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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure DK-2020-26/3923 – measures in Denmark

Energy Island Bornholm - a part of the Climate Agreement from 2020

Energi ø Bornholm - en del af klimaaftalen fra 2020

Country Denmark , applies regionally

    • – DK0 DANMARK
Time period Open ended, started on 22 June 2020
Context Green Transition
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery into a green future
– Financing the green transition
Author Carsten Jørgensen (FAOS, University of Copenhagen), Louise Fabricius (Oxford Research) and Eurofound
Measure added 27 August 2025 (updated 02 October 2025)

Background information

The decision to establish an ocean Windmill park outside of the coast of Danish Island Bornolm, and thereby establishing what is now known as 'Energy Island Bornholm', comes from the climate agreement of June 22, 2020, entered into by the Government along with Venstre, the Danish People’s Party, the Social Liberal Party, the Socialist People’s Party, the Red-Green Alliance, the Conservative People’s Party, Liberal Alliance, and The Alternative.

At the summit, Denmark and Germany also signed a political agreement to establish a cable connection from the energy island to Germany, allowing electricity to flow directly into the German grid and onward to the rest of Europe. The intergovernmental agreement was formally signed by the Danish and German ministers on June 1, 2023.

It is the Danish Energy Agency and Energinet that are responsible for the actual construction, while the Bornholm Regional Municipality works closely with local and national stakeholders to create the best possible conditions for green innovation and job creation on Bornholm – now and in the future. In this way this measure to some extent relates to a just transition.

As of August 2025, neither the windmill park or the cable, connection Denmark and Germany has been build. This is due to missing financing means and investment and economic negotiations with Germany, which have resulted in major delays on the entire project and measure.

However, as of august 2025, a green light has been given from the Danish Government to the state company Energinet to start looking into buying materials for the project, and the German and Danish government has agreed to go into negotiations regarding the financial future of the project.

Content of measure

'Energy Island Bornholm', comes from the climate agreement of June 22, 2020, entered into by the Government along with Venstre, the Danish People’s Party, the Social Liberal Party, the Socialist People’s Party, the Red-Green Alliance, the Conservative People’s Party, Liberal Alliance, and The Alternative.

Denmark and Germany also signed a political agreement to establish a cable connection from the energy island to Germany. The intergovernmental agreement was formally signed by the Danish and German ministers on June 1, 2023. The project is expected to provide 3,3 million Danish households yearly electricity consumption.

It is the Danish Energy Agency and Energinet that are responsible for the actual construction, while the Bornholm Regional Municipality works closely with local and national stakeholders to create the best possible conditions for green innovation and job creation on Bornholm – now and in the future.

The project is and will be funded by EU, the Danish state, private investors and the German state.

Use of measure

Leading Danish economists, often referred to as the "wise men" (Vismændene), have issued a warning about the government's ambitious project. They caution that the artificial energy island, planned to play a central role in Denmark’s green transition, may end up being far more expensive than initially anticipated — and potentially not worth the investment.

In a newly published government report, the economists argue that the project risks becoming a costly method of reducing greenhouse gas emissions. If it cannot be demonstrated that the project provides clear socioeconomic benefits, they recommend that it be scrapped altogether.

However, the economists stress that large-scale projects like this must not only be green — they must also make sense economically. According to their analysis, there is a significant risk that Energiø Bornholm could prove to be a poor use of public funds unless better financial justification is presented.

Target groups

Workers Businesses Citizens
Particular professions
Companies providing essential services
Contractors of a company
Importing/Exporting companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
Local / regional government
EU level social partners
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

Unknown at this point

Views and reactions

Unknown at this point

Sources

Citation

Eurofound (2025), Energy Island Bornholm - a part of the Climate Agreement from 2020, measure DK-2020-26/3923 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2020-26_3923.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.