European Energy releases white paper on renewable energy in Denmark

European Energy has launched a white paper revealing a range of challenges for renewable energy in Denmark, including the fact that green electricity is taxed more heavily than fossil fuels.

A new white paper from European Energy highlights the severe obstacles slowing the development of onshore wind and solar energy in Denmark. A year after the first edition of the white paper was released, the situation has only become more critical.

Today, green electricity is subject to higher taxes in Denmark than fossil fuels such as gasoline, diesel, and natural gas. This creates a bottleneck for the green transition. Key challenges include:

• Soaring grid connection costs: The introduction of producer fees on January 1, 2023, has made grid connections significantly more expensive. For some projects, grid connection costs account for up to 60% of the total establishment costs of a renewable energy park.
• Negative electricity prices and low electrification rates: In 2024, Denmark experienced a record number of hours with negative electricity prices. This is partly due to higher taxes on green electricity compared to fossil fuels. As a result, electrification in Denmark remains low, far from the goal of self-sufficiency in green energy.
• Uncompetitive energy prices: According to the Draghi Report, electricity prices in Europe are 2.5 times higher than in the U.S. and China. While energy policy in these countries is closely linked to industrial policy, Danish energy policy appears to be more focused on tax policy.

“Denmark should aim to run on 100% green electricity as soon as possible, but currently only 15-20% of our society is electrified. We must also strive for a leading position—not just in Europe, but globally—in developing and deploying renewable energy projects,” said Knud Erik Andersen, CEO of European Energy.

“The most important action right now is to address the consumer side by reducing electricity taxes. Today, it doesn’t make sense for ordinary Danes to switch from gas boilers to heat pumps. It’s baffling that we are effectively hindering the green transition of our society in this way.”

Recommendations for action

The updated white paper presents 10 concrete recommendations to restart the development of onshore wind and solar energy in Denmark. These include proposals for reforms aimed at reducing costs and promoting electrification, enabling Denmark to reclaim its position as a green leader in Europe.

Read the white paper here. (in Danish)

Contact

Ming Ou Lü

PR Manager

+45 3126 9376

miol@europeanenergy.com