Danish companies will be looking far and wide for new targets and support schemes that will help them switch from fossil fuels to green electricity. This is the blunt message from Minister for Climate, Energy and Utilities Lars Aagaard (M), who rejects a central wish from large parts of Danish business. This is reported by Finans.
- I know that there are many who would like subsidies to take a risk, but in my opinion, you have to be careful here, says Lars Aagaard, who is Minister for Climate, Energy and Utilities.
Business organizations such as the Confederation of Danish Industry, the Confederation of Danish Commerce and Industry and Green Power Denmark have long called for an electrification strategy with clear targets and support schemes that can increase the demand for electricity. But the minister denies that there is a need for a separate strategy, and points out that the government has already introduced several measures – including lower electricity taxes, a CO2 tax for industry and low taxes on electric cars.
At the same time, the state is ready to spend up to 55 billion DKK in support for three new offshore wind farms. This will be done via a CfD model, where producers receive a guaranteed minimum price for the electricity – even when the turbines are idle. However, the minister does not believe that support for production should be followed up by support for consumption. He maintains that the market itself must create demand when electricity prices fall as a result of the increased expansion of green energy. Several business representatives and experts warn, however, that companies are hesitant to invest in electrification as long as there is uncertainty about prices and security of supply.
Despite the criticism, Lars Aagaard is standing firm. He does not want to spend billions of tax dollars to support companies' green transition, which he believes they must take responsibility for themselves.
amp
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
