The seven municipalities that make up the Business Region MidtVest receive a total of 42.6 million DKK from the state's 'Coherence and Balance' fund, which distributes 200 million DKK to municipalities with green energy plants. The recognition is a source of joy among the municipalities, but they are also critical of the fact that the amount is part of the municipalities' existing block grants, and that it is therefore not new funds for green transition.
- It is entirely deserved that municipalities that make land available for renewable energy receive a helping hand. Because it requires a lot - both from the municipality and the citizens. The municipality must be responsible for local plans, case processing and citizen involvement, while the citizens must accept major changes in their immediate area. It is far more than just making a piece of land available, says Dorte West (V), chairman of Business Region MidtVest and mayor of Herning Municipality, in a press release.
But it is not enough when the money is taken from the block grant, believes the Herning mayor.
- When the funds come from the block grant – the joint municipal pool – it means that some municipalities pay for others to be recognized. It is redistribution, not investment. We call for new funds to be put on the table so that the municipalities that are at the forefront receive real and fair recognition without it happening at the expense of others, emphasizes Dorte West.
Together with 18 other mayors, the North Jutland Region and the Council for Green Transition, Business Region MidtVest therefore continues to call for a green development contribution financed via the electricity tax. It should add over 500 million DKK annually to municipalities depending on the amount of green electricity they produce.
KL has also previously criticized the financing model.
- It is really good that there is an incentive for municipalities that are at the forefront of the green transition. But it is also no secret that the financing model is definitely not something that has grown in our backyard, says the chairman of KL's Climate and Environment Committee, Johannes Lundsfryd Jensen (S).
Praise for taking existing capacity into account
The pool for the green municipalities stems from the government's proposal for rural districts. At the time, there was concern that the new green pool would only reward those municipalities that had set up new capacity in the past year, which meant that municipalities that were perhaps further along would not benefit from their previous efforts.
Therefore, the mayors in the region praise the government for having listened to the alliance's call to reward not only new, but also existing production capacities.
The government has decided that in the period 2026-2035, 200 million DKK will be distributed annually, with the funds in 2026-2030 being based half on newly connected renewable energy and half on production from existing plants.
- It is crucial that we reward not only new investments, but also the municipalities that have long borne the burden of developing green energy. We have been asking for this for a long time, and it is positive that the government has taken it on board, says Dorte West.
The funds paid out from 2025 to 2030 can be used flexibly for the municipalities' green transition work without being earmarked for specific projects. From 2031-2035, the distribution will be based solely on new capacity.
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