The purpose of this analysis is to shed light on the additional socio-economic costs of a full phasing out of wood for electricity and heat production in Denmark in 2030 and the entire period up to 2050. Wood-based heat production is replaced by heat pumps and electric boilers, while wood-based electricity production is assumed to be replaced by offshore wind turbines and biogas-based gas turbines as backup power. The new electricity and heat production generally has lower costs for fuel and electricity as well as operation than the wood-based system, but the conversion requires large investments in the start-up.

The latest climate projection, KF25, assumes that wood energy consumption for electricity and district heating production will almost be halved by 2050, and part of the additional costs of a wood stop as early as 2030 will therefore come from an accelerated wood phasing out.