Government Support in Denmark

The Danish wind industry has achieved international success without relying heavily on direct state support. However, the ongoing discussion and implementation of "Den grønne investeringsordning", which offers temporary state support to the green industry, mark a shift in strategy. This adjustment is likely driven by increased competitive pressures from other countries actively utilizing state support as a tool to advance their respective green sectors.

Facing competition from nations, which favour locally produced technology and provide substantial state support, Denmark responds by opening avenues for state backing. This is deemed necessary to maintain the competitiveness of Danish businesses. Without sufficient government support, there is a risk of investments and jobs in green energy bypassing the country. The state support facilitated provides a necessary boost to the green industry, creating favourable conditions for companies looking to establish new production facilities or expand existing ones. This initiative aims to strengthen investment conditions in Denmark and uphold a sustainable green sector.

Administered by the Danish Export and Investment Fund (EIFO), the government support offers direct grants or favourable loans and guarantees to businesses in wind turbines, Power-to-X technologies, and related component manufacturing. The scheme is temporary, with financial limits, and the decision on additional state support in 2025 is yet to be determined.

Denmark's Offset Strategy and the Impact on Research and Development 

Denmark's consistent practice of offsetting EU contributions against its domestic Research and Development (R&D) budget has been a subject of ongoing discussion within the R&D industry. Presently, the Danish government has no intentions to cease this offset mechanism. The process involves subtracting funds from the national R&D budget for every euro received from EU research programs. This approach has sparked concerns about Denmark's global competitiveness, as the successful acquisition of EU grants translates into reduced funding for national research initiatives.

Critics contend that Denmark's offset strategy establishes a counterintuitive incentive structure, wherein success in obtaining EU grants leads to diminished funding for domestic research. The ongoing debate underscores the imperative for a nuanced understanding of the dynamics between EU funding, national research budgets, and the necessity to foster, rather than hinder, success in international research collaborations. The resolution of this issue is positioned to mold Denmark's future engagement with EU research programs and its dedication to cultivating a robust research ecosystem.

In acknowledging European fund allocations and Denmark's offsetting practices, the Danish Alliance For Renewables recognizes the inherently political nature of this matter, beyond direct control. Nonetheless, our alliance expresses a keen interest in collaboratively influencing this issue alongside the broader R&D community.