In 1993, the Danish government introduced voluntary energy efficiency agreements with industry known as Denmark’s Agreement on Industrial Energy Efficiency (DAIEE). While the agreements were introduced as early as 1993, mandatory energy management systems (ENMS) implementation was introduced in 2001. To participate in the voluntary agreement, enterprises must obtain an energy management certification (currently transitioning from EN 16001 standard to ISO 50001), make a number of “special investigations” (a comprehensive analysis on a specific energy aspect), and implement all projects with a simple payback horizon of less than four years. Companies joining the Agreement get a rebate on the CO2 tax applicable to all fossil energy sources.
Agreements need to be renewed after three years, which gives the Danish Energy Agency the flexibility to make frequent revisions
Target Group - Size:
Target Group - Industry Focus:
Target Group - Description:
106 enterprises are participating in the agreements (as of March 2012).
GHG emission source covered:
To increase the energy efficiency of Denmark’s energy-intensive industries while ensuring their competitiveness is not threatened by the CO2 taxes.
Program Funding Source:
Financed through the national budget
Total Program Funding:
EUR 5.4 million each year.
Energy Management System:
Program Offerings for Industry:
Training: The Danish Energy Agency trains external energy engineers to assist companies in implementing EnMS. Contact information for consultancy agencies that offer services to help companies comply with the programme requirements is available on their website.
Workshops and seminars: Networking activities and workshops enable the dissemination of best practices, and the sharing of experiences and knowledge.
Information and resources: Case studies, guidelines and practical and operative tools, resources on the DEA website help companies implement EnMS.
Financial Incentives: Companies can receive grants of 50 percent to cover the costs of conducting the Special Investigations (*3).
Implementing Entity Type:
M&V requirements on industry:
Each enterprise must seek certification to ISO 50001 or EN 16001 by third parties and submits data to the Danish Energy Agency on energy consumption and a number of other key performance indicators, including progress towards achieving their targets, either manually or through an online system. The annual reporting on implementation of the agreements and targets ensure close monitoring of the progress in each individual firm. Self-reporting is complemented by detailed random sample checks of the enterprises’ EnMSs and compliance with the agreement that are made by independent verification agents
Evaluation of Program:
Impacts and Results
Savings (recent year):
Savings (program total):
Non-energy benefits (co-benefits):
The Danish Association of Energy Engineers estimates that the value of NEBs often is 2.5 to 3 times higher than the value of the energy efficiency projects. Several Danish case studies have documented the significant value of NEBs in Danish companies.  (*5).
Other useful information
(*1) Special investigations allow for a comprehensive analysis of energy consumption of a process, plant, or overall production and energy system and include an evaluation of the profitability of energy efficiency projects. The Special Investigations in Denmark focus on the more complicated process that are not included in the energy reviews and include an evaluation of the profitability of energy efficiency projects.
(*2) In Denmark in 2010, the tax based on the CO2 content of energy was 0.062 DKK/KWh. The rebates vary for different end uses (process or heating), and on the basis of whether the process is deemed heavy or light. The tax rebates are adjusted annually in the period 2010-2015 by 1.8%.
(*3) Previously, companies could receive subsidies for independent energy audits covering up to 50 percent of the costs of the audits, as well as for energy efficiency investments. As the programme matured and companies became more familiar with energy management and experienced the benefits of implementing profitable opportunities, the government discontinued financial assistance in 2001
(*4) See Ericsson, 2006. Note these are highly uncertain since they are based on a sample size of 27 companies. No information is available for 2005-2012. The latest known Danish Energy Agency evaluation was conducted in 2005 (in Danish): Evaluering af Aftaleordningen om Energieffektivisering 1998-2003 (Evaluation of the Energy Efficiency Agreement 1998–2003).
(*5) Lokalenergi, a certified energy consultant by the Danish Energy Agency, is currently exploring methods for assessing the value of NEBs