'Simply not right' | Anger as Denmark halts 'open door' scheme risking 15GW of renewables projects
Danish Energy Agency pauses programme that would have allowed large offshore wind projects to be built without a tender over fears over EU rules breach
The Danish Energy Agency has halted the country’s so-called ‘open door’ scheme that allowed large and mostly offshore wind projects to be built without a tender and subsidies, potentially putting at risk over 15GW of green electricity ready to be installed.
The government in Copenhagen said the agency had to suspend the processing of all pending offshore wind and other projects with renewable energy under the scheme after the Danish climate and energy ministry in a dialogue with the European Commission aid secretariat decided that it may be in breach of EU law.
"It is a serious situation for the green transition and especially for the market players who are ready to invest in this form of offshore wind,” climate and energy minister Lars Aagaard said.
“There should be no doubt that I am deeply frustrated that, at a time when we need more green energy so much, we are now in this situation. But rules must be observed, and I respect that the Danish Energy Agency must act at the risk of conflict with EU law.
"The specific situation raises a lot of questions about the consequences for the individual applications and the scheme, which must be clarified.”
Renewables federation Green Power Denmark said the “completely unheard of” eleventh-hour closure of the open door scheme affects more than 15GW of green electricity ‘ready to be installed’.
“The government suddenly slams the door to the green transition with a bang that sends shock waves through the entire green energy industry,” Green Power Denmark’s chief executive Kristian Jensen said.
“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 with the way we have historically conducted energy policy in Denmark and creates enormous uncertainty about green investments.”
The decision is a huge blow to the Nordic country’s climate ambitions, he said, adding that the sector is now only left with the country’s target to reach 9GW of new offshore wind by 2030, but without tenders scheduled for that.
The energy minister said he is already in personal contact with European competition commissioner Margrethe Vestager for a dialogue on the framework for the renewable expansion in the EU.
He added the Danish government is looking at what else it could do to speed up the development of wind at sea, including through more flexible models for development – possibly in the form of an updated concession model.
"I am already in personal contact with Margrethe Vestager by virtue of her role as Vice-President of the European Commission for a dialogue on the assessment and framework for renewable energy expansion in the EU, and I will continue that dialogue."
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