Overview of the national policy framework for energy communities

Denmark has a long history of engagement with citizens and local authorities in its energy system. Over twenty years ago, the utilities producing and supplying electricity were consumer-owned, cooperatives or municipal entities. Similarly, the district heating companies were, and are still largely, consumer-owned cooperatives or municipal entities. Local actors were also pioneers and largely contributed to the expansion of wind energy in Denmark.

The Electricity Supply Act n°984 of 2021 (updated in 2023 with Act n°1248) and the Renewable Energy Act n°1791 of 2021 (updated in 2024 with Act n°1031) enabled the ministry in charge of energy to define rules for implementing energy communities' provisions. On these bases, several orders were published, including the implementing order BEK n°2021/1069, developing the provisions on energy communities. The definitions, rights, obligations and enabling framework have been transposed. Except for their definitions and the geographical areas where they can operate, nearly all provisions for Renewable Energy Communities (RECs) and Citizen Energy Communities (CECs) are the same.

In order to facilitate the reading of the note, the term "Energy Communities" (ECs) is used instead of repeating RECs and CECs: nearly all provisions related to rights and obligation and to the enabling framework apply to both RECs and CECs. However, the term does not exist in the Danish legislation.

Last updated: May 2025