Energy policy statement 2004
Energy policy statement by the Minister for Economic and Business Affairs
pursuant to the Act on Energy Policy Measures
April 2004
_______________________________________________________________________________
The goal of the Danish government's energy policy is to create well-functioning energy markets
within frameworks that secure cost-effectiveness, security of supply, environmental concerns and
efficient use of energy. The markets must be transparent with efficient competition. This will ensure the lowest possible energy prices for energy consumers.
A great step forwards was on 29 March 2004 when the Danish government successfully completed two very important agreements between a broad majority of the Danish Parliament (Folketinget). The first agreement concerns securing a reliable energy infrastructure for the future. The
second agreement establishes the framework for expanding the number of wind farms and for a
better functioning electricity market.
The agreements establish a good foundation for the further development of the Danish energy sector. A development that can secure the necessary expansion of the energy infrastructure, taking
account of security of supply and continued development of the energy markets. Moreover, energy
legislation is being simplified to afford the energy companies a better commercial environment,
and to enhance the markets through withdrawing the duty to purchase electricity production from
wind turbines, decentralised combined heat and power stations, etc.
There was also agreement on establishing two further offshore wind farms, thus strengthening the
expansion of environmentally friendly electricity production. The new offshore wind farms will
also contribute to growth and employment, not least in the wind-turbine industry, and they will
underpin Denmark's leading position in environmentally friendly energy technology.
The two agreements will help pave the way for long-term development of the Danish energy sector within the framework of the liberalised European energy market.
The past year has also clarified matters with regard to the long-term development of North Sea activities. Before Christmas, the Danish Parliament adopted the proposal and the accompanying legislation implementing the agreement of 29 September 2003 between the Minister for Economic
and Business Affairs and A. P. Møller-Mærsk. This has provided a stable and long-term basis for
exploiting the resources in the North Sea, while also affording the state a substantially larger share
of profits generated from the activities.
__________________________
ISBN: 87-7844-461-6 www
It is important that energy policy also contributes to improving the environment. The new CO2 allowance system is a pivotal element in cost-effective fulfilment of Danish climate commitments.
The Danish bill on CO2 allowances implements the EU Emission Trading Directive which is to
create a common EU market for trading CO2 allowances.
The energy system is characterised by large investment requirements with long time horizons. The
development of new technology or new energy resources often requires many years of research
and development. The development of new structures also demands much time. Therefore, the energy field requires long-term thinking in order to ensure the best possible exploitation of Danish
energy resources and potentials. All the elements must work in an international context, and this is
becoming increasingly important. At the same time we must continue to exploit the new opportunities afforded to Danish enterprises by international development.
Therefore, the new energy policy agreements include provisions for preparing two action plans,
one on the future infrastructure and energy supply, and the second on greater energy efficiency.
The Danish government will invite input from the energy sector and other interested parties in
connection with preparation of the action plans.
1. Danish energy resources
The many and varied Danish energy resources will all have an important role in developments
over the years to come. This includes natural resources such as North Sea oil and gas, biomass
from agriculture and forestry, as well as other renewable energy, which is increasingly being used.
In addition there are human and technological resources. Danish energy policy must ensure optimal and cost-effective exploitation of all these resources.
Oil and gas production
Production from the North Sea oil and gas fields is the main reason why Denmark has been selfsufficient in energy since 1997. Technological development has made it possible to exploit a
steadily increasing percentage of the oil discovered in Danish territory. If this development continues, still larger volumes of oil can be extracted from Danish fields. What is more, new oil and
gas fields could be discovered in Denmark. A 6th Licensing Round is to be held during 2004 for
the purpose of awarding new oil and gas exploration and production licences.
An estimate of the oil production potential demonstrates a basis for almost doubling the amounts
of oil so far produced in Danish territory. This will make Denmark self-sufficient in oil and gas for
many years to come.
The intensified supervision of oil and gas production already initiated will continue, including supervision of health and safety, exploration and production wells, as well as production activities in
Danish fields. Production activities are supervised to ensure that modern production technology is
used and thus that as much oil and gas as possible is recovered from a field before it is abandoned.
2
The intensified health and safety supervision of offshore installations in the North Sea will be
maintained and further developed. The fixed, manned production installations will be inspected
every 8 months and the mobile units every 12 months, on average. As part of the supervision,
measurements of effect will be introduced, including measurements with regard to gas leaks,
maintenance standards on the fixed installations, and work-related accidents.
In several areas in Denmark, the subsoil also provides scope for producing hot water - geothermal
energy - for use in district heating. The potential for large-scale use of geothermal energy in the
Danish energy system depends on a number of technical and economic factors. A demonstration
plant for exploiting geothermal energy is being constructed in Copenhagen.
The North Sea agreement
The agreement of 29 September 2003 between the Minister for Economic and Business Affairs
and A. P. Møller-Mærsk sets the framework for long-term and efficient organisation of the activities in the North Sea until 2042. This agreement is of major importance to Denmark. It will help
ensure the optimum exploitation of Danish oil resources, and will secure considerably higher revenue for the Danish state as well as a higher percentage of current and future production values. It
appears from the statement to the Danish Parliament on the North Sea of October 2003 that additional revenue of more than DKK 2 bn. (euro 270 mill.) is anticipated for the period until 2012.
From 2004 to 2042, the state's share of profits on the activities is estimated at 61 per cent, subject
to certain assumptions with regard to production volumes and oil prices. This represents a substantial improvement over the average 47 per cent share received by the state in the past, and the 40
per cent received in recent years.
Figure 1: Development in DUC’s annual profit from activities in the North Sea, 1984–2042
(2003 prices)
30,0
1984-2003
2004-2042
Mia kr. 2003-priser
25,0
20,0
DUC
Stat
15,0
10,0
5,0
20
38
20
41
20
35
20
32
20
29
20
26
20
23
20
20
20
14
20
17
20
11
20
08
20
05
20
02
19
99
19
93
19
96
19
90
19
87
19
84
0,0
ÅR
Figure 1 shows the development in total profits for the period 1984 – 2042. The figure illustrates
that large profits are expected on North Sea oil and gas production, particularly for the period until
2012. After 2020, profits are expected to decline significantly as resources become depleted and
the operating costs of extracting the final oil rise.
3
Renewable energy resources
Exploitation of renewable energy sources such as wind and biomass is taking an increasingly
prominent position in Danish energy supply. Capacity development with renewable energy installations continued in 2003.
As part of the agreement on the Electricity Reform in 1999, an objective was laid down that renewable-energy-based electricity production in Denmark should represent at least 20 per cent of
domestic electricity consumption by the end of 2003. This objective was achieved, as shown in
figure 2 below. Under normal wind conditions, Danish renewable-energy capacity installed at the
end of 2003 would have contributed about 23 per cent of the national electricity consumption for
2003. The objective has thus been realised.
Figure 2: size of renewable-energy-based electricity production as a percentage of national electricity consumption.
30%
25%
20%
15%
10%
5%
0%
1994
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
Yr
The renewable proportion of national electricity consumption is expected to rise to about 29 per
cent in the years to come, primarily as a result of the two new offshore wind farms decided in the
latest energy policy agreements.
Expansion of renewable energy can contribute to increasing security of supply and ensure continued technological development in Denmark. Renewable energy must be developed so that it can
be produced at a reasonable price when oil and gas reserves in the long term become more scarce
and become increasingly dependent on supplements from other energy sources. The use of renewable energy sources also helps reduce pressure on resources and the environment.
In general, renewable energy today is more expensive than traditional sources of energy, and this
limits the speed at which renewable energy should be expanded. Expansion should concentrate on
the areas with the best prospects in terms of securing continued technological development, and in
4
areas which are particularly promising for Denmark. The goal is that renewable energy should be
able to compete on market conditions.
As a result of the biomass agreement, there has been much expansion within the biomass field
over the past 10 years. The agreement for the central power stations has now been more or less realised. The number of small independent biomass installations, especially wood-pellet boilers is
also increasing, and this expansion is expected to continue. The Danish government will ensure
the quality and environmental properties of the smaller installations through support to testing
smaller biofuel boilers.
2. Development of market frameworks
The frameworks of the energy markets should take account of competitive factors, security of
supply, and the environment.
The energy agreements of 29 March 2004 mean that system operation and overall transmission of
electricity will in future be the responsibility of the state. The objective is to secure efficient operation and expansion of the overall infrastructure and to ensure open and equal access for all users of the grids. In order to improve security of supply and the establishment of well functioning,
competitive markets, a plan will be prepared for the extension of the infrastructure, including
adapting the markets to renewable energy. Implementation of the EU CO 2 allowance system will
help secure frameworks for the markets that will ensure that energy producers continue to take account of the environment in the future.
Security of electricity supply
The power cut on Sealand on 23 September 2003 was a reminder that electricity supply is a vital
part of modern society. Therefore, a central area for the Danish government is to establish a stable
framework for electricity supply that ensures that the public, businesses, and other sectors in society have access to stable electricity supply.
After liberalisation of electricity supply in 2000, the framework for the electricity sector changed.
Electricity transport and distribution are monopoly tasks, subject to state regulation, while electricity production and trade are subject to competition under normal market conditions.
The political task is therefore in two parts. A framework for the monopoly tasks must be established to secure equal access to the grid for all producers under equal and non-discriminatory conditions. This ensures competition for production and it ensures that consumers are able to choose
freely between different producers. This involves creating a stable framework for new investment
so that market forces can secure efficient cohesion between consumption and supply.
The main task is, on the one hand to secure long-term and credible framework conditions that create the necessary confidence amongst investors to make decisions on new investment on the basis
of the expected electricity prices. On the other hand, open and free competition must be ensured so
that a dominant company cannot block competitors out.
5
The system operators play a central role in maintaining an efficient market and in maintaining security of supply. The Danish government will therefore work with the system operators to clarify
the requirements for establishing a stable and long-term framework for security of supply.
Establishment of independent system operation and electricity transmission
As already mentioned, it is important to ensure segregation of ownership between system operation and overall transmission from production and trade so that the conditions for access to the
electricity grid are laid down independently of commercial interests. Therefore, in future the state
will be responsible for system operation and overall transmission as part of general energy policy.
This will take place by the state taking over Eltra, Elkraft System, and Elkraft Transmission from
the grid companies.
The agreement involves the new joint system operation and transmission company "EnergiNet
Danmark" remaining in public ownership. EnergiNet Danmark is being set up by statute as a state
enterprise that will ensure efficient operation and expansion of the overall infrastructure. EnergiNet Danmark can include the normal return for grid companies in its tariffs for future investment, including possible purchases of regional grids. The remaining surpluses will be transferred
back to consumers.
A first right and duty of purchase for the state will be implemented for the regional transmission
grids in connection with direct or indirect transfers. Thus, section 38 of the Electricity Supply Act,
stating that electricity production and electricity trading companies may not own more than 15 per
cent of a grid company, is repealed.
In order to bring capital relationships in the electricity sector into order, the definition of capital as
free equity capital and tied-up equity capital in the electricity legislation will be amended so that
they no longer differentiate between free and tied-up capital.
There is political consensus that the price of electricity cannot be allowed to rise as a result of
these changes in the definition of capital and of the establishment of EnergiNet Danmark. This
will be ensured through new price regulation. Revenue caps will thus not increase due to the modified concept of capital. Thus the interests of the consumers are still being considered. An additional part of the agreement is simpler regulation regarding supply obligation and consumer representation, which harmonises with a well-functioning market.
Future expansion of the infrastructure as part of a long-term action plan
In recent energy policy agreements it has been decided to prepare a national action plan for the future infrastructure up to 2010. The goals are to secure a greater degree of security of supply, to establish well-functioning competitive markets, and to accommodate renewable energy.
6
The action plan will also describe the future energy supply, the interplay and integration of different energy technologies, as well as the perspectives for future energy supply up to 2025, including
use of new energy technologies.
The action plan covers the larger cable links in Denmark and improvement and new construction
of foreign links. On the basis of the action plan, the Danish government will prepare relevant proposals for parliamentary decisions.
Experience of opening electricity markets shows that both a well-functioning electricity market,
and a comprehensive transmission grid that can ensure free movement of energy both domestically
and across national borders are necessary, if production capacity is to be fully exploited. If the
transmission grid is to meet this requirement, there is a need to enhance certain foreign links and
parts of the grid in Denmark.
Before 1 March 2005, the Minister for Economic and Business Affairs will present an action plan
for the future infrastructure.
Reorganisation of subsidies to decentralised combined heat and power (CHP)
About 25 per cent of the total electricity production comes from decentralised combined heat and
power plants. Through better regulation and better use of the decentralised plants, the Danish government wants to ensure a better electricity market for all, including the smaller electricity producers. Therefore, the Danish government will implement a number of changes as agreed in the
recent energy policy agreements. The aim is for the new regulations to enter into force on 1 January 2005.
Subsidies to existing decentralised CHP plants will be reorganised to secure the plants the same
total level of subsidies as under the current three-period tariffs. Subsidies will be regulated in relation to changes in the price of electricity. Heating prices must not increase as a result of the reorganisation.
Subsidies will be set individually for the individual plant so that the total subsidies reflect the size
of the subsidy granted to the plant under the three-period tariff. The subsidy period is 20 years
from the date the plant is connected to the grid, and no less than 15 years from 1 January 2004. A
2-year transitional scheme will be established for plants of less than 10 MW and a special flexible
scheme for the small plants of less than 5 MW.
The Heat Supply Act will be amended so that for the moment the decentralised CHP plants cannot
exchange taxable fuels with tax-free fuels in peak periods and when using reserve capacity. Plants
are already prohibited from using coal.
Making wind energy market-oriented
Part of the political agreements removes the duty to purchase production from wind turbines. This
is replaced by a subsidy scheme that will secure owners of wind turbines unchanged prices in accordance with the relevant transitional schemes. Moreover there will be a simplification of the
7
calculation of the market price plus subsidy. This must not exceed DKK 0.36 per kWh for wind
turbines that are no longer covered by the transitional schemes. The changes mean a more flexible
market system for the benefit of both the producers and consumers. The latest energy policy
agreements have also achieved agreement on securing the basis for constructing two offshore
wind farms, each of 200 MW.
Danish enterprises hold a leading international position in the construction of large offshore wind
farms. A good domestic market will contribute to ensuring that the wind turbine industry maintains its significant presence in the rapidly expanding global market to the benefit of continued
commercial development and employment.
Construction will take place following a tender process and it is anticipated that areas at Horns
Rev and Omø Stålgrunde will be used. The final decision on the location of the wind farms cannot
be taken before completion of an environmental impact assessment. The tender process will be
carried out as a negotiated procedure. This means that at first a prequalification of interested investors will be carried out before tenders are issued. After this a contract will be entered into with
the firm issuing the cheapest tender for the individual contracts.
In accordance with the current principles, EnergiNet Danmark is to pay the net construction costs
of the wind farm. No tariff ceiling on the electricity produced is decided in advance. Furthermore,
the Electricity Supply Act will be amended to allow mortgage-credit financing. The executive order for the procedure will be made public in early June 2004 with a view to a final contract no later than early December 2004. The goal is to open the new wind farms for operation in 2007/08.
New scheme to dismantle old wind turbines
A part of the energy agreement is a scheme for dismantling old wind turbines. It aims at both expanding wind energy, and improving the landscape through remediation of areas with many older,
poorly sited wind turbines. The scheme will involve dismantling about 900 old wind turbines of
up to 450 kW.
The scheme aims at establishing new capacity of up to 350 MW over the next 5 years, but with far
fewer turbines.
The Minister for Economic and Business Affairs will direct applications to regional planning authorities and municipalities to designate areas for re-siting wind turbines in connection with the
scrapping scheme.
Biogas
As part of the agreement, new settlement regulations will be introduced for biogas plants. A settlement model will be set up to support future biogas plants constructed before the end of 2008.
There will be an overall ceiling corresponding to twice the current capacity. Tariffs will be DKK
0.6 per kWh for a period of 10 years, followed by DKK 0.4 per kWh for a further 10 years. It is
expected that this will mean the construction of 40 new biogas plants.
8
Research and development
Research and development activities are important for the competitiveness of Danish industry. For
many years, Danish industry has demonstrated ability to play a prominent role internationally in
developing new energy technologies. Research activities in the energy area must therefore underpin the existing prominent positions of Danish enterprises and promote development of new ones.
The energy policy agreement of 29 March 2004 on wind, decentralised CHP, etc. foresees that
EnergiNet Danmark will continue research, demonstration, and development tasks in order to develop an environmentally friendly and safe electricity system in Denmark. The economic framework for research by system operators will be increased by DKK 30 million to a total of DKK 130
million per year for a 4-year period.
A considerable proportion of funds will be applied to the completion of research, demonstration,
and development activities aimed at managing the electricity supply systems and electricity consumption through modern communications equipment and automisation. This will include completion of pilot projects on the use of photovoltaic cells, development of storage technologies in
connection with solar thermal systems, hydrogen technologies, refrigeration technologies, and
other promising technologies.
It is a priority for the Danish government that new energy technologies be developed in cooperation between private and public entities. A close partnership provides better opportunities for optimal returns on investments in research and innovation.
In order to achieve the most efficient use of subsidy funds, the Danish Energy Authority and electricity companies have together set up research strategies for several technology areas. So far,
strategies have been prepared for research and development within biomass for CHP, fuel cells,
photovoltaic cells, and wind energy.
In cooperation with the stakeholders, the Danish government will continue to elaborate the crosscutting criteria and strategies, thus enabling efforts to be prioritised according to their ability to
best support the development of future energy systems in Denmark.
3. Climate
The Danish government finds it important for Denmark to meet its international climate commitments. This means that Denmark must reduce greenhouse gas emissions by 21 per cent in the period 2008-12 compared with the 1990 level. This is an extremely ambitious commitment, and
therefore it is crucial to complete the task as cost-effectively and as flexibly as possible. Otherwise, unnecessary losses will be inflicted on both the Danish economy and Danish enterprises.
Allowances on CO2 emissions
The Danish government's climate strategy of February 2003 set the framework for a new direction
in Danish climate policy. The bill on CO2 allowances recently presented by the Government im9
plements the central instrument. The Danish allowance allocation for the trial period 2005-07 is a
balanced solution which takes account of both competitiveness and the environment.
The allowance system opens up for entirely new opportunities for enterprises' climate measures.
The scheme covers electricity and heat production, as well as large energy-intensive industrial
companies. Allowances are allocated in such a way as to keep heating prices constant if consumption remains unchanged. The system provides the individual enterprise covered by the scheme the
possibility to continuously minimise the costs of CO2 initiatives for the benefit of both the environment and finances. Enterprises can implement CO2 reductions internally when this is most appropriate, and they can buy allowances from other enterprises when this is more appropriate. A
proposed amendment to the allowance directive is expected to be finalised in the near future, and
this will introduce further flexibility. The proposed amendment means that project credits earned
on completion of projects in other countries can be used by enterprises on equal terms as the allowances issued under the EU allowance system.
In a market subject to CO2 allowances, wind energy and other renewable sources will have a competitive advantage over installations producing electricity using fossil fuels.
4. Energy efficiency
The efforts by the Danish government to improve energy efficiency emphasise both consumer
considerations, competition between technologies and solutions, cost effectiveness, and long-term
benefits for society. From a consumer perspective, improved energy efficiency will help reduce
energy bills. Improved efficiency of energy consumption reduces demand in the northern European markets and thus contributes to a cleaner environment. Through reductions in consumption of
resources, continuous improvements in the way energy is used can make an important contribution
to the long-term energy policy challenges for the environment and security of supply.
In the shorter term, more flexible energy consumption in particular can lead to improvements in
security of supply. Therefore, it is important that many energy consumers are able to react to market prices. This is not the case today. Demand for electricity is inflexible and prices in the electricity market vary considerably. More flexible electricity consumption can reduce the peak loads that
are very expensive for society. Therefore, the Danish government will ensure that the trials in progress in the area are followed up.
Just as other energy policy, initiatives for cost-effective energy consumption should be regarded in
an international framework. International initiatives are becoming ever more important for Danish
energy policy. Internationally coordinated initiatives ensure greater influence with producers and
provide greater savings at lower cost. They also ensure that measures do not affect the competitiveness of Danish enterprises. Therefore, the Danish government will work actively for common
instruments within the EU to promote energy conservation.
Despite considerable economic growth in Danish society, for many years it has been possible to
keep gross energy consumption more or less constant, as shown in figure 3 below. Energy intensi10
ty, ie. energy consumption in relation to the size of gross national product, has thus fallen dramatically. This is due to improved efficiency in energy consumption at the end user, and more efficient
energy supply, partly as a result of greater use of combined heat and power.
Figure 3: Changes in energy consumption and energy intensity from 1975 to 2003
Index
120
110
100
90
80
Gross energy conservation
70
Energy intensity, energy consumption in relation to GNP
60
1975
1979
1983
1987
1991
1995
1999
2003
Yr
Note: corrected for annual temperature differences and for fluctuations in foreign trade in electricity
An open, consumer friendly system
Individuals should have clear knowledge of their energy consumption with informative bills and
visible consumption. Moreover, the Danish government places priority on access to complain if
energy bills are not as expected. Consumers should have access to simple and clear information.
In mid 2004, it is expected that a private complaints board will be established with representation
from the electricity, gas, and heating sectors. The board will address specific complaints from
consumers in the energy area. The Danish Energy Regulatory Authority will continue to carry out
general public law supervision of compliance with energy legislation.
The Government's ambition is that it should be easy and manageable for busy consumers to
choose energy-efficient products that meet their own and their families' needs.
There is a need for effective information, such as energy labelling, as part of cost-effective promotion of energy-efficient solutions. This works. Sales of A-labelled appliances have increased significantly in recent years. At the same time, measures have promoted the development of even
more efficient products, especially fridges and freezers. The Danish government will support this
positive development and therefore it has granted DKK 20 million to an extensive campaign to
promote sales of especially efficient fridges and freezers. The money is coming from taxes on exceeding CO2 allowances in the electricity sector.
The Danish government will work actively to adopt and implement the directive on Eco design.
The directive includes the possibility to set common European standards for the electricity consumption of products. These standards could realise considerable savings in a cost-effective manner.
11
The electricity grid companies and the Electricity Saving Trust are carrying out a large number of
activities to make it easy for consumers to identify attractive savings opportunities. The Danish
government places priority on making these activities as cost-effective and consumer-friendly as
possible. Therefore, an overall assessment of efforts has been initiated.
Amongst other things, the assessment should be regarded in relation to the proposal from the
Commission for a directive on energy end-use efficiency and energy services, which could help
enhance energy-savings efforts within the EU as a whole on a commercial basis. The Danish government will enter positively into discussions on the proposal, and as part of this it will regard an
indicative target for energy efficiency and savings as a constructive step. One requirement is that
the instruments to meet the target are cost-effective and that there is room to take into consideration the results already achieved by individual countries.
Action plan for stand-by consumption
In January 2004, the Danish government presented an ambitious action plan to reduce the unnecessary energy consumption by appliances on stand-by. By 2010, stand-by consumption for relevant new products on the market must be down to 1 Watt or less. This is a great improvement
compared with the average today.
The initiatives will be implemented either this year or next year. Agreements include a new
framework for energy-correct procurement by the public sector. Another focus area is a new lowenergy label for use by the Danish Energy Authority, The Electricity Saving trust, and the electricity grid companies in connection with a number of products.
Making buildings more efficient
In February 2004, the Danish Energy Authority entered into a sector agreement on phasing out
traditional double glazing and promoting more energy-efficient window solutions. The agreement
ensures that the traditional double-glazing, with its large energy losses, is replaced by energyefficient glazing. This is economic feasible for society and for the individual. With respect to consumers, energy-efficient windows mean lower heating bills and improve comfort. The investment
is often recovered in very few years. The Danish government has also earmarked DKK 20 million
in the Finance Act to ensure broader efforts to promote energy-efficient window solutions, ie. also
window frames and removable double-glazing.
During 2004 the Danish government will present a proposal to tighten energy provisions in the
building codes. The proposal is part of the implementation of the EU building directive. This
tightening will ensure that new buildings meet the standards of the future. At the same time, it will
contribute to energy improvements when existing buildings are restored or refurbished.
As part of the implementation of the directive, the scheme for house labelling will be reorganised
in order to make it more user-friendly and more effective. At the same time an energy service and
inspection scheme for boilers and ventilation equipment will be established. In this connection the
12
Danish government will complete a special initiative to promote energy-efficient oil and gas boilers and circulation pumps in 2004 and 2005.
Action plan for more energy efficiency and energy conservation
In accordance with the political agreement of 29 March 2004, before the end of 2004 the Minister
for Economic and Business Affairs will present an action plan for more energy efficiency and energy conservation.
The action plan will be related to the initiatives and assessments already in progress, including in
particular the assessment of energy-savings measures by the electricity grid companies, gas companies, and Elsparefonden, as well as implementation of the EU building directive. The Action
Plan will also be based on the long-term energy policy challenges. In accordance with the agreement, energy conservation in existing buildings and use of energy-efficient appliances will be a
special action area in the plan.
13