The Danish parliament has agreed to a package of measures that puts the country on a path to sourcing of all of its energy needs from renewable sources by 2050.

The country’s government said that the plan was the “broadest, greenest and most long-term energy agreement” it had ever reached. It will wean the country off fossil fuels but is designed to keep energy prices low by promoting energy efficiency alongside technology advances such as smart grids, renewable heat and biogas.

The agreement implies a 12 per cent reduction in gross energy consumption by 2020 compared with 2006 levels and a 35 per cent share of renewables in energy by 2020. The wind energy sector will be expanded to account for 50 per cent of electricity consumption by 2050.

Denmark’s minister for climate, energy and building said that the plan would make the country a global leader in green energy, and would also stimulate the growth of green jobs.

The agreement could provide impetus for the on-going green agenda debate in the European Union and is also a boost for the region’s renewable energy sector.

In the wind energy sector, Denmark will install 1500 MW of offshore capacity by 2020 as well as around 1800 MW of onshore capacity. New planning tools will be implemented to encourage the development of the sector, although subsidies for wind turbines will be capped to prevent over-development of the sector.

The Danish government says that it will commit a total of DKK100 million to the development of new renewable energy technologies as well as DKK25 million for wave power demonstration facilities.