Abstract Strategic Energy Planning is a relatively new concept within public administration. Through the last couple of years it has become a buzzword in the energy sector. Politicians and experts recognise Strategic Energy Planning as a new tool to avoid sub-optimisation where the resources are not used fully. But the fact is that there are no traditions inside the Danish public administration as how to organise Strategic Energy Planning. Therefore, the state must invent a new way to manage this particular policy area. And, the state has, during the past three years, tried out new tools to captivate the attention of the self-governing municipalities. The Danish Energy Agency has, through the political energy agreement, set up a SEP-fund, which is now completed. The fund has given the municipalities the opportunity to seek out economical resources to create cross-organisational partnerships within Strategic Energy Planning. It is of great importance that the state, through its actions, considers its own political goals of reaching 100 % sustainable energy by year 2050. So therefore, the question is whether the state has succeeded in using the right tools to attain the political goals. So the motivation for this report is to answer the questions mentioned below: What form of governance of the municipalities is there in the energy policy area, and how does this form of governance ensure that Denmark achieves its political goal of becoming fossil free by 2050? At first, this report will try to answer which form of governance the state is using towards the municipalities, and next, the report will answer the question of whether this form of governance is enough if Denmark is to attain the goals of becoming fossil free by 2050. The problem is investigated through a case study on how the state is trying to govern through different kinds of governance modes. This includes qualitative interviews, with representatives from local as well as national level, and a literature study of legislation and documents published in connection with the SEP-fund. The literature study of legislation also involves consolidation Acts where the municipalities are influenced. The theoretical basis of this report builds on the thoughts of Bell & Hindmoor and Klijn & Koppenjan. Both couples has a state-centred approach to governance and, therefore, the questions mentioned above will be answered through the conviction that the state is strong, and has a lot of governance tools it can use to succeed with its goals.