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Green Power Denmark sees good steps in the Finance Act, says Kristian Jensen. (Archive photo.)
Asger Ladefoged/Ritzau Scanpix

Green Power Denmark: Finance Act agreement provides economic relief and green gains

The abolition of the electricity tax for two years means lower electricity bills and higher disposable income for Danish households – especially for those with the lowest incomes.  
23. OKT 2025 15.01
Politik
Økonomi

As part of the budget agreement, the government and the Conservative People's Party have decided to remove the electricity tax for two years. This makes it both cheaper for consumers to use electricity and more attractive to choose electricity over oil and petrol. An average household will save around DKK 3,600 annually when the electricity tax is reduced from 0.72 øre to 0.8 øre per kilowatt-hour from 1 January. This is reported by Green Power Denmark, where CEO Kristian Jensen is delighted with the reduction, but is annoyed about one thing.

- If we are to find the little hair in the soup, it is of course a pity that the government and the Conservatives have only found money to remove the electricity tax for two years, but it is a good start after all.   We will work hard to ensure that the electricity tax is abolished permanently, he says.

When the tax is removed, electricity will also become a more attractive choice for both transport and heating. According to the organization, this can further accelerate the green transition, says Green Power Denmark.

- It is now becoming very clear to consumers that electricity is by far the cheapest alternative as fuel for the car and heating the house. I expect that this will further accelerate the green transition, says Kristian Jensen. says Kristian Jensen.

The Conservatives have also ensured that the tax exemption for electric cars is extended by one year. An expert group will also examine a more permanent model for car taxes. The budget agreement also contains 500 million DKK for heat pumps and 850 million DKK for expanding solar cells and wind turbines on land, all of which is water for Green Power Denmark's mill.

- Overall, it is a great budget agreement that strengthens the green transition. The path towards a greener and safer Denmark goes through increased consumption of Danish-produced cheap electricity, says Kristian Jensen.

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