Broad majority backs emergency plan for Denmark’s electricity grid

A broad majority of parties in the Danish Parliament has approved an emergency plan for the electricity grid, replacing the current first-come, first-served principle with a system that allows grid operators to prioritise access to limited capacity.

Pressure on the electricity grid is currently so high that in several areas there is not enough capacity to connect all projects seeking access. A broad majority of parliamentary parties therefore agreed on an emergency plan before the summer.

The plan has now been passed by the same broad majority, putting the legislative framework for the new prioritisation model in place.

Under the plan, Energinet and electricity grid companies will have greater scope to decide which projects should receive access when capacity is limited.

“The situation in our electricity grid is deeply serious. Grid capacity has become a scarce resource, and that could slow both electrification and the green transition,” Climate, Energy and Utilities Minister Samira Nawa said.

She described the emergency plan as the first step in a wider effort to prioritise, expand, optimise and rethink Denmark’s electricity grid.

The agreement is backed by parties including the Social Democrats, Socialist People’s Party, Venstre, Danish People’s Party, Moderates, Conservative People’s Party, Red-Green Alliance, Danish Social Liberal Party and Alternative.

Several of the parties highlighted the need to prioritise projects considered important to society when there is insufficient capacity for all projects at the same time.

SF climate and energy spokesperson Nanna Bonde said Denmark risked allowing data centres operated by global technology companies to block shared green solutions such as public transport and district heating.

Venstre spokesperson Mathilde Hjort Bressum stressed that the prioritisation model should be used as a temporary tool in an acute situation rather than becoming the new normal. She called for negotiations on expanding Denmark’s transmission grid and developing an overall plan for the country’s energy infrastructure.

The Red-Green Alliance said the agreement would place data centres at the back of the queue while prioritising Danish homes and services including heating, public transport, healthcare and climate projects.

Alternative also highlighted the treatment of large hyperscale data centres, saying the new rules would make it possible to reject them in order to prioritise critical societal functions and the transition away from fossil fuels.

Emergency plan is the first step

The emergency plan was originally based on a political understanding between the parties. They have now agreed to turn that understanding into a formal political agreement.

The agreement is based on the framework reached before the summer break, with adjustments following the public consultation, parliamentary consideration and questions and comments from the parties.

According to the agreement, the Ministry of Climate, Energy and Utilities assesses that politically determined prioritisation based on societal considerations does not in itself require prior approval from the Danish Utility Regulator before it can be applied by Energinet and the grid companies.

The specific use of criteria relating to how projects interact with the grid must, however, be based on methods approved by the regulator.

The legislation is scheduled to enter into force on 12 October. Once the law and accompanying regulations are in effect, Energinet and the grid companies will be able to apply the new rules when electricity grid capacity is next allocated this autumn.

The emergency plan is intended to make better and more targeted use of existing capacity while work continues to expand the grid and accelerate its development.

The parties to the agreement will also be invited to upcoming discussions on expanding the electricity grid and the Energy Infrastructure Plan 2035.