The Danish Energy Reform

Since 1998 Denmark has been in a process of re-regulating its energy market introducing competition and incentive based economic regulation. The ''Danish model'' reflects specific Danish political priorities on energy, environment and the role of the energy consumers. The paper focuses on the electricity sector, tracing the reasons why Denmark re-regulates the way it does and what are the results. Denmark is a small country of 430002 kilometers and 5.3 million inhabitants. Denmark is a net-exporter of oil and gas produced in the North Sea. The hydro-resources are negligible. Renewable energy, however, covers 11 percent of gross energy consumption.(author)