Denmark has virtually no waterpower, and no nuclear power plants. In the 1990s, the government launched a major initiative aimed at developing wind power generating capacity. By 2000,83.9% of all electric power came from fossil fuels, less than 1% from hydropower, and the remainder from other sources, mostly windpower production. Some domestic lignite and peat are used, and diesel power is employed in some small energy-generating plants, but the main sources of energy are imported coal and fuel oil, with the use of wind generation increasing. Municipal plants predominate in the cities and towns, and cooperative-owned plants are prominent in rural districts. In 2000, 34.1 billion kWh of electricity was generated; total installed capacity in 2001 was 12,654 MW. Consumption was 33.9 billion in 2000.
Between 1990 and 1995, Denmark's primary energy consumption rose by nearly 19%. As a result of the slow rate of progress in developing Denmark's North Sea gas and oil resources—exploratory drilling had been conducted in fewer than 25% of the fields by the end of 1980—the Danish government in 1981 decided to nationalize most of the fields. The Gorm oil and gas field, with estimated oil reserves of 100 million tons, went into production in mid-1982, and indications of additional hydrocarbon deposits were found nearby during 1983. By 1990, the Gorm Field's cumulative output was 12.7 million tons. Production of oil in 2000 totaled 367,000 barrels per day; proven reserves were estimated at 1.11 billion barrels at the beginning of 2002.