The political importance of energy cooperation between Germany and Denmark on the European Union energy market

Department of Economics, Faculty of Management, Rzeszow University of Technology, al. Powstancow Warszawy 8 street, 35-959 Rzeszow, Poland

^a Corresponding author: Mariusz Ruszel PhD, mruszel@prz.edu.pl

Abstract

Denmark and Germany have similar goals of energy transition. Both states are going to implement a policy that is aimed at the transition from a fossil fuel-based system towards a renewable energy system with variable renewables generation. The main objective of the German energy transition is to cover more than 80% of the energy consumption with renewables by 2050. For comparison, Denmark is going to build a fossil fuel-free system, which would be able to cover 100% of energy consumption with renewables by 2050. To this end, stronger cooperation between Germany and Denmark could enhance the position of both countries on the EU energy market. The main aim of this paper is to analyse the impact of the energy cooperation between Germany and Denmark. It is crucial to answer the question of how both states could build a stronger energy position and which tools would be useful in this regard. Denmark is the world’s leader in the deployment of wind power, which is also implemented in the northern part of Germany. For this reason, both states have similar challenges with respect to the stabilisation of electricity systems. The current and prospective integration of energy systems of both countries is also important for the improvement of energy security. It is also crucial to answer the questions whether the energy integration will have political implications for both countries, and whether stronger energy cooperation between Germany and Denmark will strengthen the competitive advantage of German economy in the EU.