AEEC Summer Camp Conference 2012

Energy Law in Denmark – Recent developments with a focus on electric cars

Søren Hornbæk Svendsen

24 August 2012

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› Status on energy regulation and objectives in EU/Denmark› Influence of the 2012 Agreement on the transportation sector› Regulation and challenges of electric cars in Denmark › Electric cars - why, how and when? › Why are electric cars economically advantageous in Denmark › Status on electric cars in Denmark

Agenda

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Regulation and objectives from EU

› The Renewable Energy Directive (2009/38/EC) - Objectives› By 2020 renewable energy should account for 20 % of the EU’s final energy

consumptionEU Member state 2009 Figure 2020 target % to

cover

United Kingdom 2.9 % 15 % 12.1 %

Ireland 5.1 % 16 % 10.9 %

Denmark 19.7 % 30 % 10.3 %

France 12.4 % 23 % 10.6 %

Spain 13 % 20 % 7 %

Greece 7.9 % 18 % 10.1 %

EU 11.6 % 20 % 8.4 %

Italy 7.8 % 17 % 9.2 %

Belgium 3.8 % 13 % 9.2%

Germany 9.7% 18 % 8.3%

Portugal 25.7 % 31 % 5.3%

Source: The Renewable Energy Directive (2009/38/EC)

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Regulation and objectives from EU

› The Renewable Energy Directive (2009/38/EC) - Objectives› By 2020 renewable energy sources shall make up 10 % of the energy consumed in the

transportation sector.

Regulation ObjectiveEU (2009/38/EC) 10 %

Denmark – 2008 agreement 5.75 % (reached 2012)

Denmark – 2012 agreement 10 %

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› Legal frameworks and objectives in Denmark:› Agreement of 21 February 2008 (for the period 2008-2011)

› Reached objectives:› Renewable energy to represent 20 % of the Danish gross energy consumption › Acts regarding renewable energy consolidated in one act (Act on Renewable Energy)› Public tender/procurement regarding the building of two wind farms, Anholt (2x200 MW)

› Agreement of 22 March 2012 (for the period 2012-2020)› Main objectives:

› Wind energy to represent 50 % of the Danish gross electricity consumption by 2020› Renewable energy to represent 100 % of the total Danish Energy consumption by

2050› 1,000 MW increase in offshore wind capacity, new capacity of 500 MW at near-shore

areas, and a 500 MW increase in onshore capacity› Establishment of an intelligent electricity system smart grid › Electricity and biogas in the transportation sector

Status on energy regulation and objectives in Denmark

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› Political agreement on the fact that the transportation sector needs a radical reorginazation from conventional cars to alternative propellants e.g. electricity and bio mass

› A strategy for the promotion of e-cars, hybrid plug-in cars etc. shall be prepared to support the launch of chargers for e-cars and infrastructure for hydrogen and gas in the transportation sector

› Fuel has to be added 10 per cent of biofuel in 2020 – to reach the objectives specified in The Renewable Energy Directive (2009/387/EC)

› Extension of the electric car pilot scheme

Influence of the 2012 Agreement on the transportation sector

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› Main Legal framework:› Danish Electricity Supply Act

› Implements the EU electricity directive

› Other: › Tax law, standardisation law, law on spatial planning etc.

Regulation and challenges of Electric cars in Denmark

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› Free choice of electricity supplier› When charging at home› When charging elsewhere – roaming

› Installation of charging stations and metering

› Unbundling requirements

Regulation and challenges of Electric cars in Denmark

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› Security of supply › Reduction of CO2–emissions – very few initiatives in the

Transport Sector› Local environment impact – reduction of air pollution› Efficient use of energy› The use of electric vehicles is one of the keys to fit in more RE

in the electricity system

Why do we need electric cars/alternative propellants

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› Subsidy schemes› In general the registration of a car in Denmark is charged a tax on 180 % of the basic value of the car› Electrically powered cars are not charged this registration tax at least until 2015

› The exemption of tax is on the condition that the engine is 100 % powered by electricity › A Renault Fluence Z.E costs DKK 206.900 while a similar Renault Laguna charged registration tax costs DKK

359.000 › Due to the existing tax regulation of hybrid cars an Opel Ampere costs DKK 626,670 (DKK 341,955 in Germany)

› Smart grid and intellectual electricity meters

How – public initiatives

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› Better Place › Battery change stations› Drive [Denmark] Electric

› Clever › Quick charge

› Danish Electric Vehicle Alliance

How - Private initiatives

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› Consumer behaviour:› 80 per cent drive below 80-100 kilometers a day› Cars are out of use 22 hours a day› Easy to drive. Many are able to drive an electric car› More comfortable: less noise and petrol fumes

› Change of mind› It takes time to change the habits of consumers› Research shows that it takes between 20-30 years for new tecnology to break through

When - Electric cars and consumers?

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Status on E-cars in Denmark

Cars registered in Denmark

Electric cars Total cars Per cent of total number of cars

2012 318 100,999 0.3 %

Overall 1063 2,304,190 0.04 %

Source: Danske Bilimportører