New green alliance: Municipalities to be rewarded for paving the way for renewable energy

17. March 2025
Business Region MidtVest and the Green Transition Denmark have entered into an alliance to ensure local support for the green transition and accelerate the expansion of renewable energy on land.

To achieve Denmark's climate goals and realize the potential for renewable energy, Business Region MidtVest and the Green Transition Denmark are now entering into a close collaboration. The alliance will strengthen the green transition with broad local support and ensure that municipalities not only bear the burden, but also experience the economic and societal benefits.

Specifically, the Green Transition Denmark is now sending its support to the more than 20 municipalities that have proposed a municipal development contribution that will ensure that the municipalities receive a fair share of the benefits of setting up renewable energy plants.

"We urgently need the lack of momentum to be replaced by political courage and action. The task now is to gather all forces to free ourselves from fossil fuels and build a clean and sustainable energy system. This also requires strong local support and financial incentives, and the proposal for a Municipal Development Contribution can help ensure this," says Bjarke Møller, director of the Green Transition Denmark.

Denmark faces a crucial task
The government has set a goal to quadruple onshore renewable energy production by 2030 and become independent of fossil fuels by 2050. But if we are to succeed, it is crucial that citizens and local communities experience concrete benefits from turning land into energy production. That is why the alliance is presenting a proposal for a Municipal Development Grant to ensure financial support for municipalities that are at the forefront of the green transition.

Green transition requires local support. Today, many municipalities experience that local citizens see energy projects as a burden rather than a benefit. This must change. By introducing a development contribution of 4 øre per kWh of green electricity, we can secure annual funds for municipalities that prioritize the expansion of renewable energy. By 2023, this would have generated around 500 million kroner for local initiatives such as climate adaptation, biodiversity projects and welfare.

"We cannot ignore the frustration that arises when local people experience that their area pays the price, while the benefits are distributed nationally. With a development contribution, we create a fairer green transition, where municipalities share in the economic value of their contribution to energy production," says Dorte West, chairman of Business Region MidtVest and mayor of Herning Municipality, and continues:

“We welcome the support from the Green Transition Denmark, which is an important ally in ensuring that municipalities that take responsibility in the green transition are also rewarded.”

Facts about the proposal:
The proposal involves reserving a portion of the electricity tax for municipalities. A development contribution of 4 øre per KWh of green electricity will provide annual funds that reward both existing and future renewable energy projects. For Danish municipalities that have embraced the expansion of renewable energy, this will correspond to annual revenues of around 2024 million kroner in 550. This will create a direct incentive to accelerate the expansion of renewable energy on land, while creating balance and development throughout the country.

In addition to the Green Transition Denmark, these 20 mayors and regional council chairmen support:

Dorte West, Herning Municipality, Marianne Bredal, Struer Municipality, Peder Christian Kirkegaard, Skive Municipality, Ib Lauritsen, Ikast-Brande Municipality, Erik Flyvholm, Lemvig Municipality, HC Østerby, Holstebro Municipality, Hans Østergaard, Ringkøbing-Skjern Municipality, Per Bach Laursen, Vesthimmerland Municipality, Karsten Thomsen, Frederikshavn Municipality, Lasse Frimand Jensen, Aalborg Municipality, Mikael Klitgaard, Brønderslev Municipality, Søren Smalbro, Hjørring Municipality, Mogens C. Gade, Jammerbugt Municipality, Tobias Birch Johansen, Læsø Municipality, Mogens Jespersen, Mariagerfjord Municipality, Hans Ejner Bertelsen, Morsø Municipality, Jesper Greth, Rebild Municipality, Niels Jørgen Pedersen Thisted Municipality, Holger Schou Rasmussen, Lolland Municipality, Ole Vive, Faxe Municipality and Regional Council Chairman Mads Duedahl from the North Jutland Region.

For further information contact:
Bjarke Møller, Director of the Green Transition Denmark
Email: bjarke@rgo.dk Tel. 51561915
Dorte West, mayor of Herning Municipality, chairman of Business Region MidtVest
Email: bordw@herning.dk Tel. 96282322
Nicolai Houmark Lauridsen, Head of Secretariat at Business Region MidtVest
Email: nicolai.lauridsen@br-mv.dk Tel. 29 31 26 67

Contact

Bjarke Møller