Smart Grid – the intelligent electricity grid – is a central instrument in the effort to meet Denmark's climate objectives. This is one of the main conclusions of the Danish Government's network, which was established in December 2010. The final report, which was published on Monday 24 October, contains nine main recommendations and a number of sub-recommendations. Several of the recommendations match DONG Energy's ambitions in the area perfectly. This is the conclusion of Anna-Grethe Hjortkjær, Senior Manager, who has been DONG Energy's representative in the network.

"The recommendations are in line with DONG Energy's business strategy and the recommendations will definitely promote a conversion of the energy system. One of the main recommendations is that the grid companies must be given an improved legal framework for introducing smart grid solutions. It’s also positive that the network recommends a change of the levy system to promote electricity in the energy system."

The electricity price must fluctuate
One of the central recommendations is that the electricity price must fluctuate during the day and that the grid companies must be given sufficient freedom to stimulate flexible consumption. Thereby, price signals may help move the consumption to periods when the strain on the grid is small and to periods with high renewable energy production.

"Stimulation of flexible consumption is one of the cornerstones of an intelligent energy system. If the consumption does not become more flexible, the grid companies will have to invest large sums in expansion of the grid. This is where DONG Energy has taken the lead, because on 1 January 2012, we introduce time-differentiated tariffs for our customers who buy electricity by the hour," says Anna-Grethe Hjortkjær.

Our trade organisation, Dansk Energi, also finds the report's recommendations interesting. In a press release, Lars Aagaard, CEO, emphasises that something needs to be done about the financial regulation of the grid companies.

"We can’t realise Smart Grid before regulation is in place that ensures the grid companies a financial gain if they invest in the smart grid. Therefore, we need the politicians to give the regulations a thorough check-up."