Henrik Klinge Jacobsen

• PhD Economics
• Professor (Full) at Technical University of Denmark

This paper investigates volumetric grid tariff designs considering different pricing mechanisms and resulting in cost-allocative impacts across socio-techno-economic consumer categories. In a case study of 1.56 million Danish households divided into 90 socio-techno-economic categories, we compare three alternative grid tariffs and investigate their...

Recent years have shown a rapid adoption of residential solar PV with increased self-consumption and self-sufficiency levels in Europe. A major driver for their economic viability is the electricity tax exemption for the consumption of self-produced electricity. This leads to large residential PV capacities and partially overburdened distribution g...

Residential electrification of transport and heat is changing consumption and its characteristics significantly. Previous studies have demonstrated the impact of socio-techno-economic determinants on residential consumption. However, they fail to capture the distributional characteristics of such consumer groups, which impact network planning and f...

Developing new electricity grid tariffs in the context of household electrification raises old questions about who pays for what and to what extent. When electric vehicles (EVs) and heat pumps (HPs) are owned primarily by households with higher financial status than others, new tariff designs may clash with the economic argument for efficiency and...

Residential electrification of transport and heat is changing consumption and its characteristics significantly. Previous studies have demonstrated the impact of socio-techno-economic determinants on residential consumption. However, they fail to capture the distributional characteristics of such consumer groups, which impact network planning and f...

Electricity grid tariffs should reflect network costs in order to provide efficient incentives for timing electricity use and investment in new technologies. We compare tariff designs that deal with existing and expected future grid congestion. Although common volumetric tariff designs such as Time-Of-Use are partly cost-reflective, their designs h...

To reduce CO2 emissions, electrification of the transport sector is a central element in many countries. For Denmark, this will considerably increase the aggregated electricity consumption. How this affects the need for production-, transmission-, and distribution capacity depends on when and where the electricity is consumed. Using hourly meter da...

Households are heterogeneous customers that consume different amounts of electricity for different purposes at different hours of the day. Understanding how the level and timing of electricity consumption is related to household characteristics is important in planning production and grid capacities and in designing policies. Linking Danish smart-m...

This paper studies biogas value chains and the effect from various economic support instruments on these value chains. This is done by comparing two European countries that are quite similar in size, income levels and environmental ambitions, but which are using very different instruments to support biogas development. Norway provides investment su...

The residential building stock holds a large energy efficiency improvement potential related to energy-upgrading of the building envelope. Details about the heterogeneity of the building stock are paramount to perform a proper assessment of attractive energy efficiency improvements for end-users. Based on a sample of buildings, the study develops m...

The development of offshore wind farms depends on many technical and economic parameters, which requires an integrated planning approach. Some parameters can be controlled by the wind farm developer, and some are determined by the regulatory authorities. Others can be outside control of both. One aspect of optimizing wind farm development is overpl...

This paper studies biogas value chains and the effect from various economic support instruments on these value chains. This is done by comparing two European countries that are quite similar in size, income levels and environmental ambitions, but which are using very different instruments to support biogas development. Norway provides investment su...

Improving energy efficiency within the industry will play a central role in mitigating greenhouse gas emissions by reducing the use of fossil fuels. Nevertheless, the ex-ante evaluation of energy-efficiency policies largely remains an unresolved challenge. Understood within a theoretical economic framework, the root of the challenge is the simultan...

Offshore wind power cost depends on many factors, of which some are controlled by the developer and some are determined by the regulatory authorities and others are outside control of both. A particular option is the overplanting of offshore wind farms with additional turbines relative to the tendered capacity. There are two elements of savings rel...

Nearshore wind development has been seen as the cost reducing option that could shrink the cost gap between onshore and offshore development. The cost advantage is linked to more shallow water and shorter connection to shore even avoiding an offshore substation. Public tendering for offshore wind in Denmark has opened up for near-shore wind turbine...

The residential building stock holds a large saving potential related to energy-upgrading of the building envelope. Heterogeneous details about building characteristics are paramount to perform a proper assessment of attractive heat-savings measures. Based on a sample of buildings, the study develops methods to identify saving potentials for hetero...

Cost efficient deployment of wind energy is in focus for reaching ambitious targets for renewable energy and transforming the energy supply to one based on renewables. However, as more wind is being deployed the available sites onshore become less attractive in terms of wind conditions and capacity factor and more resistance from population groups...

Energy savings are a key element in reaching ambitious climate targets and may contribute to increased productivity as well. For identification of the most attractive saving options cost curves for savings are constructed illustrating potentials of savings with associated costs. In optimisation modelling these cost options are then compared with th...

Biogas production is characterised by economies of scale in capital and operational costs of the plant and diseconomies of scale from transport of input materials. We analyse biogas in a Danish setting where most biogas is based on manure, we use a case study with actual distances, and find that the benefits of scale in capital and operational cost...

Currently there exist high expectations for the development of wind energy, particularly in Europe, out of which offshore wind turbine developments will be central as tools to achieve current energy targets. The question between nearshore and (far)-offshore is particularly relevant, both because of increased public resistance due to visual disameni...

Electricity demand profiles and electricity savings must be analysed in an integrated way to identify the most attractive savings. Cold appliance related savings have much less system value than savings in lighting.

The trade-off between investing in energy savings and investing in individual heating technologies with high investment and low variable costs in single family houses is modelled for a number of building and consumer categories in Denmark. For each group the private economic cost of providing heating comfort is minimised. The private solution may d...

In recent years, Denmark has gained considerable international attention as one of the first movers in implementing a green energy transition – the so-called grøn omstilling. In order to achieve an energy system independent from fossil fuels by 2050, Denmark is pursuing an integrated policy approach that takes all energy sectors into account. In 20...

There are considerable benefits from cooperating among member states on meeting the 2020 renewable energy sources (RES) targets. Today countries are supporting investments in renewable energy by many different types of support schemes and with different levels of support. The EU has opened for cooperation mechanisms such as joint support schemes fo...

In liberalised markets the ability to maintain security of electricity supply is questioned because security is characterised as a public good. We discuss if this property can be modified with changing technology. Furthermore, we examine if construction of markets for security can be justified by possible welfare gains. From a welfare perspective i...

The loss from curtailing generation based on renewable energy sources is generally seen as an unacceptable solution by the public. The main argument is that it is a loss of green energy and an economic loss to curtail generation with near zero marginal costs. However, this view could lead to overinvestment in grid infrastructure and underinvestment...

EXECUTIVE SUMMARY According to the projections presented in (Dalla Longa et al., 2011), offshore wind energy constitutes a large potential in the medium cost range that can be exploited using cooperation mechanisms. A large fraction of this potential is found in the North Sea area, where wind conditions are good and the water is relatively shallow....

This document is a summary report highlighting the main aspect analyzed in the RES4LESS case studies. The document starts with an introductory chapter where the background that led to the selection of the case studies is outlined. In the following three chapters the case studies are presented, highlighting the most relevant results. A brief chapte...

Ress4less Report about EU cooperation mechanisms for achieving renewable energy targets

Different support schemes are applied for the promotion of renewable energy sources in EU Member States. Current EU legislation opens opportunities for international cooperation to achieve national renewable targets more efficiently, either by statistical transfers, joint projects or joint support schemes. This article investigates their interplay...

EU has opened for using joint support schemes as support for promoting renewable energy to meet the 2020 targets. Countries are supporting renewable investment by many different types of support schemes and with different levels of support. The potential coordination benefits with more efficient localization and composition of renewable investment...

This article seeks to investigate the interactions between the policy dimensions of support schemes and network regulation and how they affect distributed generation. Firstly, the incentives of distributed generators and distribution system operators are examined. Frequently there exists a trade-off between the incentives for these two market agent...

The increasing prevalence of renewable and intermittent energy sources in the electricity system is creating new challenges for the interaction of the system. In Denmark, high renewable shares have been achieved without great difficulty, mainly due to the flexibility of the nearby Nordic hydro-power dominated system. Further increases in the share...

At present, there exists no explicit European policy framework on distributed generation. Various Directives encompass distributed generation; inherently, their implementation is to the discretion of the Member States. The latter have adopted different kinds of support schemes, ranging from feed-in tariffs to market-based quota systems, and network...

The increase in oil prices has put pressure on the global economy. Even economies that have a high degree of self-sufficiency concerning oil products are experiencing rising production costs and price increases for households energy use. Therefore, changes in energy policies are under consideration for countries highly dependent on imported energy...

Liberalisation of energy markets has during the last 20 years been gradually introduced in many countries. The liberalisation has led to concerns regarding the markets’ state of competition and fears that market power existence can result in less efficiency gains than what is expected from liberalisation. Concerns have also been raised as to whethe...

Denmark today carries one of the heaviest environmental tax burdens in the world, bringing in around 10% of public revenues. While evaluations have shown that the Danish CO2 and other environmental taxes work as an effective measure to reduce emissions, a considerable barrier to increased use of these instruments today seems to be a widespread perc...

This paper contains an analysis of stylised natural gas and electricity supply sectors. Power plants operate either on natural gas or on a competing fuel-e.g. oil. The competing fuel is assumed to be traded at world market price whereas natural gas is sold by a national monopoly. The paper conducts a number of analyses using different market struct...

Internationally a debate on the distributional impact of energy taxation has focused on the tax burden relative to income. The general conclusion is that taxes are regressive, but at a varying degree for different countries. This study examines the relationship between location, income, heating technology characteristics and the energy tax that hou...

Liberalisation of energy markets has been gradually introduced in many countries during the last 20 years. The liberalisation has led to concerns regarding the state of competition on the markets and fear that market power exists that can result in less efficiency gains than what is expected from liberalisation. Also concerns that specific consumer...

Environmental taxes have been introduced in many countries. However, few countries have reached the level of environmental taxation that is seen in Denmark today. This paper analyses the individual taxes as well as the combination of all these taxes and duties related to environmental concerns, including taxes on heating, transport fuels, electrici...

Denmark today carries one of the heaviest environmental tax burdens in the world, bringing in around 10% of public revenues. While evaluations have shown the positive effects of the Danish CO2 and other environmental taxes, a considerable barrier for an increased use of these instruments today seems to be a widespread perception of their socially a...

Environmental taxes imposed on households have been introduced in many countries. However, few countries have reached the level of environmental taxation as is seen in Denmark today although many are considering shifting the tax burden towards the consumption that are harming the environment. The total tax burden imposed on households in Denmark th...

This paper discusses different approaches to incorporating technological progress in energy-economy models and the effect on long-term energy demand projections. Approaches to modelling based on an exogenous annual change of energy efficiency to an endogenous explanation of innovation for energy technologies are covered. Technological progress is a...

This paper examines structural change in the power and heat producing sector (energy supply) and its implications for the economy. An integrated approach is used to describe the interactions between this sector and the rest of the economy. Thus, a very detailed model of the sector for Denmark has been linked to a macroeconometric model of the Danis...

This paper analyses the combination of taxes and subsidies as an instrument to enable a reduction in CO2 emission. The objective of the study is to compare recycling of a CO2 tax revenue as a subsidy for biomass use as opposed to traditional recycling such as reduced income or corporate taxation.A model of Denmark’s energy supply sector is used to...

This paper examines the relation between trade patterns and energy consumption in manufacturing industries. An input-output decomposition method is used to decompose the change in industrial energy consumption for Denmark into six components, of which three are trade-related. Trade-induced changes in energy consumption have important implications f...

Technological progress is an important issue in long-term energy demand projections and in environmental analyses. Different assumptions on technological progress and diffusion of new technologies are among the reasons for diverging results obtained using bottom-up and top-down models for analysing the costs of greenhouse gas mitigation. This paper...

This paper address two issues related to energy technology and trade. First it examines the importance of changes in energy technology for long-term trade developments of the Danish manufacturing industry. Secondly the trade potential of a policy to support the development of environmental friendly energy technologies is examined. Energy technologi...

This report is a result of a project carried out in the period from August 1996 to September 1999 and financed by the Danish Energy Research Programme (EFP) 1996. The project has been carried out as a PhD project, and the material included in the report is a collection of papers dealing with different issues related to the topics included in the ti...

A central concern of Danish energy and environmental policy is the fulfilment of international obligations to limit emissions of CO2, SO2 and NOx. The model presented aims at giving a frame of reference within which energy and environmental issues may be analysed in line with - and consistent with - macroeconomic analyses. The paper presents the th...

This paper presents results from an integration project covering Danish models based on bottom-up and top-down approaches to energy–economy modelling. The purpose of the project was to identify theoretical and methodological problems for integrating existing models for Denmark and to implement an integration of the models. The integration was estab...

This paper discusses different approaches to incorporating energy technologies and technological development in energy-economic models. Technological development is a very important issue in long-term energy demand projections and in environmental analyses. Different assumptions on technological development are one of the main causes for the very d...

Security of supply in electricity markets has been seen as a critical test for the functioning of the markets. This has been especially relevant for the existing spot and futures markets, and less explicit for the quality aspect of electricity, which has only to a marginal extent been covered by markets. This paper describes the possible steps and...

In recent years the liberalisation of energy markets has gained momentum and has resulted in the crea-tion of large electricity markets in Europe. Liberalisation is also taking place within the natural gas sector and to some extent for Combined Heat and Power production. The energy markets are depend-ent on each other because of the fuels used for...

With the large potential for increase in installed offshore wind capacities especially at far-offshore locations, cooperation and coordination across countries can contribute to a more efficient expansion of renewable generation. Locations are often bordering areas between markets with different support schemes and rules for market access, market i...