By Martin Lidegaard, Guest Blogger on Jun 26, 2013 at 4:13 pm
President Obama’s Climate Action Plan is promising. Curbing global warming will demand serious action from all of us. Needless to say, US leadership makes a great difference. Denmark is a mouse compared to the US elephant, but our experience proves that the President’s Plan is indeed possible and can be profitable. Over the past 30 years, the Danish economy has grown steadily, while energy efficiency has kept our energy consumption at the same level in absolute terms.
Lower Greenhouse Gases In The Coal Sector
The US will impose regulations for new and existing coal-fired power plants. That is good news and absolutely critical if the world is to stay below a 2 degree Celsius rise in global temperature, according to the International Energy Agency (IEA). IEA proposes limitations on inefficient coal-fired power plants. In Denmark we will phase out coal completely and move towards a fossil-free power and heating system by 2035. This means that no new coal plants will be built and existing capacity is being retrofitted to biomass and other sources.
More Renewable Energy In The Mix
The US will use federal lands for renewable energy aiming for an additional 10,000 MW by 2020. That is good news as well. Denmark has long had wind as a major part of the power mix and with the recent national Energy Agreement half of our electricity consumption will be supplied by wind in 2020 while we still have electricity prices – excl. VAT and energy tax but incl. Public Service Obligations (PSO) for supporting renewables – below the European average. Wind power is a good long term investment because the marginal price pr kWh is next to nothing once the turbines are up and the blades are spinning. With a free power market wind is actually driving down power prices. And renewable energy delivers local jobs and economic growth.

