Danish energy companies’ reported cost under the Energy Efficiency Obligation

Denmark | June 2016 - September 2016

The Danish energy companies annually realise energy efficiency targets in accordance with the Danish Energy Efficiency Obligation. The costs of the companies’ energy saving activities are covered as a part of a cost-effective fulfilment of the obligation. In compliance with the agreement an annual cost analysis, focusing primarily on the most expensive energy companies, can be made.

Ea Energy Analyses has, on behalf of the Danish Energy Agency, conducted a cost analysis of the energy companies’ reported costs associated with the achievement of energy savings obligations in 2014. In total, 25 companies with costs per saved kWh among the highest 5% reported and 5 companies with costs among the lowest 5% reported were investigated.

The purpose was to gain insight into the cost-effectiveness of the companies’ energy saving efforts in 2014 and why some companies realise savings at higher or lower costs per saved kWh. Another aim was to find out more about the focus of the effort, how competitive prices are ensured, and what steps the most expensive companies may have taken since 2014 to reduce their costs.

In subsequent projects, Ea Energy Analyses has carried out cost analyses for 2015-2017.