VZCZCXRO7527
RR RUEHIK
DE RUEHCP #0097/01 0500905
ZNR UUUUU ZZH
R 190905Z FEB 10
FM AMEMBASSY COPENHAGEN
TO RUEHC/SECSTATE WASHDC 5527
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHMO/AMEMBASSY MOSCOW 1556
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS SECTION 01 OF 02 COPENHAGEN 000097 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR:DAS QUANRUD, EUR/NB, EEB/HSC/IEC 
 
E.O. 12958: N/A 
TAGS: ECON ENRG ECIN EPET PREL DA RS XG
SUBJECT: DENMARK SUPPORTS EUROPE-WIDE APPROACH TO ENERGY 
SECURITY 
 
REF: 09 COPENHAGEN 521 
 
COPENHAGEN 00000097  001.2 OF 002 
 
 
(U) SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1.  (SBU) SUMMARY: Danish Energy Agency (DEA) Deputy Director 
General Anne Hoejer Simonsen told EUR Deputy Assistant 
Secretary Pamela Quanrud in a February 10 meeting that 
Denmark continues to pursue energy security as a top national 
priority, and that greater EU energy interconnection is in 
Denmark's interest.  Denmark anticipates that rigidity in EU 
electric transmission arrangements will ease with the 
implementation of the Treaty of Lisbon and believes that the 
EU should pursue grid expansion more aggressively.  New EU 
members in Central Europe present a particular dilemma with 
regard to energy security, in part because of price subsidies 
that encourage over-consumption and discourage efficiency. 
Simonsen said ensuring all European consumers pay at least 
market prices for energy is "the key to energy security." 
Denmark is actively watching Russia, both in terms of 
Russia's control of gas flows in Europe, and whether Russia 
will be able to continue to deliver sufficient gas supplies 
to Europe in the face of aging infrastructure and increased 
deliveries to Asia.  With regard to the Baltics, Denmark has 
hosted extensive visits by Baltic Energy Market 
Interconnection Plan (BEMIP) participants, but has not 
engaged in intensive meetings within the BEMIP framework; DAS 
Quanrud encouraged more Danish involvement.  END SUMMARY. 
 
¶2.  (SBU) Danish Energy Agency (DEA) Deputy Director General 
Anne Hoejer Simonsen recounted Denmark's experience in 
achieving energy security, laid out the way forward in 
maintaining that security, and reiterated Denmark's support 
for an integrated European energy security approach, during a 
discussion with EUR Deputy Assistant Secretary Pamela Quanrud 
on February 10.  Since the 1970s, energy security has been a 
top national priority in Denmark (reftel).  Denmark achieved 
energy independence in the 1990s and Simonsen said that a 
strong consensus persists among Danish leadership (both 
government and opposition) that maintaining energy security 
despite diminishing Danish North Sea oil and gas reserves 
must be at the top of the national agenda.  This includes 
broad agreement on a commitment to maintaining high energy 
costs for Danish consumers as an incentive to increase energy 
efficiency.  It also includes working towards broader 
European energy security.  Denmark is using its position as a 
"front runner" on energy security to influence European Union 
energy policy; Simonsen said that the 2008 EU energy policy 
reflected "all of Denmark's wishes."  Denmark will soon 
outline a strategy on how to gain complete independence from 
fossil fuels by around 2050.  The Danes proudly regard the 
last 35 years as a complete energy revolution in Denmark, but 
anticipate that the country will need to undergo another 
complete revolution in the coming 35 years to maintain its 
position as an energy leader. 
 
¶3.  (SBU) Simonsen characterized EU energy interconnectivity 
as in the Danish interest.  She outlined several specific 
projects to increase natural gas storage and expand gas and 
electricity connections to broader European networks in which 
Denmark is participating.  She called increased EU investment 
in the expansion of natural gas networks and electric grids 
"wise," and said that energy infrastructure investment is 
"always a net positive."  However, Denmark believes that the 
expansion of electric grids should be receiving more 
attention than the expansion of natural gas networks, as 
there can be greater diversity of supply for electricity and 
it can be used for heating just as well as natural gas. 
 
¶4.  (SBU) Simonsen opined that the energy policy provisions 
in the Treaty of Lisbon will enable member-state governments 
to pressure national electric transmission monopolies to 
become more efficient, helping to ease some of the rigidity 
that has characterized electricity transmission in Europe and 
open the path to more efficient interconnection of renewable 
energy sources.  The common EU energy policy is having 
another benefit: as member countries are being required to 
submit their plans for attaining EU carbon reduction targets, 
the plans are being evaluated in Brussels to ensure that 
multiple countries are not relying on the same renewable 
sources and that adequate renewable supplies will be 
available to achieve the EU carbon commitments. 
 
¶5.  (SBU) The new EU members in Central Europe present 
particular difficulties for attaining European energy 
security, according to Simonsen.  Denmark believes these new 
members must be fully integrated into the EU, and thus seeks 
 
COPENHAGEN 00000097  002.2 OF 002 
 
 
opportunities on all matters to include them and cooperate 
with them.  However, she was pointed in her criticism of 
policies throughout the region that subsidize energy costs 
for local consumers, which leads to uneven gas pricing across 
the EU, as well as encourages over-consumption and 
discourages efficiency in the new members.  Requiring that 
all European consumers pay at least actual market prices for 
energy is "the key to energy security," she said.  She also 
noted the lack of transparency in contracts for new energy 
infrastructure to connect eastern EU members with western 
networks.  In Denmark's view, the European Commission must 
play a more active role in ensuring transparency in these 
contracts and ensuring that a minimum supply of energy be 
available to all member states. 
 
¶6.  (SBU) On Russia's influence on European energy security, 
Simonsen said discussion within the Danish Ministry of 
Climate and Energy is "very vivid -- it is what is in focus." 
 (Comment:  This renewed focus on Russia and European energy 
security comes largely, though not entirely, from 
newly-appointed Minister of Climate and Energy Lykke Friis, 
whose background as a European security and EU expert has 
been apparent in her early statements that energy security is 
at least as much a priority as climate concerns.  End 
Comment.)  Denmark is concerned not only about the threat 
that Russia might cut off gas to Europe, but also whether 
Russia will be able to meet delivery obligations as its 
natural gas infrastructure deteriorates and it sends more gas 
to China.  On Danish approval of Nordstream, Simonsen said 
that the question was basically a technical one for the DEA. 
In the Danish view, Denmark was obligated under international 
law to approve construction through its territory as long as 
all environmental and security concerns were adequately 
resolved.  DAS Quanrud emphasized that the U.S. is not 
opposed to Nordstream or any other route for energy to flow 
to Europe.  Simonsen called conflicts over Nordstream between 
Germany and Poland "a political game too grand for Denmark." 
The Danes believe that once there is new gas flowing through 
the pipeline, it will be in all EU member states' interest to 
ensure that the gas is appropriately distributed. 
 
¶7. (SBU) DAS Quanrud asked Simonsen about Danish 
participation in the Baltic Energy Market Interconnection 
Plan (BEMIP).  Simonsen replied that Denmark has hosted 
extensive visits by BEMIP participants, but has not engaged 
in intensive meetings within the BEMIP framework.  Denmark 
has become expert in sharing information on how to establish 
smart electricity transmission systems that efficiently 
incorporate wind and other forms of renewable energy, and is 
open to becoming more active in sharing this knowledge with 
BEMIP countries.  DAS Quanrud encouraged the Danes to become 
more involved in BEMIP and invited Denmark to consider making 
a presentation at the upcoming BEMIP meeting this spring on 
incorporating renewables. 
 
¶8.  (U)  DAS Quanrud cleared this message. 
FULTON