A new report from the Economic Council - the Ministry of Economic Affairs' independent advisory body - sharply criticizes the government's decision to provide state aid of up to 55 billion DKK to three offshore wind farms in the North Sea and Kattegat. The experts call the aid socio-economically inappropriate and question the political justifications behind the agreement. This is reported by Berlingske.
- Greenhouse gas reductions and independence from natural gas should not be arguments for state aid for offshore wind. These objectives are achieved more economically through taxes, the experts write in their report.
The experts' criticism adds to growing concerns among players in the green energy sector, especially those working with solar and wind energy on land. Companies such as Eurowind Energy and European Energy fear that a fixed minimum price for electricity from offshore wind will push down electricity prices and impair the economics of their own projects.
A leaked memo from the Ministry of Climate, Energy and Utilities, which Berlingske has seen, confirms this concern. Here, officials estimate that electricity prices from onshore solar and wind energy could fall by at least ten percent by 2035 as a result of the planned offshore wind projects. The government has previously explained the state aid with the need for more green electricity, after the largest Danish tender for offshore wind ever had to be abandoned when no one bid.
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