The European Commission has agreed to the changes made by Denmark to its scheme of support for renewable energies.
The Commission reiterates that the member states are free to decide how to finance schemes of this kind, through the State budget or via a specific tax.
Between 2014 and 2016, the Commission approved several Danish support measures to promote the development of renewable energy through the 'PSO' tax levied on energy consumers. This tax was levied on electricity produced in Denmark, but also on imported electricity.
Denmark undertook partially to open up its support to renewable energy produced by foreign businesses, by allowing them to participate in pilot calls for tender for 2015 and 2016. The Commission takes the view that this remedies the risks of discrimination against foreign producers, which is prohibited under EU rules.
This month, Denmark informed the Commission of its plan to finance renewable support directly from the State budget with effect from 2017, rather than through the PSO tax. For existing support, the tax will be phased out over a period of five years during which time the State budget's financing share will increase gradually each year. In order to avoid the risk that the measure will discriminate against imported electricity during this period, Denmark has undertaken to invest €114 million in infrastructure to support cross-border energy flows. (Original version in French by Élodie Lamer)