A bombshell hit Danish plans for offshore wind farms with a total output 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 Utilities assesses that offshore wind turbine projects and other renewable energy projects under the scheme may be in breach of EU law.
News brings a big surprise to 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 amount of 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 is simply not right. It is a break with 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, where the tenders have not even started. At the same time, we see that the expansion of wind turbines and solar cells on land is creeping along. We find ourselves in a situation where we urgently need green electricity for our 2030 climate goals, Power-to-X ambitions and goal of becoming a net exporter of green electricity.
The industry organization Brintbranchen is also concerned about the sudden stop.
- It is enormously problematic that the processing of the open-door scheme is now being put on hold. Rules, including state aid rules, must of course be observed, but ultimately this is yet another man-made obstacle to our being able to establish the renewable energy we urgently need, says Tejs Laustsen Jensen, director of the Hydrogen Industry, who also calls for the Danish government and the EU Commission to find a solution very quickly.
The Confederation of Danish Industries (DI) is more blunt in its rhetoric.
- This is a definite disaster and potentially the biggest obstacle to the realization of the green transition in Denmark, says Lars Sandahl Sørensen, 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 rejected, he says.
The process should be able to continue
Green Power Denmark does not believe that doubts about the EU basis necessarily had to mean that everything is put on hold. Instead, they would have liked to have 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 could have clarified outstanding legal and political questions without it costing the pace of the green transition, the organization says.
- This is yet another example of an extreme zig-zag course in the climate and energy area. There is no shortage of climate ambitions, but with the revenue cap, reform of the electricity market and now scrapping the Open Door scheme, they are creating unrest about green investments and weakening confidence 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 need to find a solution now and resolve the EU challenge as quickly as possible, says Kristian Jensen.
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