The Danish Energy Agency’s decision to suspend ‘open door’ renewable energy projects is a serious setback for the green transition and meeting climate goals in Denmark, Forsikring & Pension (F&P) has warned.

The open door scheme allows energy companies in Denmark to install renewable energy projects through the submission of unsolicited applications.

This scheme has been suspended by the agency due to fears that it potentially conflicts with EU law.

F&P noted that Danish pension companies are deeply involved in the green transition, including offshore wind projects.

Therefore, the decision to put open door projects on hold represents a huge setback for the green transition and investments in green energy, F&P stated.

“It is paradoxical, to say the least, that Denmark's high climate ambitions must run aground on bureaucracy and year-long approval processes,” commented F&P deputy director, Tom Vile Jensen.

“It is a huge setback for the green transition if so many potential Danish offshore wind projects are now put on hold.”

He highlighted that the Danish pensions industry has committed to reaching up to DKK 500bn in green investments by 2030.

“A large part of the pension industry's green investments must, among other things, go for the expansion of offshore wind in Denmark, because our country has completely unique opportunities, and where private companies together with, among others, Danish pension funds have taken on the task and provided the solutions,” Jensen continued.

“With today's decision, it is a question whether the billions will even be invested in Denmark.”

F&P warned that without large amounts of green electricity, Denmark would not be able to produce green fuels and fertiliser, and with other nations reporting positively on investments in PtX technology, there were fears that Danish pension investment money could be invested abroad instead of at home.

“Now the politicians and the authorities must find solutions so that we can move forward with the development of offshore wind in Denmark,” Jensen stated.

“I note that the Minister for Climate Change is looking at the possibility of new concession models. Let's quickly take action and move on.”

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