Denmark introduces Local Collective Tariff for energy communities

From 2026, it became possible in Denmark for citizens, businesses and local actors to share power locally according to a new tariff model. This corresponds to what we in Norway have often referred to as coordinated connection.

Industrial areas and other geographically local areas can join forces to utilize the power grid in a smarter way by coordinating the use of the grid.

In July 2025, the Danish Electricity Supply Authority (corresponding to the Norwegian RME) approved a method for so-called Local Collective Tariffing, developed by the Danish DSOs Cerius A/S and Radius Elnet A/S. Green Power Denmark has prepared a guide for Collective Tariffing, which describes the details and how it will be implemented during the trial period that will last until 2027.

With the implementation in the grid companies' systems during 2025, the scheme could come into force in January 2026. This means that local energy communities have for the first time received a regulatory and tariff framework that concretely supports the joint use of the power grid.

At Energifællesskaber Danmark, the approval is seen as a significant step forward for citizen-driven/business-driven energy solutions.

Director Morten Mejsen Westergaard at Energifællesskaber says:

“This is a breakthrough for energy communities in Denmark. For the first time, we are getting a tariff model that recognizes collective behavior and provides a concrete economic incentive to use the grid intelligently and locally. This strengthens both the green transition and local engagement. At the same time, it is crucial that we now gain practical experience so that the model can be further developed and, in the long term, include larger and more complex energy communities.” (translated)

The pages of Energifællesskaber provide a good description of Local Collective Tariffing

Read more on the websites of DSO Cerius about how customers can apply for Local Collective Tariffing.

See also what Green Power Denmark writes about Collective Tariff.