New Danish Agreement on Future Energy Subsidies  


The Danish Government has entered into a broad political agreement concerning gradual abolition of the PSO tax from 2017 to 2022.

The agreement ensures the financing of Denmark’s green transition, initiates investments in near shore wind turbines and the offshore wind farm Kriegers Flak, strengthens the competitiveness of Danish industry and commerce, provides lower electricity bills for Danes and clears the way for increased usage of green electricity in the Danish society.

As a result of the agreement, Danish homes will see their electricity bill reduced by about 10 percent on average, while the business sector will see an estimated 25 percent reduction on average. Furthermore, Denmark will have the lowest electricity prices in the EU together with our Nordic neighbours Sweden, Norway and Finland.

The key elements in the PSO tax change are:

  • The gradual abolishment of the PSO tax changes from 2017-2022. In the future, support to renewable energy is financed by the National Budget.
  • The offshore wind turbine park Krigers Flak, and two near-shore wind farm on the west cost of Denmark will be completed.
  • Energy companies saving obligations are reduced from 12.2 petajoules (PJ) annually to about 10.1 PJ annually in the period 2017-2021.
  • A new green climate fund will receive 375 million DKK (50 million DKK in 2017, 50 million DKK in 2018, 100 million DKK in 2019 and 175 million DKK in 2020) to support Denmark’s green transition towards its 2030 goals.
  • The financing of the ForskEL programme, which supports research, development and demonstration projects that contribute to the utilisation of environmentally friendly electricity, will be transferred to the National Budget.

Cleantech Team Leader, Peter Johan Plesner, welcomes the abolishment of the PSO tax as it will make Denmark more attractive to foreign investors looking to invest while benefiting from affordable green electricity.

How can we help you?

Invest in Denmark is ready to assist with clarification of the opportunities this agreement creates for you as a foreign company or investor. If you want to know more, please contact Director, Steen Hommel, via e-mail or phone +45 3392 0271.

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Steen Hommel

Steen Hommel

+45 3392 0271

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