Taxes and subsidies on Energy in Denmark

Taxes on energy serves to purposes. Besides raising government revenue, taxes promotes climate and energy policy objectives. Consumption of electricity and fossil fuels used for heating purposes are subject to substantial taxes, while renewable energy is exempt of taxes. It provides a significant incentive to replace coal and natural gas with biomass and solar. In the transport sector, is biofuel generally imposed the same tax structure.


Ea Energy Analyses has carried out an overview of the Danish system for taxes on behalf of the municipality of Fåborg-Midtfyn in relation to Energiplan Fyn. Furthermore, the analysis included recommendations of changes in the tax system to support the green transition of the Danish energy system.


The analysis consists of the following subjects: Fuels, emissions, tariffs, heat- and chp plants, renewable electricity production, energy saving obligations, heat pumps, electric heaters, surplus heat and transport.


The project was carried out from April to June 2015

Last update 07-Aug-2018

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Contact: Hans Henrik Lindboe



Helge Ørsted Pedersen



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