Analysis of Danish energy companies’ reported cost

Denmark | March 2018 - October 2018

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 2015 and 2016. For each of the two years, a total of 25 companies with costs per saved kWh among the highest 5% reported were investigated.

The purpose was to gain insight into the cost-effectiveness of the companies’ energy saving efforts in 2015 and 2016, and why some companies realise savings at higher or lower costs per saved kWh. Furthermore, the analysis aimed to clarify what steps the most expensive companies may have taken since 2015 and 2016, respectively, to reduce their costs.

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