A bomb has hit Danish plans for offshore wind farms with a total effect of more than ten GW on Monday. The Danish Energy Agency has put the open door scheme on hold, as the Ministry of Climate, Energy and Supply assesses that offshore wind turbine projects and other renewable energy projects under the scheme may be in breach of EU law.
News bring a big surprise at Green Power Denmark.
- This is completely unheard of. The government suddenly slams the door to the green transition with a bang that sends shock waves through the entire green energy industry. The companies have done a huge preparatory work and are ready to build more green energy, and then the government pulls the plug on the 'open door' scheme at the 11th hour. It's simply not right. It is a break in the way we have historically conducted energy policy in Denmark and creates enormous uncertainty about green investments, says Kristian Jensen, CEO of Green Power Denmark and continues:
- The decision is a huge blow to our climate ambitions. Now we are only left with the planned nine gigawatts of offshore wind, for which tenders have not started at all. At the same time, we see that the expansion of wind turbines and solar cells on land is creeping along. We are in a situation where we urgently need green power for our 2030 climate goals, Power-to-X ambitions and goal of becoming a net exporter of green power.
The branch organization Brintbranchen is also concerned about the sudden stop.
- It is hugely problematic that the case processing of the open-door scheme is now put on hold. Rules, including state aid rules, must of course be observed, but in the end this is yet another man-made obstacle to us being able to establish the renewable energy we urgently need, says Tejs Laustsen Jensen, Director of the Hydrogen Industry, who at the same time calls for that the Danish government and the EU Commission find a solution very quickly.
The rhetoric is sharper at Dansk Industri (DI).
- This is a definite disaster and potentially the biggest obstacle to the realization of the green transition in Denmark, says Lars Sandahl Sørensen, who is CEO of DI, and continues:
- It is shocking that private companies that provide billions in investments and take enormous risks have been misled by the state. The scheme has been known for almost 25 years, and only now is it being disapproved, he says.
Process should be able to continue
At Green Power Denmark, we do not believe that doubts about the EU basis necessarily need to mean that everything is put on hold. Instead, they would have liked to have seen that they had let the projects continue and granted permits for feasibility studies for the many projects that were ready in the starting box. In the meantime, the government was able to clarify outstanding legal and political issues without costing the pace of the green transition, says the organization.
- This is another example of an extreme zig-zag course in the climate and energy field. It does not lack climate ambitions, but with the revenue ceiling, reform of the electricity market and now the scrapping of the Open Door scheme, you are creating unease about green investments and weakening trust in Denmark among developers and investors. Denmark and the climate need the cheap, green electricity that would come from the open door projects. We simply have to find a solution to this now and get the EU challenge resolved as soon as possible, says Kristian Jensen.
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