FROM POLICY TO ACTION - INSIDE THIS WHITE PAPER - State of Green
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White papers for a green transition
FROM POLICY
TO ACTION
Implementation of the European Energy Union
INSIDE THIS WHITE PAPER
Clean Energy Sources
Energy Efficiency
Sustainable Heating & Cooling
Sustainable Transportation
Energy Markets across Borders
2
FROM POLICY TO ACTION
Implementation of European Energy Union
Version 1.0
Printed December 2018
Front page photo
Illustration on the integration of renewable energy
and energy efficiency in the energy system
Credit: Henrik W. Sivertsen
Editor in chief
State of Green
Technical Editors
Danish Energy Association: Jørgen Skovmose Madsen, jsm@danskenergi.dk
Confederation of Danish Industries: Lars Bach, labj@di.dk
Danish Agriculture & Food Council: Kasper Bruun Knudsen, kabk@lf.dk
Danish Energy Agency: Mikkel Sørensen, mis@ens.dk
Danish Wind Industry Association: Camilla Holbech, ch@windpower.org
Contributors
Arla: Peter Engelbrektsen, peter.b.engelbrektsen@arlafoods.com
Aalborg Portland: Henriette Nikolajsen, henriette.nikolajsen@aalborgportland.com
BetterHome: Niels Kåre Bruun,nkb@betterhome.today
Best Green: Simon Steen Kristensen, simk@bestgreen.dk
City of Copenhagen: Jeppe Grønholt-Pedersen, jgp@kk.dk
Clever: Henrik Skyggebjerg, hs@clever.dk
COWI: Christian Mou, mou@cowi.com
DAKA: Erik Mansig, efm@daka.dk
Dall Energy: Anders Bo Laugen, abl@dallenergy.com
Danish Biogas Association: Bruno Sander Nielsen, bsn@biogas.dk
E-ferry: Trine Heinemann, THE@aeroekommune.dk
Energinet: Peter Bruhn, pbu@energinet.dk
European Energy: Joachim Steenstrup, jst@europeanenergy.dk
Helsingør: Thomas Hag, tha@fh.dk
HOFOR: Sannah Grüner, sagr@hofor.dk
Radius: Poul Brath, POBRA@radiuselnet.dk
Rockwool: Susanne Dyrbøl, susanne.dyrboel@rockwool.com
Rødkærsbro District Heating: Frede Hansen, fredehansen@hotmail.com
Siemens: Lars Nielsen, lars.nielsen@siemens.com
Vattenfall: Esben Baltzer Nielsen, esbenbaltzer.nielsen@vattenfall.com
Vestas: Anders Riis, ANPRR@vestas.com
Ørsted: Tom Lehn-Christiansen, tomlc@orsted.dk
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Copyright State of Green 2018
The Energy Union – from paper to power 3
THE ENERGY UNION
– FROM PAPER TO POWER
The creation of the European Energy Union is a challenging
and necessary ambition if Europe is to develop its position as
a competitive, low carbon market. To achieve this, multiple
technologies need to come into play, and – perhaps most
importantly – we need to pursue integration of solutions
across the different pillars of the energy sector.
By Maroš Šefcovic,
Vice President, European Commission,
responsible for the Energy Union
In 2014 the European Union set sail on a EU co-legislators - the European Parliament and sectors. Now it is up to Member States
journey towards a resilient Energy Union and the Council - that together, we will and industry to take the final steps in deliv-
with a forward-looking climate change conclude all negotiations prior to the end of ering on these objectives.
policy. By May 2018, one year before the end our mandate.
of our mandate, the European Commission This white paper offers several concrete
has tabled the necessary legislation to Afterwards, a new and equally important solutions for Member States to boost both
enable this journey in its entirety. This journey will begin, as the Member States renewable energy and energy efficiency.
included vast proposals in order to overhaul will implement what has been agreed at the Furthermore, it dives into some of the
our electricity markets, which allow for European level. The ambitious European numerous possibilities to link and integrate
more renewable energy, boost energy effi- targets for climate, renewable energy and different parts of the energy system in the
ciency, ensure security of gas and electricity energy efficiency, combined with well-func- pursuit of a decarbonised and competitive
supplies and more. tioning markets, will be met through a com- European economy. I am sure that it can
bination of national and European measures serve as an inspiration to ensure a proper
The journey has, at times, been stormy, and supported by a robust governance and ambitious completion of the Energy
but the ships have remained on course. system. A multitude of technologies and Union.
Some have already reached shore, as files solutions will need to come into play to
on, for instance, renewable energy, energy reach the objectives of the Energy Union.
efficiency, buildings and governance were
agreed, while the last voyages for the files From the outset, the Energy Union has been
on electricity market design will take place designed to break down silos and ensure an
in the coming months. I have full faith in the integrated approach across technologies
4 ABOUT THIS WHITE PAPER
ABOUT THIS WHITE PAPER
The European energy challenge, targets and implementation
When looking at the global climate challenges, the energy system is one of the biggest obstacles towards
a carbon-free and net-zero future. The European Union has set ambitious objectives for an energy
system, which integrates renewable energy and energy efficiency, as well as enabling a well-function-
ing energy market. These elements in combination can support a robust and flexible energy system,
which is vital towards a clean energy system. The targets have been set, and the next important step is
for all member states to implement the ambitions locally. In this implementation real-life, competitive
and scalable solutions are vital to share and show toward an effective transition.
Undiscovered potential in existing technologies
When looking at the energy challenge today, it is evident, that many of the solutions, which are needed
already exists. Furthermore, these solutions have over the last decades through innovative break-
throughs become competitive in a way that a green transition of the energy system can be cost-effi-
cient. This is exemplified by the clean energy sources of offshore wind, onshore wind, solar, biomass and
biogas energy technologies.
A transition of the energy system that relies solely on renewable energy also requires a focus on the
total amount of energy we consume. Both in industry and at the end user, energy efficiency measures
exists which can achieve large savings in energy, costs and CO2 emissions.
Integrated energy systems
The integration of both renewable energy and energy efficiency measures in the European energy
systems is pivotal for the transportation, heating and cooling sectors. These sectors are some of the
most energy intensive, and are all still heavily reliant on fossil fuels. Therefore, this White Paper inves-
tigates existing solutions in electric mobility, biofuels, district energy and individual heating solutions.
Lastly, allowing for energy markets to be connected both domestically and across borders is key to
enable a larger integration of renewables, as well as to ensure increased flexibility and security.
The next steps
It is clear that there still lies many obstacles ahead in order to reach the objectives of the European
Energy Union. By showcasing existing solutions and technologies, this publication seeks to support the
dialogue with an action-oriented approach, which hopefully can contribute to a green transition of the
European energy systems.
INDEX 5
INDEX
The European Energy Union will secure a sustainable energy system.............................. 6-7
Energy system integration ............................................................................................................................................ 8
Long-term energy policies enabling the green transition...................................................................................... 9
Unleashing the potential of clean energy domestically....................................................... 10
The world’s largest offshore wind farm.................................................................................................................... 10
Biogas produced from manure and residues........................................................................................................... 12
Onshore wind supplying clean electricity production........................................................................................... 12
Developing the next generation of solar panels..................................................................................................... 13
Helsingør’s switch to renewable heating................................................................................................................. 13
Unlocking the potential of energy efficiency ....................................................................... 14
Hospital reducing energy in EPC project................................................................................................................... 15
A home-owner centric one-stop-shop model for energy renovation............................................................... 16
Use of surplus heat has led to substantial energy reductions at Danfoss....................................................... 17
Arla Rødkærsbro - dairy and energy producer........................................................................................................ 17
Integrated Energy Systems................................................................................................ 18-19
Hybrid solutions allowing for flexible energy systems......................................................................................... 19
Sustainable heating and cooling................................................................................20-21
Smart district heating in Copenhagen with heat pumps............................................................................ 22
Award-winning heating and cooling ‘as-a-service’...................................................................................... 22
Surplus heat from industry supplying heating to citizens......................................................................... 23
District heating supplying clean energy......................................................................................................... 23
Sustainable transportation........................................................................................24-25
Electric vehicles moving Europe.......................................................................................................................26
Green public transport for growing urban populations..............................................................................26
Biodiesel as a circular solution to transportation......................................................................................... 27
Electrical zero-emission passenger ferry....................................................................................................... 27
Energy markets and cooperation.................................................................................... 28
Cross border connections to enable flexible markets.................................................................................29
Storage solutions for a renewable electricity grid.......................................................................................29
About....................................................................................................................................30-31
6 The European Energy Union will secure a sustainable energy system
THE EUROPEAN ENERGY UNION
WILL SECURE A SUSTAINABLE
ENERGY SYSTEM
Goals are set, now the time is for EU and Member States to deliver
Since 2014, decision makers in the European Union have worked intensively to secure an
agreement on a futureproof European rule book which sets the path towards a secure,
competitive and clean energy system. It is a concrete regulatory framework that
provides the operational steps necessary to meet agreed political objectives.
Across the globe, societies, governments, and businesses. To enable this, the Energy in order to drive the necessary solutions
private actors and citizens are trying to Union is based on five main pillars: forward.
solve the challenges energy systems of the
future will bring. The European Union is a • ecurity, solidarity and trust
S In this White Paper, the foundation of the
frontrunner within this field and is setting • A fully integrated internal energy market low-carbon transition of the European
objectives that will achieve a greener future • Energy efficiency energy system is built upon three elements:
through climate strategies and clearly • Climate action – decarbonising renewable energy, energy efficiency and
defined objectives in the energy sphere. the economy system integration. These elements are
Since the Energy Union strategy was • Research, innovation and covered in the Energy Union, which seeks to
launched in February 2015, the Commission competitiveness ensure a cost-effective integration of clean
has published several regulatory packages energy sources, promotion of energy effi-
to ensure the Energy Union is achieved. All of the above are vital to ensure the ciency and the integration across sectors
objectives of the Energy Union. The core and across borders.
Both the so-called “Gas Package” from of the Energy Union is cooperation and
February 2016 and the “Climate Package” coordination between member states A net-zero-emission economy in 2050 at
from July 2016 made significant changes to supplemented by firm action within each the latest implies that clean energy sources
the regulatory landscape of the European individual member state. The implemen- such as wind, solar, bio and others will be
energy sector. With the “Clean Energy tation of the Energy Union is deemed as the primary fuels to meet energy demand.
Package” and the “Clean Mobility Package" the next important step. Currently, efforts This requires a strong political framework,
,both of which are from November 2017, it are centred around mobilising the member coupled with an innovative private sector.
is fair to say that the Energy Union is indeed states and the societies within represented Today, renewables are able to compete with
a project that cuts across the traditional by citizens, cities, rural areas, the private fossil fuels in many scenarios, making them
sectors of the energy sector. sector, companies, researchers and not not only the greenest, but also the most
least national politicians and policy makers. cost-effective choice.
The Energy Union seeks to provide secure, These actors will need to take ownership
affordable and clean energy for EU citizens and responsibility of the Energy Union
The European Energy Union will secure a sustainable energy system 7
A stable, competitive and green energy The green transition in the EU. Boosting domestic energy effi-
system implies the efficient use of energy creating jobs and growth ciency investments will create new business
resources as a method to increase the The renewables sector is a driver of growth opportunities for European companies such
utilisation of energy. This has a positive and job creation. 1.4 million people were as construction firms and manufacturers
impact on the CO2 footprint, but also the employed in the renewables sector in 2016, of energy-using or transport equipment,
bottom-line, as it can reduce marginal costs generating a turnover of EUR 149 billion. which is likely to have a positive impact on
for industry and citizens. The transition of the energy sector to one overall economic growth in Europe.
powered primarily by renewables will not
Lastly, the integration of the energy system only result in a more sustainable energy Denmark has shown that many of the
is vital on multiple stages. In terms of energy system, but also ensure green growth that solutions that we need to implement in the
markets, connecting your country with your will secure a just transition and long-term Energy Union already exist today. However,
neighbours enables a more stable integra- socioeconomic benefits. Gross employment there is still a long way to go if we are to
tion of clean energy, as surplus renewable in the provision of energy efficiency goods reach the 2050 objective to fully decarbon-
production can be sold to neighbours to help and services sold in the EU28 member ise EU’s economy. The cases, solutions and
meet their energy demands. Furthermore, states in 2010 amounted to approximately 1 learnings presented on the next pages will
the heating and cooling sectors, as well as million jobs. Inclusion of activities that have hopefully further qualify how the transition
the transport sector, are facing an urgent the potential to realise energy savings, and implementation across both European
need to transform their fuel input, which but are not purchased primarily for that member states as well as other internation-
will allow them to be powered by electricity purpose, would increase the job account to al actors working towards a low-carbon and
and clean energy sources. 2.4 million jobs. That would amount to ap- green economy can be achieved.
proximately 1 percent of total employment
EU ENERGY UNION OBJECTIVES FOR 2030
• At least 40 percent reduction in greenhouse gas emissions compared to 1990 levels
• At least 32 percent share of renewable energy consumption
• Improvement of energy efficiency at EU level of at least 32.5 percent
• The revised Energy Performance of Buildings Directive with an increased renovation rate and smarter buildings
• At least 14 percent of the transport fuel of every EU country come from renewable sources
• Increase the share of renewables in the heating sector by 1.3 percentage points a year
• Develop further sustainability criteria for biomass
• Support the completion of the internal energy market by achieving the existing electricity interconnection target of 10 percent by
2020, with a view to reaching 15 percent by 2030
8 The European Energy Union will secure a sustainable energy system
Energy system integration is about tapping into the
combined strength of these energy systems and
maximizing the value of every unit of energy we use
Integration
Energy systems integration is an Energy system integration
approach to solving big energy brings the whole energy
challenges that explores ways system together providing
for energy systems to work more greater flexibility and more
efficiently on their own Low-carbon energy systems diverse energy sources.
and with each other.
Digitalisation
Balancing supply and demand
Long-term perspectives
Consumer access
Flexibility of energy sources
Competitive market based solutions
Electrification
Energy access and security
Renewable Energy
energy efficiency
While most energy sources, delivery systems and
demand-response programs are treated as stand-alone
technologies today, energy system integration examines
how they can optimally work together as a system.
The European Energy Union will secure a sustainable energy system 9
DANISH TARGETS AND MILESTONES
TOWARDS THE GREEN TRANSITION
• Becoming a net-zero emission society • Energy and climate research will receive a cash injection
with a target of DKK 1 billion (EUR 134 million) by 2024
• Independent of fossil fuels by 2050
• DKK 500 million (EUR 67 million) is allocated to green
• Phasing out coal in the Danish electricity transportation in 2020-2024, in order to enhance green
production by 2030 mobility and transportation
• 50 percent renewable energy in the total • A modernisation of the heating sector, where both the
energy mix by 2030 district heating sector and the consumers can freely
decide future investments, resulting in cheap heating
• Renewable energy: Build three new offshore wind farms for both companies and consumers. Electrification
by 2030 with a total of minimum 2400 MW as well as achieved through relaxation in electricity and electric
expand the production of green biogas heating taxes
• Introduce a competitive tender process, where different • From 2021 to 2024, DKK 100 million (EUR 67 million)
technologies such as onshore wind turbines and solar annually will be allocated to a market-based grant pool
cells can compete on delivering green electricity at the focused on energy savings
lowest price
Long-term energy policies enabling the green transition setting and achieving ambitious long-term targets. This drives and
The Danish Energy Model has shown that it is possible to sustain enables investments in green technologies and their deployment.
economic growth and a high standard of living while reducing In doing so, it is possible to achieve a green transition of the energy
fossil fuel dependency and mitigating climate change. This has system in a cost-effective way. This is due to the fact that the
been achieved through persistent and active energy policies with political structure allows multiple actors to engage, who can then
ambitious renewable energy and energy efficiency objectives that develop innovative and cheaper solutions. Green technologies then
have been supplemented with efficient infrastructures, regulations become not only the most sustainable choice, but also the most
and forward looking R&D programmes. Over the last 40 years, the cost-effective choice, where they, in many cases, outcompete fossil
Danish political framework on energy and climate has been char- fuels.
acterised by an ambitious, long-term outlook and broad political
support. This was also evident on June 29 2018, where the Danish The Danish case seeks to stimulate and inspire low-carbon growth
government signed an energy agreement with the support of all the globally. For example, Denmark has demonstrated that energy
sitting parties in the Danish parliament. The agreement reaffirms consumption and carbon emissions can be radically improved while
and strengthens Denmark's climate and energy goals leading up to maintaining a sound and resilient economy. The next steps towards
2030. the green transition and green growth are expected to be founded
on strong international cooperation and partnerships.
Political agreements on energy have been achieved with broad
consensus in the Danish Parliament, where they serve as a basis for Danish Ministry for Energy, Utility and Climate
10 Unleashing the power of clean energy domestically
UNLEASHING THE POWER OF
CLEAN ENERGY DOMESTICALLY
Over the last few years, wind, solar and bioenergy have become the preferred new generation
technology as the energy sector is being expanded and renewed across Europe.
Since the 1990s, the consumption of energy generation technologies as the energy Biomass and biogas plants can integrate
imports in the EU has been increasing sector is being expanded and renewed waste and residues from European agri-
and in 2016 the percentage reached 53.6 across Europe. culture, industry, household and forestry
percent. This equates to a cost of more than sectors to contribute further to a stable
EUR 1 billion per day for European citizens. Competitive clean energy power and heat supply. Apart from produc-
Trading energy across borders is not in When built on optimal sites and in optimal ing energy, biogas has the simultaneous
itself a problem, but history has shown that conditions, both offshore wind, onshore benefits of improving the environmental
being too dependent on foreign energy wind and solar power are now able to and climate foot print in agriculture. The
supplies can make regions vulnerable to be established without subsidies. As development of biogas production is crucial
both economic and political developments technological solutions develop, and the in terms of replacing natural gas in Europe.
that are outside of their control. It is there- functioning of energy and carbon markets With recently adopted common rules in the
fore natural that the EU aims to minimise improve, this tendency will continue to renewables directive, this will be done in a
its import dependency and diversify import spread. The expansion of competitive sustainable manner across Europe.
routes. tendering for renewable energy to cover
the entire scope of the projects could help The potential for renewable energy is
Recent years have seen a significant drop reduce costs further. tremendous. In 2018, the International
in costs for renewable energy. This is Renewable Energy Agency (IRENA) esti-
particularly evident in the case of wind Intelligent design of competitive tender mated that renewables could realistically
and solar energy, both of which provide a processes when it comes to volumes, meet 34 percent of energy consumption
cheap, clean and domestic alternative to scope, window of establishment etc. will in Europe in 2030, compared to 17 percent
energy imports. Over the last few years, help underscore the movement towards in 2015. Other projections are even more
investments in wind, solar and bioenergy zero-subsidy projects. optimistic, which will be reflected on in this
have exceeded investment in conventional chapter.
Photo: Matthias Ibeler
The world’s largest offshore wind farm industry. In Europe, electricity from new offshore wind farms can
In September 2018, the 659MW Walney Extension was inaugurated now compete with coal, gas and nuclear power plants. This makes
in the Irish Sea. It is the world’s largest offshore wind farm, generat- offshore wind a feasible alternative, as Europe is phasing out coal to
ing enough energy to power nearly 600,000 UK homes annually. It is reduce fossil dependence and limit climate change.
also the first project consisting of wind turbines from two different
manufacturers, MHI Vestas and Siemens Gamesa. Today, more than 16GW offshore wind is installed in Europe. Studies
reveal the economically viable potential exceeds 600GW – enough
Completed on time and on budget, the Walney Extension is a testa- to match the production capacity of every European coal fired power
ment to the incredible development that offshore wind energy has plant – twice.
undergone since the first pioneering projects in the beginning of the Ørsted
1990s. The cost of energy has diminished with the maturation of theUnleashing the power of clean energy domestically 11
12 Unleashing the power of clean energy domestically
Biogas produced from manure and residues The plant has gradually expanded, and in 2017 it handled 450,000
The Danish biogas plant Linko Gas was established in 1992 by 60 tonnes of livestock manure and residues (55 percent cattle slurry
local farmers who still own the plant in a co-operative. The main and 25 percent pig slurry). In 2018, Linkogas started a new expansion
objective is as a service facility to handle the livestock manure from including a new organic line, which brings the capacity up to 600,000
the farmers. The process improves the fertiliser value and reduce tonnes per year. In the first 25 years the biogas was co-generated to
the environmental and climate footprint due to reduced leaching of electricity to the grid and heat to the local district heating system. In
nitrates and reduced emissions of greenhouse gases. Furthermore, 2017, Linkogas established an upgrading plant operated by Ørsted
the smell from the manure is reduced. Linkogas also handles organic and the biogas is now injected into the national gas grid.
residues from food industry and source separated household waste
bringing the nutrients back in a circular economy. Linko Gas
Onshore wind supplying clean electricity production wind speed of 8 metres per second, the area is perfect for energy
Denmark has been a first mover, when it comes to capturing wind production. When 35 old turbines were replaced by 22 modern,
resources for electricity production. Technology has improved highly efficient turbines, the energy production more than tripled.
tremendously since the first modern day turbines were developed. Today the wind farm can cover the annual electricity consumption of
Great potential exists for repowering the old sites, which will reduce 64,000 Danish households, making it one of the largest in Denmark
the number of turbines, lessen the impact on the surrounding area as measured by energy production.
and at the same time increase the production of fossil free energy. Jammerbugt Kommune,
This is the case with Vattenfall’s Klim Wind Farm. With an average local landowners, Siemens and Vattenfall
Photo: Nordhagen KommunikationUnleashing the power of clean energy domestically 13
Developing the next generation of solar panels panel. Researchers and employees from European Energy will test
The price of solar energy has dropped approximately 90% over the bifacial panels in combination with tracking (where solar panels
past 10 years. It is now cheaper than conventional power plants in automatically move to follow the sun throughout the day) and inter-
many markets. Further improvements to both the price and perfor- action with different storage technologies.
mance of solar energy is expected to continue. Danish developer
European Energy recently opened a first of its kind test centre in European Energy estimate that the research can improve the
Europe. The centre is built on the campus of the Technical University harvest of solar energy by up to 20% using only off-the-shelf
of Denmark, where it will test the latest solar power technologies. solar modules and structures. The new test centre will support the
continued development of solar energy as a key technology in the
This includes bifacial solar cells, which, in contrast to the traditional future energy system.
monofacial solar cells, harvest solar energy from both sides of the European Energy
Helsingør’s switch to renewable heating Sustainable biomass is a CO2-neutral fuel, primarily meaning that the
In the municipality of Helsingør, the city’s combined heat and power CO2 emitted from the incineration of the wood chips is absorbed by
plant is undergoing a renewal process, converting from one that runs reforested woods. When finished by the end of 2018, the moderni-
on natural gas to one that uses wood chips, which will primarily be sation of the plant will lead to an annual reduction in CO2 emissions of
sourced locally. The plant adheres to the requirements laid out in the up to by 80,000 tonnes. This translates into an annual reduction in
voluntary industry agreement between Danish Energy Association emissions from district heating production in Helsingør by up to 88
and the Danish District Heating Association, guaranteeing that heat percent, including emissions stemming from the domestic transpor-
and power generation will be based on sustainable biomass. It will tation of the wood chips used for production.
further adhere to recently adopted sustainability criteria adopted at
EU level in the Renewables Directive. Forsyning Helsingør14 Unlocking the potential of energy efficiency
UNLOCKING THE POTENTIAL
OF ENERGY EFFICIENCY
Building an energy efficient EU Energy Union
Energy efficiency is a core part of the EU Energy Union. A green and competitive
European economy will rely on the cost-efficient utilisation of the huge
potential that lies within energy efficiency measures.
The importance of energy efficiency as a key can deliver 35 percent of the cumulative CO2 These investments are well in line with the
instrument towards a low-carbon economy savings required by 2050 to meet the Paris fact that IEA (2014) estimates that with the
has been stated in the European Clean Agreement’s temperature goals, according current pathway, two thirds of the global
Energy Package, where EU has increased to the IEA (2018). energy efficiency potential will remain
the European energy efficiency target from untapped in 2035. In buildings, less than 20
at least 27 percent to at least 32.5 percent Still huge global potential in percent of the economically viable potential
in 2030. A more efficient use of energy will increasing energy efficiency will be achieved. Similarly, less than 40
allow Europeans to lower their energy bills The global investment in energy efficiency percent in the transport sector and less
and help protect the environment. Energy reveals an upward looking trend and the than 45 percent in industry will be achieved.
efficiency should be increased at all stages IEA (2017) has calculated that investments Energy intensity differs significantly across
of the energy chain, from generation to final in energy efficiency investments amounted sectors, as well as across EU member states
consumption. to to EUR 202 billion in 2016. Consequently, borders. The increasing global focus on
energy efficiency investments represent energy efficiency, together with strong
Energy efficiency will deliver 13.6 percent of the EUR 1.49 trillion cases of cost effective energy efficiency
on climate targets invested across the entire energy market. projects will pave the way for further efforts
The EU has agreed on the “energy ef- Investments in efficient buildings account and investments.
ficiency first” principle. Consequently, for 58 percent of the investments in energy
energy efficiency improvements need to efficiency, whereas the transport sector This chapter shows a selection of innovative
be realised whenever they are more cost comprises 26 percent and the industry 16 and energy efficient solutions.
effective than equivalent supply side percent.
solutions. End use energy efficiency aloneUnlocking the potential of energy efficiency 15
Hospital reducing energy in EPC project building management, energy management, intelligent controlled
Hvidovre Hospital in Copenhagen has an objective of reducing total bed rooms, photo voltage, turbocor cooling, ventilation, water
energy consumption by 15 percent and already by 2020, 10 percent savings and freezer technology. With an investment of EUR 24
of the hospital’s energy needs should come from renewable sources. million, this EPC project is one of the largest of its kind in Europe.
Among the measures utilised to reach this target is to renovate the Siemens is guaranteeing the significant energy savings – where
technical facilities in the 245,000 m² buildings and to expand the energy expanded on heating is reduced by 41 percent, electricity by
capacity of the hospital’s own renewable energy sources. 23 percent and water by 7 percent – this provides the project with
a payback time of 10 years. The project won the European Energy
This is being implemented by Siemens as an Energy Performance Service Project in 2017.
Contracting (EPC) project that covers technologies such as lighting, Siemens and Hvidovre Hospital16 Unlocking the potential of energy efficiency
A home-owner centric one-stop-shop model solutions based on specific preferences, covering energy improve-
for energy renovation ments on the building envelope, heating, cooling, ventilation and
Renovating buildings to reduce energy demand is a key tool to hot water systems. The process is holistically planned; optimising
combat climate change. Across the planet more than 40 percent of the value chain by minimising efficiency losses, miscommunication
greenhouse gas emissions are derived from energy consumption and avoiding lock-in effects.
in buildings. Reaching the Paris Agreement’s goals requires urgent
action to avoid further lock in to inefficient and climate vulnerable As facilitator, BetterHome is transforming a complex and fragment-
buildings and homes. This will require upscaled investment in reno- ed renovation process into a simple and straightforward procedure
vating existing building stock. for the home-owner, thereby ensuring a reliable and smooth
process. For the installers, BetterHome clusters suitable projects
Europe faces a profound challenge – to triple the current renovation and helps them to better structure the renovation process.
rate in order to meet its climate and energy goals. For building
owners, the renovation process can be a hassle, shaped by the The figures show the success of the model. BetterHome started in
ambiguity of implementation measures. Uncertainty about how to Denmark in 2014 as an initiative by four leading Danish companies
tackle the renovation process is one of the reasons why the annual Danfoss, Grundfos, ROCKWOOL and VELUX and was already profita-
renovation rate continues to linger at around 1 percent and private ble after just 3 years. Today, they have a network of more than 3,500
investments remain limited. Achieving the full market potential of installers, seven banks and three utilities. Initially, the main focus for
renovation calls for a paradigm shift, where a more service-oriented the BetterHome model was deep renovation projects of single-fam-
supply side together with a deeper awareness on the demand side ily houses, but the business model is now being redeveloped to
play a key role. support renovation projects of multifamily buildings as well. For sin-
gle-family houses the average project investment is approximately
Facilitating a simple renovation process EUR 70,000 with energy savings of approximately 30 - 70 percent.
BetterHome delivers a comprehensive, digital one-stop-shop
service in partnership with key players in the construction value BetterHome, ROCKWOOL, Danfoss, Grundfos
chain, including banks. The home-owner is offered tailor-madeUnlocking the potential of energy efficiency 17
Use of surplus heat has led to substantial heating on four 500 kW heat pumps reduces annual gas consump-
energy reductions at Danfoss tion by 1.2 million m³, shaving off 2,700 tonnes of CO₂ emissions and
For years, Danfoss has worked to reduce its factories' global energy generating an annual saving of DKK 3.4 million (EUR 455,600). This
consumption. To that end, Danfoss and COWI entered into a close project is a classic case of the green transition in practice, where
collaboration to review energy saving potentials. Danfoss factories fossil fuels are replaced with green electricity. In the longer term,
typically require a lot of heat and generate vast amounts of surplus a collaboration between Danfoss and the local district heating
heat. Therefore, an energy saving initiative was implemented, company in Nordborg could result in the recovery and export of
focusing on heat pumps and on producing central heating using the another 3,700 MWh of surplus heat, shaving off an additional 0.4
low-temperature surplus heat. million m³ of gas and 900 tonnes of CO₂.
The initiative includes a heat recovery project at Danfoss’ main site Danfoss , COWI, Johnson Controls
in Nordborg, Denmark. Coproduction of cooling water and central
Arla Rødkærsbro - Dairy and energy producer town of Rødkærsbro. Arla and Rødkærsbro district heating plant es-
The Arla dairy in Rødkærsbro in Denmark is an example of true tablished 2.5 km pipelines to transport excess heat from the dairy’s
circularity. The dairy is one of the largest producers of mozzarella biogas motor and the hot wastewater. This delivers district heat for
in Europe and is also an energy producer. In 2017, the dairy has 600 local citizens.
restructured from labour-intensive to a highly energy efficient and
automated dairy. That way the cattle farms create milk, biogas and electricity for the
dairy, and the resulting excess heat is then used to produce district
The dairy buys biogas based on manure, which is produced at two heating for the local town.
neighbouring cattle farms that also delivers milk to the dairy. The Arla Foods
surplus heat from biogas usage and wastewater from the dairy is Rødkærsbro District Heating
utilised for sustainable and cheap heat for the district heating in18 Integrated Energy Systems
INTEGRATED ENERGY SYSTEMS
Integration of clean energy and energy efficiency across the system
In order to achieve the goals of the European Energy Union, both renewable
energy and energy efficiency need to be integrated across the energy system.
This includes the energy intensive heavy sectors as transportation and heating &
cooling, as well an enabling an energy market across borders.
Producing clean energy and using our is generated from renewable energy. In The sections to come will investigate the
energy more wisely through efficiency the transport sector, oil supplies about potentials in these sectors as well as show-
measures are both vital pillars of the future 94 percent of all energy used to power casing some of the solutions we see already
energy system. However, the third and European cars, trucks, ships and planes. today. Lastly, the third section will underline
equally important pillar is about integrating These sectors rely on large industrial, the importance of integrating the energy
these elements in the energy system. Some infrastructure and technology investments system not only within the member states,
of the sectors that are most challenged in in order to fully reach the potentials as well but also across borders. Both challenges,
reaching the European targets are transpor- as providing access for all citizens. but most of all solutions will be presented
tation as well as heating & cooling. In the EU in order to better comprehend the possible
only 16 percent of the heating and cooling implementation paths towards 2030.Integrated Energy Systems 19
Photo: Vestas wind systems
Hybrid solutions allowing for flexible energy systems harnessed and monetised, connecting energy with value. In Greece,
When looking at integrated energy systems, the grid is a key chal- the Louzes Wind Power Plant was established in 2008, featuring 24
lenge. Both grid stability, as well as market fluctuations and demand MW of wind power capacity. In 2012, a 1 MW solar power plant was
patterns, require innovative solutions, which can integrate multiple integrated with the existing wind power plant, becoming a hybrid
renewable energy sources to adapt and mitigate to the challenges power plant through sharing interconnection facilities. MW-scale
of the future energy system. grid connected solutions such as this that diversify energy genera-
tion to power plants enable you to be more competitive by enhancing
Working closely with customers, Vestas has developed different the utilisation of resources relative to plant capacity as well as being
hybrid power plant solutions covering the full project’s value chain, able to deliver a consistent, predictable supply of energy over time.
from siting to construction, grid connection and service.
Hybrid power plant solutions can change the way in which energy is Vestas Wind Systems20 Sustainable heating and cooling
SUSTAINABLE HEATING
AND COOLING
Creating a green transition of the heating and cooling sector
Heating and cooling are some of the most energy intensive sectors in today’s energy mix and most
of the energy used for heating and cooling today is provided by fossil fuels. Therefore, integrating
renewables and energy efficiency measures is vital to reach a sustainable energy system.Sustainable heating and cooling 21
More than 70 percent of EU's heat gener- In Denmark, heating is expected to be virtu- for existing fossil fuel Combined Heat and
ation comes from fossil fuels. At the same ally carbon free by 2030. This ambition will Power plants (CHP) to be retrofitted into
time, heating represents approximately be achieved on the basis of several years of plants that produce heat generated by
50 percent of final energy consumption in long term heat planning. Integration across renewables.
Europe. sectors is a core element in completing the
final stretch. Much of the development has Currently, the utilisation of excess heat
If the heating supply is to live up to the been achieved through the large-scale from industry and even supermarkets in
objectives of the Energy Union, it needs to transition to district heating, which is an Denmark as an input in the district energy
be better integrated with the rest of the important infrastructural premise that system is increasing. This is achieved
energy system. As the price of renewable must be present to broadly integrate through an increased use of heat pumps.
energy has fallen, low-carbon electricity renewable sources. Today approximately 2 The European Union estimates that 100
presents a green and sustainable alter- out of 3 households are supplied by district percent of all building’s heating demand in
native to fossil fuels in the heating sector. heating in Denmark, which allows a more Europe can be covered by this excess heat,
This can be via large scale heat pumps in efficient heat supply if produced centrally which is why the capture of this resource
combination with district heating or as an in densely populated areas. More than has a large potential in reaching the 2030
individual heating option. Furthermore, 60 percent of that heat is produced from targets.
waste heat from both conventional power renewable sources. The primary renewa-
production and industry can increase effi- ble source is biomass (hay, wood pellets, This chapter will showcase the key technol-
ciency and reduce the carbon foot print of household waste etc.), which has replaced ogies when it comes to decarbonising the
the heating supply. the use of coal, oil and natural gas. Biomass heating and cooling sector towards 2030.
is an important transition fuel, as it allows22 Sustainable heating and cooling
Smart district heating in Copenhagen with heat pumps of the technology in interplay with a district heating system and
Large electric heat pumps are expected to be a key technol- as storage for wind power.
ogy in the future energy system. District heating companies
in Copenhagen are spearheading an innovation partnership The results from the test programs will provide extensive data
regarding the establishment of a large scale ammonia heat material relevant to district heating companies and the heat pump
pump (5 MW heat delivery) for demonstration purposes. The sector in terms of demonstration and maturing the technology. This
partnership represents key players with expert knowledge from will contribute to diversifying green production technologies for
industry, research institutions and the district heating sector and district heating in the future and increase the utilisation of wind and
receives funding from the Danish Energy Agency. The purpose of sun energy.
the project is to test which heat sources are suitable for district HOFOR, CTR, VEKS
heating and to determine the reliability, efficiency and flexibility
Award-winning heating and cooling ‘as-a-service’ The system is delivered by Best Green, who offer heat as a service to
With its 2,600 m2, Resilience House, located near Vejle in the private actors, business and municipalities in areas without district
western part of Denmark, is an international lighthouse for the heating. Best Green purchases, installs and maintains a heat pump
development of resilient solutions. The intelligent heating and solution at the client, who thereby avoids service and maintenance
cooling system in the building proves that heat pumps are more than costs. The energy needed to run the system is based entirely on wind
a sustainable alternative to traditional heating. The heating and and sun energy, making the solution carbon neutral. The heating
cooling system consists of energy wells and heat pumps. During the solution won the ‘DecarbBuilding’ award in 2018 by the European
winter months, the heat pumps heat the building, while cooling, the Heat Pump Association – an award given to the most sustainable
residual product of heat production, is stored in the energy wells. buildings in Europe operating on heat pumps.
This cooling is applied in reverse to cool the building down during the
summer. Best Green
Photo: Best GreenSustainable heating and cooling 23 Surplus heat from industry supplying heating to citizens In order to produce cement, raw materials such as limestone and The Aalborg Portland cement factory supplies surplus heat from sand have to be burned at temperatures of up to 1500°C. Due production in the form of district heating to the residents of to this high temperature process, the Aalborg Portland cement Aalborg. In 2017, this surplus heat corresponded to the annual heat factory has enormous supplies of excess heat. One of the main consumption of approximately24,000 households. There are also sources of waste heat is the flue gas streams from the white kilns. other projects in the works to utilise excess heat, such as reusing the The solution to this energy loss was to implement a heat recovery hot air from the grey kiln’s clinker cooler as primary inlet air to all the system, in which the flue gasses from the five white kilns are uti- white kilns and one of Aalborg Portland’s coal mills. lised in heat exchanger installations to transfer the thermal energy from the flue gas to Aalborg’s district heating network. Aalborg Portland District heating supplying clean energy Trading System). Dall Energy is currently designing a 17 MW district heating plant for The patented Dall Energy gasification process is a modern alterna- Dalkia in France. The plant will be based on Dall Energy’s gasification tive to traditional grate combustion and offers low maintenance technology, which is developed in Denmark. Dalkia is responsible costs combined with high fuel flexibility. This ensures sustainable for a large-scale expansion of the district heating network in the biomass of various qualities can be sourced locally at a cost which city of Rouen. Part of this upgrade is the installation of new heat is lower than normal for high-quality woodchips. This project has generation capacity. The plant will be based on the gasification of received funding from the European Union’s Horizon 2020 research biomass in order to reduce the city’s environmental footprint for and innovation programme. non-ETS sectors (sectors not quota regulated via the EU Emissions Dall Energy & Dalkia
24 Sustainable transportation
SUSTAINABLE TRANSPORTATION
Accelerating the decarbonisation of the transport sector
Private, heavy and maritime transport produces a large CO2 footprint today and this footprint has
only increased over the last decade.Decarbonising the transportation of goods and people is one of
the largest challenges, but also represents one of the biggest opportunities.Sustainable transportation 25
From 1990 to 2016, most of the major GHG and more collective transportation. All of of biogas, sustainable biofuels or even
emitting sectors (electricity, heat, industry these technologies can contribute to a electrofuels.
and buildings) managed to reduce CO2 decarbonised transport sector and thereby
emissions. However, transport (especially achieve clean energy objectives. The revision of the Renewable Energy
road transport) is a noticeable exemption Directive includes a target of incorporating
from this trend. For this reason, the share Existing solutions can be 14 percent renewable energy in the trans-
of GHG emissions from transport in the EU implemented today portation sector, which paves the way for
went from 15 percent to 24 percent during Sales of electric vehicles are accelerating the increased deployment of electricity,
this period of time. The transport sector has at unprecedented speeds as the selection biogas and biofuels. 1st generation biofuels
traditionally been difficult to decarbonise of models is widening and battery costs generated from feed and food crops will be
due to the lack of alternatives to gasoline are falling. A MIT study from 2016 suggests phased out. Instead this opens for incor-
and diesel combustion engines. However, the 87 percent of all trips in passenger cars porating more sustainable and advanced
recent years have shown promising alterna- can be made in electric vehicles. As battery biofuels based on waste and by-products
tives developing. range increases and charging infrastructure from agriculture, industry and households.
deployments accelerate, this share will be Investments in sustainable transportation
Road transport accounts for more than 70 even higher in the future. Solutions to heavy have to be planned over the long term.
percent of GHG emissions in the transport duty vehicles are also entering the market. Decisions taken over the next few years
sector in Europe and passenger cars alone The first steps towards the use of electricity will define the landscape for decades.
account for more than 40 percent. However, and biogas in city buses are already being Investments that make better use of the
it is clear that road transport is also where deployed across Europe. Furthermore, the infrastructure, create less congestion and
the most readily available technical solu- development within advanced biofuels has ensure a better traffic flow will all contribute
tions can be found. the potential to reduce carbon emissions to sustainable transport. The political will
from heavy duty vehicles significantly. Even need to accompanied by a willingness to
It is crucial to bring all available technologies maritime transport is starting to move. In support innovation, research and develop-
into play – electric cars, trains and buses, bio particular, short sea shipping routes can ment in current and future solutions within
fuels, plug-in hybrids, biogas, electrofuels benefit from electrification and the use all technologies.26 Sustainable transportation
Photo: Clever
Electric vehicles moving Europe
The number of electric vehicles sold worldwide has reached 4 In addition, Clever is rolling out ultra-fast charging stations along
million. This happened only six months after the 3 million mark was freeways from Norway to Italy with funding from the EU, making
reached. Both European and national legislation will boost sales e-mobility truly borderless. By 2020, Clever and E.ON will roll out 180
further, ramping up the demand for user-friendly and reliable charg- ultra-fast charging stations in seven different countries. The charg-
ing infrastructure. ing stations will be placed along intervals of 120 - 180 kilometres on
European highways, which will essentially facilitate electric vehicle
Clever meets the new demands with the design of the first ever transportation from Norway to Italy. The project will consist of
flat-rate charging subscription fused with the purchase of new ultra-fast 150 kW to 350 kW charging points. This will enable cus-
electric vehicles sold in Denmark to give customers the freedom and tomers to charge cars to a 400 km reach level within 15-20 minutes.
mobility to charge where and when it suits them – at home, at work
and on the go. Clever
Green public transport for growing urban populations public transport network as a whole. Since 2017, Copenhagen’s – and
Throughout the globe, Copenhagen is renowned for its sustainable Scandinavia’s – busiest bus route has been served by carbon neutral
urban development and high quality of life. However, the city is cur- busses running on biogas, which transport 20 million passengers a
rently expanding with 1000 new inhabitants every month. As such year. In 2019, a new metro circle line will open, along with two new
there is a need for new, smart solutions and efficient, green public electric bus routes. This is part of an ongoing drive to replace all of
transport to accommodate these multitudes of new Copenhageners the city’s diesel busses with greener (zero emission) alternatives by
– and to achieve the ambitious goal of becoming the world’s first 2025, which will save the city approximately 17,865 tonnes of CO2
carbon neutral capital by 2025. and 38.8 tonnes of nitrogen oxides a year.
Copenhagen has already made great strides. The city has an efficient City of Copenhagen
metro network and is currently investing heavily in expanding itsSustainable transportation 27
Biodiesel as a circular solution to transportation environmentally friendly businesses and models that tackle future
As the world and the European Union in particular have renewed challenges. Daka ecoMotion is one of the companies tackling these
efforts to reduce greenhouse gas emissions, the quest to find alter- challenges through the production of 55 million litres of advanced
native fuels for the transportation sector has intensified. biodiesel. Daka ecoMotion utilises animal by-products, mainly from
Danish agriculture, and refines animal fat into biodiesel.
Heavy-duty vehicles are responsible for 25 percent of all CO2
emissions arising from road transport in the EU. The European With an 83 percent reduction of CO2 emissions compared to con-
Commission’s target is to reduce CO2 emissions from heavy-duty ventional fuels, renewable biodiesel from Daka ecoMotion has the
vehicles by 15 percent in 2025 compared to 2019 levels and at least potential to be one of the major contributors to fulfill the EU’s CO2
30 percent in 2030 compared to 2019 levels. Biofuels significantly reduction targets in the heavy-duty vehicle sector.
contributes to reach these goals.
Daka Denmark
Continuous focus on sustainable growth has generated several
Electrical zero-emission passenger ferry due to its 4.3 MWh battery capacity and its 4 MW charging effect.
The transport sector is responsible for a large percentage of GHG The E-ferry will be charged with certified green electricity and will
emissions worldwide. This is certainly the case on the island of Ærø be a zero-emission vessel. Compared to existing ferries servicing the
in the Southern Danish archipelago, where transport accounts for island of Ærø, the E-ferry will reduce emissions of 2 000 tonnes of
up to 40 percent of the total GHG emissions. Together with eight CO2, 41 500 kg of NOx and 1 350 kg of SO2 annually.
European partners from research and industry and with co-funding
from the European Commission’s Horizon 2020 Innovation Fund, the Leclanché, Danfoss Editron, Tuco Marine Group,
Municipality of Ærø has therefore started the E-Ferry project. The Consulting Naval Architect Jens Kristensen, Hellenic Institute
goal is to design, build and demonstrate a fully electric, zero-emis- of Transport, Danish Maritime Authority, Søby Shipyard, Danish
sions vehicle and passenger ferry. The E-ferry will be able to cover Institute of Fire and Security Technology, The Municipality of Ærø
distances seven times longer than current battery-electric vessels,
The E-ferry project has received funding
from the European Union’s Horizon 2020
research and innovation programme.You can also read
