The Danish government plans to allocate one billion Danish kroner for state aid to the green industry in 2024, with the potential for more funds in 2025, according to an interview with Minister of Economic Affairs Stephanie Lose and Minister of Business Morten Bødskov. The ministers emphasize the importance of defending and strengthening Denmark’s competitive position in the green industry, which currently employs thousands of workers. Stephanie Lose underscores that the idea of state aid is not a traditional Danish stance, and she emphasizes the need for temporary and targeted support.
The state aid will be for companies involved in wind turbines, wind turbine components, hydrogen technology, and the power-to-x industry. Eligible companies can apply to have up to 15% of their costs covered through grants or up to 20% through loans and guarantees.
Meanwhile, the Danish Government recently allocated approximately DKK 4.2M (£500k) in grant funding to support nine local energy communities and climate transition projects focused on renewable energy. The funds, provided by the Danish Energy Agency, aim to back large-scale initiatives promoting local energy communities and enhancing knowledge about them. Notable projects include an energy community guide by Denmark’s oldest environmental organization, NOAH, and startup funds for the garden association Havebyen Mozart. In 2022, 11 projects received DKK 4M in funding grants. The Danish Energy Agency plans to reopen the next funding round in the second half of 2024. Denmark has shown significant growth in solar capacity, reaching 3.2 GW in May 2023, with expectations to lead solar development in Scandinavia and reach 9 GW of photovoltaic capacity by 2030, as reported by Rystad Energy. Additionally, Denmark is anticipated to be a leader in green hydrogen, accounting for 12% of the European market.
Sources
Regeringen vil afsætte en milliard til grøn statsstøtte [The government will allocate 1Bn DKK for green state aid], Politiken, 2023-12-20
Denmark Supports First Energy Communities, PV-Magazine, 2023-12-20
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