE-CHP may nly be disclsed t cnsumers if they are tracked by Guarantees f Origin. Other adequate instruments (like cntract based tracking) shuld n the ther hand be used if a Danish electricity trading cmpany, fr instance, wish t market nuclear pwer. The general electricity label is calculated by Energinet.dk as a residual mix accrding t the fllwing methdlgy Available prductin attributes = Prductin (calendar year x) - issued GO in Denmark (based n prductin in calendar year x) + expired GO in the Danish registry (all expired GO issued fr prductin in April year x-1 t March year x, and accrdingly expired between April year x and March year x+1). The Danish residual mix calculatin in principle als wuld take cntract based tracking int accunt (electricity trading cmpanies must infrm Energinet.dk abut the sale f these prducts and the attributes cvered by cntract based tracking in the previus year by 31 March). S far cntract based tracking has nt been used in Denmark hwever. In case f deficit in Denmark - i.e. available prductin attributes are less than the untracked cnsumptin in Denmark - the Eurpean Attribute Mix is used fr balancing. All GO which is meant t be used fr the disclsure perid f calendar year x shuld be cancelled befre deadline f 31 March year x+1. GO which are nt expired until this date can be used fr disclsure fr the calendar year x+1 instead. Energinet.dk uses the results frm RE-DISS fr the Eurpean Attribute Mix (share f different fuel categries) directly. All ther data inputs in the calculatin are based n data cllected frm Energinet.dk. The Assciatin f Danish Electricity Traders has, tgether with thers and Energinet.dk, develped a Danish standard fr green electricity prducts that is available n the website (nly available in Danish). This standard includes minimum demands in the descriptin f the green prducts and what suppliers can claim in relatin t climate effect. Three verall prduct types exist: - CO2-reductin (e.g. cancellatin f CO2 qutas) 1 The statement wind/hydr/slar means that the share f these energy surces is calculated and disclsed tgether. The same applies fr waste/bimass/bigas.
2 Summary f findings fr Denmark - Cntributin t new renewables (dnatins) - Based n GO (prductin device nt lder than 2 years, nt lder than 10 years), n restrictins Disclsure Figures The general disclsure figures are centrally available n the website f Energinet.dk. 2 Fr the year 2013, 2012 and 2011, the fllwing figures have been published: Table 1: Disclsure figures fr the years 2013, 2012 and 2011 Fuel Share in 2013 General Fuel Mix Share in 2012 General Fuel Mix Share in 2011 General Fuel Mix Cal and Brwncal 54% 40% 44 % Natural Gas 16% 21% 22 % Wind, Hydr and Slar 10% 11% 13 % Waste, Bimass and Bigas 7% 13% 13 % Oil 1% 1% 1 % Nuclear 12% 14% 7 % Surce: Energinet.dk In 2013, the General Fuel Mix Statement (default mix fr Denmark) has been used fr 94 % f all electricity sales, while 6 % have been sld as specific prducts based n GO. Table 2: Emissins t air in the declaratins f 2013, 2012, 2011 and 2010 Emissins t air Declaratin 2013 Declaratin 2012 Declaratin 2011 Declaratin 2010 CO CH 4 0,15 0,21 0,24 0,24 N 2O 0,005 0,005 0,005 0,006 Greenhuse Gas Emissins (CO 2equivalents) SO 2 0,06 0,08 0,07 0,07 NO x 0,25 0,30 0,32 0,34 CO ,15 0,15 0,15 NMVOC 0,03 0,04 0,05 0,05 Particles 0,02 0,01 0,01 0,01 Surce: Energinet.dk Table 3: Residuals in the declaratins f 2013, 2012, 2011 and 2010 Residuals Declaratin 2013 Declaratin 2012 Declaratin 2011 Declaratin 2010 Cal Fly Ash 16,4 12,9 15,6 14,5 Cal Slag 5,2 1,7 1,6 2,0 Desulfurisatin Prducts 7,4 5,7 6,1 5,8 Slag 5,9 6,3 7,4 7,2 Flue Gas Waste 0,9 1,0 1,3 1, /7
3 Summary f findings fr Denmark Residuals Declaratin 2013 Declaratin 2012 Declaratin 2011 Declaratin 2010 Bimass Ash 0,3 1,0 1,2 1,1 Radiactive waste [mg] 0,3 0,5 0,3 0,1 Surce: Energinet.dk Envirnmental Infrmatin Danish legal regulatins ask fr a cmprehensive list f attributes t be tracked fr disclsure. Besides standard parameters like fuel mix and related emissins f CO 2 and radiactive waste this als includes individual emissins f CO 2eq, CH 4, N 2 O, SO 2, NO x CO, NMVOC and particles as well as the residual prducts cal ash, cal slag, desulphurizatin prducts, waste slag, MSWI-ACP residues and bi ashes. 3 Energinet.dk has develped guidelines n hw the suppliers shuld calculate and prvide their custmers with disclsure infrmatin using explicit tracking, based n the direct emissins apprach. Based n a calculatin sheet, the suppliers can insert infrmatin abut the amunts f electricity delivered frm different energy surces based n GO and the relevant indicatrs are autmatically calculated. Fuel specific emissin factrs are prepared each year by Energinet.dk fr this purpse based n cllected data frm the Danish electricity generatin Suppliers Fuel-Mix Calculatins Befre 1 st f July f the next year electricity suppliers need t prvide disclsure infrmatin abut the previus year. The general labels (default mix) are prepared and prvided by Energinet.dk reflecting prductin statistics with crrectins fr physical imprt and exprt frm/t neighburing areas (see als descriptin f residual mix calculatin methdlgy abve). Electricity Trading Cmpanies must prvide Energinet.dk with an annual statement n the usage bth f cntract-based tracking infrmatin and GOs by 31 March f year X+1. The final Danish Residual Mix is published by Energinet.dk n the 1 st f June f year X+1. Fr disclsure f energy vlumes fr which n attributes are available based n cancelled GO r based n ther RTS, Denmark fllws the Residual Mix calculatin methdlgy prpsed by RE-DISS Acceptance f GOs As already referred, Denmark has a disclsure system in place which transpses the RES Directive, with an electrnic register fr the issuance, transfer and cancellatin f issued GO. The GO system implemented in Denmark is an EECS system. Fr recgnising GO, the Danish rules nly lk at the GO and nt the disclsure system in the prductin cuntry. GO based n EECS can be used directly fr disclsure in Denmark. The use f GO nt based n EECS needs t be apprved by Energinet.dk befre 31 March (which is the case f specific apprval). As the GO system in place is based n EECS the acceptance f freign GO fr disclsure are the nes set up in EECS prtcl. These criteria are part f Danish guidelines/secndary legislatin (f which the latest versin if frm 31st May 2011). These are transparently published in Denmark at: MILJOE/Miljedeklaratiner/Til-elhandlere/Sider/Individuel-deklaratin.aspx (in Danish nly). 3 Attributes which are specified directly in the legislatin (minimum requirements): CO2, CH 4, N 2O, SO 2, NO x, cal ash, cal slag, radiactive waste Other attributes which are added by Energinet.dk in accrdance with the legislatin: Residual prducts: CO2 equivalents, CO, NMVOC, particles, desulphurizatin prducts, waste slag, MSWI-ACP residues, bi ashes. 3/7
4 Summary f findings fr Denmark 1.2 Guarantees f Origin fr Electricity frm Renewable Energy Surces and High- Efficient Cgeneratin RES-GO System The RES-E GO scheme is peratinal already since 15 January Legal basis is the Executive Order n Guarantees f Origin fr RES electricity called Bekendtgørelse m prindelsesgaranti fr VEelektricitet (latest versin n 30 Nvember 2010). The natinal TSO Energinet.dk is appinted as Cmpetent Bdy. Detailed regulatin n GO has been laid ut in the Retningslinjer fr udstedelse af prindelsesgarantier fr VE-el (latest versin n 1 January 2012). RES-GO are issued fr vlumes f 1MWh fr net prductin n a mnthly basis. The GO are kept in the electrnic EECS registry where they can be transferred and redeemed by the accunt hlders wh gain access via lgin and passwrd. RES GO have a restricted lifetime f 12 mnths after the end f the prductin perid. All electricity prductin devices are subject t registratin in Denmark. This is carried ut by the Grid Cmpanies. A prductin device wner wishing t receive RES-GO has t fill ut a standard frm - Energinet.dk creates the prductin declaratin in the registry. All electricity prductin and exchange (imprt/exprt) is subject t measurement carried ut by the Grid Cmpany under regulatin frm Energinet.dk. The metered data are cllected in the Balance Settlement System, which is used when issuing. Bth plants and individual GO are specified by unique registratin numbers, all transactins are being tracked in the electrnic registry. RES-GO can be issued bth fr unsupprted as well as fr supprted electricity (market premium and feed-in). All GOs are freely transferable (bth linked and de-linked) within Denmark and with crss-brder transactins. N particular restrictins apply in terms f recgnitin f freign GO, but Energinet.dk can decide t cntact the issuing bdy t verify that the RES-GO is valid CHP-GO System CHP is f high relevance in Danish electricity prductin. 4 Natinal legislatin has been passed with the Executive Order n Guarantees f Origin fr high efficient CHP electricity called Bekendtgørelse m prindelsesgaranti fr elektricitet fra højeffektiv kraftvarmeprduktin (latest versin n 16 February 2007). Like fr RES-GO, the natinal TSO Energinet.dk is appinted by law as issuing bdy fr CHP-GO. The scheme is peratinal since July Detailed rules and prcedures are defined in the s-called Retningslinjer fr udstedelse af prindelsesgarantier fr electricitet fra højeffektiv kraftvarmeprduktin (latest versin n 1 January 2012). The scheme is based n EECS. Alternatively t issuing within the EECS registry, CHP-GO culd als be issued n paper with hlgram. Hwever, accrding t Danish regulatin this wuld take place fr units f MWh fr net prductin and fr perids f either 1, 3, 6 r 12 mnths. All electricity prducing devices are subject t registratin in Denmark. This is carried ut by the Grid Cmpanies. All electricity prductin and exchange (imprt/exprt) is subject t measurement carried ut by the Grid Cmpany under regulatin frm Energinet.dk. The metered data are cllected in the Balance Settlement System, which is used when issuing. As fr RES-GO, the nly purpse f a CHP-GO is disclsure, fr which cancellatin f the respective GO is mandatry. CHP can receive public supprt in frm f a fixed yearly subsidy, whereas supprted electricity still qualifies fr issuing f tradable GO. Bimass CHP is generally eligible fr bth types f GO. The plant wner has t chse t btain either a RES-GO r a CHP-GO as nly ne certificate can be issued fr the same amunt f electricity EECS The GO scheme is perated accrding t the EECS prvisins laid ut in the natinal Danish GO RES- E Certificates, RECS Certificates and Cg-GO Certificates Dmain Prtcl fr Denmark Versin 2.0 (published in December 2010). N ther means f imprt r exprt exist, fr Nn-EECS-Dmains exdmain cancellatins can apply. 4 In 2010 the CHP share f the Danish electricity prductin (excl. wind pwer) was 61 %. 4/7
5 Summary f findings fr Denmark GO Statistics RES-E GO statistics fr 2013 based n EECS: Imprts: 1,71 TWh Exprts: 8,79 TWh Issued: 12,69 TWh Expiry: 0,94 TWh 1.3 RES-E Supprt Schemes Denmark has a premium scheme in place fr RES-E. 5 All RES-GO can be used fr disclsure irrespective f whether supprt has been received r nt. Hwever, RES-GO fr supprted prductin are earmarked. 2 Prpsals fr Imprvement f the Tracking System The fllwing prpsals are made in accrdance with the RE-DISS Best Practice Recmmendatins 6 (BPR), which have been agreed by the Participating Dmains f the RE-DISS Prject. 2.1 Prpsals regarding Disclsure BPR [23] Other Reliable Tracking System shuld be defined based n criteria f added value, reliability and transparency; BPR [24] RTS can cmprise, where applicable: Hmgeneus disclsure mixes fr regulated market segments where n chice f supplier r different prducts exists, Supprt systems whse interactin with disclsure requires a certain allcatin f the attributes f supprted generatin (e.g. a pr-rata allcatin t all cnsumers in a cuntry where RES electricity is supprted by a feed-in tariff), Cntract Based Tracking (CBT) BPR [29] As CBT is allwed in Denmark it shuld be clearly regulated. BPR [30] CBT regulatins shuld ensure that: The rules f the tracking system are transparent and cmprehensive and are clearly understd by all participants in the system. Duble cunting f attributes and lss f disclsure infrmatin is minimized within the cntract based tracking scheme and als in the interactin f the cntract based tracking scheme t GO and ther RTS (if applicable). As a precnditin fr this, the CBT scheme shuld be able t prvide cmprehensive statistics abut the vlumes and types f electricity attributes which are tracked thrugh it. The relevant infrmatin fr disclsure purpses shuld be available in time t meet the timing requirements. Fr that purpse, Denmark shuld assure that accrding infrmatin n cntract based tracking is nt nly made available t Energinet.dk fr calculatin f the natinal residual mix, but that this infrmatin is als prvided t RE- DISS and cmpetent bdies f exprting cuntries in case that the cntract cvers an internatinal transactin. 5 6 Detailed regulatins fr this premium scheme depend n a variety f factrs such as energy surce and the grid cnnectin date. New wind turbines in general receive a fixed subsidy in additin t the market price fr 22,000 full lad hurs. Sme lder wind turbines receive a subsidy that is adjusted in relatin t the market price s that the ttal f the market price and the subsidy ensures wind turbine wners a fixed payment per 1 kwh. Versin 2.2, 11 August /7
6 Summary f findings fr Denmark 2.2 Prpsals regarding RE-GO and CHP-GO The RES-GO system in place in Denmark is fully in line with the RES-Directive and the almst in line with the RE-DISS BPR. T be cmpletely in line with the RE-DISS BPR the fllwing recmmendatins shuld be implemented: BPR [4] An extensin t this lifetime can be granted if a GO culd nt be issued fr mre than [six] mnths after the end f the prductin perid fr reasns which were nt fully under the cntrl f the plant peratr. In this case, the lifetime f the GO might be extended t [six] mnths after issuing the GO. BPR [11a] Extend the GO system beynd RES and CHP t all types f electricity generatin. BPR [11b] GOs shuld be issued fr all electricity prductin, unless an RTS applies fr that prductin, e.g. fr the disclsure f supprted electricity. BPR [11c] Cmpetent bdies shuld cnsider t make the use f GOs mandatry fr all electricity supplied t final cnsumers. BPR [15b] This GO shuld "ideally" cmbine the functinalities f a RES-GO and a high efficiency cgeneratin GO. 2.3 Prpsals regarding Acceptance f GO Regarding acceptance f GO the fllwing shuld be cnsidered: Within the rules set by the respective Directives, Denmark shuld cnsider establishing their criteria fr the acceptance f imprted GO fr purpses f disclsure: These criteria shuld address imprts at least frm all EU member states, ther members f the Eurpean Ecnmic Area (EEA) and Switzerland. The parties t the Energy Cmmunity Treaty shuld be cnsidered as well, as sn as GO imprts frm these cuntries becme relevant. The criteria shuld specify the electrnic interfaces, specifying data frmat and cntents f GO t be imprted, which the respective cuntry accepts fr imprts f GO (such as the EECS Hub and any ther interfaces accepted). Cnditins fr the recgnitin f GO frm ther cuntries shuld be that they were issued based n Art. 15 f Directive 2009/28/EC r cmpatible natinal legislatin, and that they meet the explicit requirements set in Art. 15, e.g. regarding the infrmatin cntent f the GO. The recgnitin f GO frm ther cuntries shuld be rejected in case that these cuntries have nt implemented an electricity disclsure system. The recgnitin f GO frm ther cuntries shuld be rejected in case that the cunty which has issued the GO r the cuntry which is exprting the GO have nt implemented adequate measures which effectively avid duble cunting f the attributes represented by the GO. Such adequate measures shuld ensure the exclusivity f the GO fr representing the attributes f the underlying electricity generatin, implement clear rules fr disclsure, establish a prper Residual Mix r equivalent measures, and ensure their actual use. Furthermre, the adequate measures shuld ensure that attributes f exprted GO are subtracted frm the Residual Mix f the exprting cuntry and cannt be used fr disclsure at any time in the issuing r the exprting cuntry by explicit mechanisms, unless the GO is re-imprted and cancelled there. Regarding acceptance f GO the fllwing BPR shuld be implemented: BPR [21] Within the rules set by the respective Directives, Denmark shuld cnsider their criteria fr the acceptance f imprted GOs fr purpses f disclsure. These criteria shuld address imprts at least frm all EU member states, ther members f the Eurpean Ecnmic Area (EEA) and Switzerland. The parties t the Energy Cmmunity Treaty shuld be cnsidered as well, as sn as GO imprts frm these cuntries becme relevant. The criteria shuld specify the electrnic interfaces, specifying data frmat and cntents f GOs t be imprted, which the respective cuntry accepts fr imprts f GOs (such as the EECS Hub and any ther interfaces accepted). 6/7
7 Summary f findings fr Denmark 2.4 Further prpsals regarding Disclsure BPR [39b] Suppliers ffering tw r mre prducts which are differentiated regarding the rigin f the energy shuld be required t give prduct-related disclsure infrmatin t all their custmers, including thse which are buying the default remaining prduct f the supplier. In Denmark nly prduct mix is disclsed, but suppliers shuld als disclsed the cmpany mix tgether with the prduct mix. 2.5 Matrix f disclsure related prblems and cuntry-specific prpsals Prblem Cuntry-specific prpsal Pssible duble cunting in different explicit tracking instruments BPRs: [11a], [11b], [11c], [23], [24], [29], [30] Duble cunting f attributes in implicit tracking mechanisms BPRs: [11a], [11b], [11c], [23], [24], [29], [30] Duble cunting within individual supplier's prtfli BPRs: [39b] Lss f disclsure infrmatin BPRs: [11a], [15b] Intransparency fr cnsumers BPRs: [11a], [11b], [11c], [23], [39b] Leakage f attributes and/r arbitrage Unintended market barriers BPR: [4], [11b], [11c], [21] Disclaimer: The sle respnsibility fr the cntent f this dcument lies with the authrs. It des nt necessarily reflect the pinin f the Eurpean Unin. Neither the EACI nr the Eurpean Cmmissin is respnsible fr any use that may be made f the infrmatin cntained therein. 7/7
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