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On 10 October 2025, the Danish Government and several other political parties agreed on a set of initiatives to boost local support for onshore renewable energy. The initiatives include doubling the tax-free neighbour compensation, speeding up the processing of appeals, and expanding the sale option scheme by raising the threshold from 200 to 275 meters for large projects. Industry groups warn developers face higher costs.
The Danish Government and several other political parties have agreed on a set of initiatives under the agreement "Aftale om udbygningen af sol og vind på land 2025" to strengthen local support for onshore renewables. The agreementsets out 21 steps aiming to make renewable energy projects easier to locate and faster to approve.
Key elements are doubling of the yearly, tax-free neighbour compensation for solar projects (from 2026), introducing asix-month time limit for appeals related to wind and solar projects (in 2027–2028) as well as for projects concerning CO₂ storage, PtX, geothermal energy, biogas, energy storage, and infrastructure for green electricity and hydrogen (in 2026–2028).The sale option scheme will also be expanded by raising thethreshold from 200 to 275 meters forlarge projects (100 MW or more).In addition, a new initiative for neighbours to buy local green power at a lower price is proposed. The overall goal is to increase onshore solar projects with stronger local support.
Industry groups warn the initiatives could raise costs and slow projects if grid and permitting issues are not fixed at the same time. Adding new developer costs without resolving grid bottlenecks will make more projects unviable, despite positive initiatives like faster appeal handling and optimized environmental assessments processes.
Plesner recommends that developers and investors review project business models and contracts to account for higher neighbour payments and potential property purchase obligations, and to assess how the initiatives may affect project timelines and viability.
Under the political agreement, a total of DKK 444.7 million is allocated towards 2029 to improve the conditions for the expansion of onshore renewable energy.
Read theMinistry of Climate, Energy and Utilities' press release (in Danish)
Plesner is following the implementation of the initiatives closely.
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