VIDEO: Accelerate the energy transition

Taxation of electricity produced by offshore wind and other renewables, as well as taxing these technologies, is something the industry needs to stand up against if it wants to see even lower costs and accelerate the energy transition, according to Ditlev Engel, CEO at DNV GL Energy.

In most countries, the industry is talking about cost of energy and lowering cost of energy, but the real matter should be taxation of electricity, according to Engel.

“Taxation is what most people are paying for the most, it is not the cost of generation. Therefore, the real question here is not about the technology, but about how most regulators and politicians have decided to tax it and, if we are trying to meet the goals from the Paris Agreement, will they tax the electricity and why would they do that,” Engel comments.

Engel: “The reason we taxed it in the old days is because we wanted to lower CO₂ emissions, so why would you now tax something you want more of?!”

He also says that the energy transition can only happen with public support and with people understanding why this is being done. It is the industry’s obligation to make sure people understand the challenges and what needs to be achieved.