The agency said in a statement on Monday that it had issued the alert amid uncertainty on energy imports from Russia because of the ongoing war in Ukraine.
The decision by the energy agency was made after Russia reduced its gas deliveries to Germany by 60 percent.
“We are in a serious situation and it has been made worse with reduced deliveries from Russia to the European gas market,” Energy Agency deputy director Martin Hansen said in the statement.
“We are following developments on the gas market closely. We are still receiving gas in Denmark and we have plans to ensure customers (receive it). We are fortunately in a robust position in Denmark because we have a lot of green energy,” he said.
The Danish agency on Monday moved Denmark to the bottom rung of the European Union system allowing member states to flag up impending energy supply difficulties using three ascending levels — beginning with “early warning”, followed by “alert”, then “emergency”.
With “early warning” declared in Denmark, gas market actors can begin to prepare for a potential shortage.
Gas stores in Denmark are currently 75 percent full and should be at least 80 percent full from November in line with EU targets.
In the event that Denmark does find itself in a gas crisis, the country has an emergency plan ready to implement, Minister for Energy and Critical Supplies, Dan Jørgensen, said.
“We are prepared if an emergency situation occurs. We are not at that stage yet, but we are prepared,” Jørgensen said.
The Danish plan could involve asking companies with the highest gas consumptions to cut off their gas supplies fully or partially for a period of time.
The Energy Agency has been in dialogue with companies on how they could be asked to contribute should a crisis occur.
“Most companies which are heavy gas consumers have plans in place to replace gas, but we will renew contact with companies to hear what authorities can do to help them,” Hansen said.
The Energy Agency and the minister both encouraged private individuals and businesses in Denmark to save on gas where possible.
“We are in the process of filling our gas stocks and getting Denmark ready for all situations,” Jørgensen said.
The minister also said that international geopolitical developments could impact the situation in Denmark.
“One (possibility) is that Russia completely switches of gas supplies to Europe. The other is, we choose to say that we no longer want to receive it,” he said.
Denmark should be equipped to cope with a potential crisis in either case, he said. Jørgensen added that the Tyra oil field, in the Danish sector of the North Sea will be reopened in mid-2023.
“From there, we will be self-sufficient,” he said.