Denmark’s Latest EV Shift: How Tax Incentives and Infrastructure Are Powering Electric Buses

EV Regulations and Support Policies in Denmark

Denmark’s green transition began in the 1970s, triggered by the oil crisis. At that time, the country decided to reduce its dependence on imported fossil fuels and shift toward wind energy and improved energy efficiency. Since then, a wide range of environmental policies has been introduced to support the transition.

■ Regulations

1990: Energi 2000

• A national action plan for Denmark’s energy sector aimed at ensuring environmentally sustainable development.

• Targeted a 20% reduction in CO2 emissions from the energy sector by 2005 compared to 1988 levels. At the same time, emissions of nitrogen and sulfur were also to be reduced.

2011: Energy Strategy 2050

• A long-term strategy to make Denmark fully independent of coal, oil, and gas by 2050. It outlines a gradual transition of the entire national energy system toward renewable energy, alongside expanded electrification.

• Within this framework, the transport sector was required to contribute to emission reductions, with increased use of green electricity.

• This long-term strategy established the regulatory and infrastructure foundations necessary to support the large-scale adoption of EVs.

2020: Klimaloven (Climate Act)

• Introduced a legally binding climate target to reduce emissions by 70% by 2030.

• Obligates the government to implement decarbonization measures in the transport sector as part of the broader national climate strategy.

■ Support Measures

2021: Infrastrukturplan 2035

• A large-scale infrastructure investment plan extending to 2035, allocating a total of DKK 105.8 billion (approx. JPY 2.22 trillion) to new infrastructure projects.

• Of this amount, DKK 39.5 billion (approx. JPY 829.5 billion) is dedicated to public transport, including rail and BRT systems.

• In addition, DKK 1.9 billion (approx. JPY 39.9 billion) is allocated to green initiatives as part of the transition toward sustainable mobility.

2025: Finansloven 2026 (Finance Act 2026)

• Postpones the planned increase in registration tax for EVs by one year, maintaining the same tax conditions in 2026 as in 2025.

• Furthermore, for the 2026–2027 period, the electricity tax will be reduced to the minimum level permitted by the EU, lowering EV charging costs.

The State of EV Buses in Denmark

EV buses are now widely deployed across Denmark. In 2025, the total number reached 2,116 units, representing 20.45% of the overall bus fleet. In terms of new registrations, more than 7 out of 10 new buses registered in 2025 are EV buses.

The growth has been rapid. In 2020, Denmark had just 118 EV buses in operation. Within five years, this figure increased nearly twentyfold, reaching 2,116 units by 2025.

Source: Created by Aakel Inc. based on data from EU Database

EV Buses in Denmark: Movia

In 2025, Movia reached 565 EV buses out of a total fleet of 1,126 vehicles. This milestone was achieved six years ahead of its original target.

Movia, founded in 2007, is the public transport authority for Denmark’s Capital Region (Hovedstaden) and Region Zealand (Sjælland). On behalf of 45 municipalities and two regions, it is responsible for planning, tendering, and coordinating bus and local transport services.

Movia does not directly own the buses. Instead, it manages service contracts with private operators, which select the EV bus models introduced into operation.

Examples of EV bus models in service include:

• BYD: K9 (China)

• Dimensions: 12,000 mm × 2,550 mm × 3,360 mm

• Driving range: 250 km

• Battery capacity: 324 kWh

• Yutong: E12 (China)

• Dimensions: 12,170 mm × 2,550 mm × 3,300 mm

• Driving range: 220 km

• Battery capacity: 422 kWh

• MAN: Lion’s City 12 E (Germany)

• Dimensions: 12,200 mm × 2,550 mm × 3,320 mm

• Driving range: 350 km

• Battery capacity: 480 kWh

Over the past five years, Movia has accelerated its transition to EV buses. The number increased from 77 vehicles (6.5%) in 2020 to 597 vehicles (53.64%) in 2025.

Source: Created by Aakel Inc. based on publicly available information from Movia

Challenges and Measures in Movia’s EV Bus Deployment

Driving Range

• Challenge: Route 600S (Ishøj–Hillerød) stretches 74.5 km, making it difficult to operate entirely with EV buses. Electricity consumption increases due to traffic conditions and winter heating, creating the risk of running out of power before completing daily operations.

• Measure: Fast-charging infrastructure has been installed at terminal stations and turnaround points. By charging during scheduled layovers between trips, buses no longer need to stop mid-route or return to the depot for additional charging.

EV Bus Vehicle Costs

• Challenge: EV buses have higher upfront vehicle costs compared to diesel buses.

• Measures:

• Movia adopts service contracts of up to 14 years, enabling private operators to recover their investments over the long term.

• Tender requirements mandate the introduction of zero-emission vehicles.

As a result of these initiatives, more than 51 million kilometers are operated annually with zero CO2 emissions. Movia aims to reach 94% electrification of its bus fleet by 2030. In addition, national policies, including infrastructure investments and reductions in electricity taxes, further mitigate the financial risks associated with the transition to EV buses.

Our Case Study: Supporting EV Bus Adoption by Bus Operators in Japan

At Aakel Inc., we provide end-to-end support for the transition to EV buses, covering transition simulations, EV vehicle and charger deployment, electrical construction, subsidy support, and charging optimization: all delivered as a single, integrated service.

In particular, through OPCAT, which we provide as a white-label solution for Chubu Electric Power, we have delivered smart EV bus charging services to multiple bus operators, with over three years of operational experience.

Press Release Reference: Chubu Electric Power × Aakel Technologies Start of OPCAT Management System services for commercial EVs

Challenge: Managing Electricity Costs When Introducing EV Buses

For bus operators, the installation of fast chargers often raises concerns about increased contracted power (kW), leading to higher electricity costs.

Solution: EV Bus Smart Charging Through Peak Shifting

To address this issue, Aakel provides the EV bus smart charging solution AAKEL eFleet, which dynamically adjusts the charging output (kW) of fast chargers every 30 minutes. This approach suppresses increases in contracted power while maintaining stable and reliable EV bus operations.

AAKEL eFleet also enables centralized management of EV buses from different manufacturers by generating state-of-charge (SoC) prediction models, even for vehicles that cannot support onboard devices or API integration. This allows customers to select EV buses freely without being tied to a specific manufacturer.

AAKEL eFleet supports a wide range of operational needs related to base charging for corporate fleets, including buses, taxis, trucks, company cars, and sales vehicles, as well as various challenges associated with EV deployment and operation.

[AAKEL eFleet]

In addition, Aakel Inc. has supported energy companies, automotive-related firms, public transport operators, and other organizations in developing new EV-related business initiatives.

Through this comprehensive solution and consulting approach, we address a wide range of corporate needs related to EVs, from commercial vehicles such as buses, taxis, and trucks to company-owned fleets.

Leveraging our extensive expertise in the power and energy domain, along with our global network, we also provide research and consulting services in the mobility sector.

• Understanding business opportunities for your products and technologies in overseas EV markets

• Creating concise and easy-to-understand EV research reports for internal use

• Exploring new EV-related business development opportunities in Japan