After a comprehensive ministerial reshuffle on Tuesday, the government has announced an equally comprehensive plan to promote green growth in the Danish economy. And one of the elements in the plan is that the current registration tax exemption of electric vehicles (EVs) will be extended to 2015. The news is widely reported in the Danish media.
Hitherto, a provision in Denmark's energy policy has ensured registration tax exemption for EVs until 2012. That initiative has been an influential factor in attracting EV manufacturers and providers from around the world to pitch in for a slice of the coming market – and when one considers that car registration tax in Denmark is typically 180% of the sales price, it is easy to see why. But with only two years of guaranteed tax exemption remaining for EVs, and the market still in early infancy, an atmosphere of uncertainty was beginning to be felt. That uncertainty has now been dispelled.
Professional journal Ingeniøren (The Engineer) reports that the Danish Electrical Vehicle Alliance has called the government's announcement 'wise'. The alliance has 45 members ranging from energy companies to industrial companies and car manufacturers which see unique opportunities for testing EV technologies in Denmark.
Lærke Flader, who heads the Danish Electrical Vehicle Alliance, told Ingeniøren: "The decision ensures that Denmark can be a leading test country for EVs. We have a special position with our large production of wind power and our high tech know-how. The tax exemption [until 2015] ensures that we get the full benefit of both."
According to Lærke Flader, the EV industry can help create the knowledge intensive jobs that the government sees as a major plank in its green growth strategy. The proliferation of EVs can also benefit Denmark's energy supply network, since EV batteries can act as a means of storing electricity and thereby help smooth out the natural fluctuations in output from wind turbines.