In an attempt to reduce the total PSO tax, which goes to supporting sustainable energy, the government wants to scupper plans to establish wind turbines along the Danish coastline.
The government is aiming to cut the PSO tax by 8 billion kroner by axing the coastal wind turbines, which were agreed to during an energy agreement in 2012.
“Denmark’s economy is in a rut,” said Troels Lund Poulsen, the business and growth minister. “Cutting the PSO tax will be a significant help to Danish companies, which often compete with foreign companies that enjoy far lower taxes and fees.”
“As of now, the PSO tax limits Denmark’s ability to compete, and the cut will benefit all companies and will support continued production in Denmark.”
In total, the PSO tax is expected to cost companies and private energy consumers in Denmark some 70 billion kroner over the next decade.
But with the wind turbine plan now blowing in the wind, the government expects the lofty energy bill of the average Dane will decrease. It will also satisfy the EU, which contends that the PSO tax goes against EU legislation and must be changed by the end of 2016.
The coastal wind turbines were supposed to be ready by 2020 and were expected to produce 350 MW of sustainable energy.