Denmark hits pause button on wind farms

Source: By Wall Street Journal • Posted: Wednesday, June 22, 2016

The Danish Parliament is considering delaying the construction of new wind farms as it prepares to end an electricity tax for renewable energy.

The Wall Street Journal‘s editorial board called it a sign that “economic and political reality is catching up with Europe’s green ambitions.”

The European Commission ruled that Denmark’s green levy on electricity bills violated E.U. rules in 2014. The levy contributes to energy bills that are the highest in Europe. Parliament is considering ending the levy altogether rather than fixing it.

The Wall Street Journal wrote that Copenhagen now faces a “struggle” to raise enough revenue to replace the green tax and continue to pay subsidies for renewable energy like wind.

Copenhagen still plans to add offshore wind capacity but is mulling delaying the construction of some coastal wind farms, which could save more than $1 billion over 12 years.

“The episode demonstrates that there are limits to even the European willingness to sacrifice prosperity for carbon virtue,” The Wall Street Journal wrote Wall Street Journal, June 16). — CVK