The market for offshore wind installation in Denmark is expected to record a CAGR of more than 8% in the forecast period of 2020 - 2025. This, in turn, is expected to have a positive impact on the overall renewable energy market in the country during the forecast period. Factors, such as supportive government policies and efforts to meet power demand using renewable energy sources and to decrease dependency on fossil fuel-based power generation are expected to act as significant contributors to the growth of the market. On the other hand, the absence of any new initiatives and limited land availability for solar and wind farm installations are expected to restrain the growth of the market in the coming years.
- Wind energy has shown robust growth in Demark, reaching more than 6000 MW installed capacity in 2019 and is expected to continue the same trend in the forecast period.
- The Denmark government is aiming to create a fossil-free vehicle environment by 2030 and later complete independence from fossil fuels for energy generation, which makes renewable energy sector as the future of Denmark. Such ambitious goals of the government are expected to create a significant opportunity for the market players in the near future.
- With continuous efforts and ambitious policies of the Danish government, following Renewable Energy outlook 2019, Denmark is expected to witness a considerable growth in the renewable market.
Key Market Trends
Wind Energy to Dominate the Market
- With a capacity of more than 6000 MW (4400 MW onshore and 1700 MW offshore) from Wind Energy by the end of 2019, wind energy holds a significant share in the renewable market of Denmark.
- With the opening of the Horns Rev 3 project with a capacity of 407 MW in August 2019, a surge of 12% in the wind power production is expected in the coming years. The project is expected to supply power to 425,000 homes, increasing the share of wind power further ahead.
- In August 2019, Danish Energy Association unveiled sites of capacity more than 12 GW in the offshore region of Denmark, which lays the future path for the growth of wind energy in Denmark.
- With upcoming projects like Thor in the North Sea and Krieger's Flak with a capacity of 800 MW and 600 MW, respectively, the wind energy share in Denmark is expected to drive at a considerable rate.
Government Initiatives and Policies Driving Renewable Market
- Danish energy policy mandated the complete phase-out of fossil fuels in the energy supply by 2050. In the long term, electricity, heating, industry, and transport energy are to be provided entirely by renewable sources.
- Since 1990, greenhouse emissions have been recorded to be fallen by 29% in 2017. The Danish government is aiming to reduce it further by 46% by 2030 by giving more stress on renewable.
- The government is providing subsidies on renewable on a tender basis. In August 2018, The European Commission (EC) approved three different schemes to subsidize electricity production from wind and solar power in Denmark for the rest of this year and 2019.
- Denmark’s Energy and Climate Outlook 2019 agreement ensured financing of three offshore wind farms, relaxation of electricity taxes, new technology-neutral tenders, removal of the co-generation requirement in small-scale district heating areas, new energy-saving efforts, etc.
- The bold steps and visionary policies of the Denmark government are expected to drive Denmark towards a global leader in renewable.
The Denmark renewable energy market is partially fragmented. Some of the major companies include Vestas Wind Systems A/S, Oersted A/S, Siemens Gamesa Renewable Energy SA, Arcon-Sunmark A/S, Vattenfall A / S, Better Energy A/S, and others
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