Denmark Renewable Energy Market | Size, Share, Trends and Forecast to 2028

Denmark Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable-based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewable deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of establishments primarily operating renewable electric power generation facilities. Power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electrical energy generated in these establishments is provided to electric power transmission systems or to electric power distribution systems.

Denmark Renewable Energy Market Scenario

As of the end of 2021, the installed renewable energy capacity in Denmark was 10,340 MW. Among the renewable sources, solar accounted for 5.18%, and wind accounted for 71.69%. Renewables accounted for 63.9% of the generated electricity.

The Danish government intends to increase energy generation from onshore wind and photovoltaics ahead of 2030 in order to hasten Denmark's green transition and rid the country of Russian fossil fuels as soon as possible.

Denmark Solar Energy

By the end of 2021, the installed capacity of Solar Photovoltaic in Denmark was 1540 MW. Solar plays a key role in achieving the goal of using 100% renewable energy by 2050. The target of 200 MW of photovoltaics by 2020 was met eight years early, in 2012, with 36 MW installed each month. In late 2015, Denmark had 790 MW. By 2030, a total of 3,400 MW of solar capacity is expected to be installed. In Denmark, there are and will be many solar-thermal district heating plants.

Denmark Wind Energy

Wind energy is one of the most widely used renewable energy sources in Denmark. Wind turbines now account for more than 40% of total Danish electricity production, and installing new wind turbines on land is one of the cheapest ways to increase electricity production.

As a result, wind energy plays an important role in the energy system transformation that must ensure Denmark's independence from fossil fuels by 2050.

Municipalities are in charge of planning the installation of new onshore wind turbines. Furthermore, private individuals may be eligible for subsidies to install wind turbines on their own property.

Bioenergy in Denmark

Bioenergy is critical, accounting for three-quarters of the renewable energy supply. Bioenergy's primary application is in renewable heat, both direct and district heating (which is highly developed in Denmark).

In district heating plants, there is a clear and consistent trend toward replacing fossil fuels with biomass; more than 60% of district heating is now produced from biomass in Denmark.

Several large-scale power plants are currently converting from fossil fuels to solid biomass, while biogas production is rapidly increasing. Bioenergy is an important component of the green transition. According to IRENA, Denmark has a production capacity of 1,778 MW of bioenergy.

In the last decade (2010-2020), globally, the electricity generation from all sources has increased by 2.2% from 21,570 terawatt hours to 26,823 terawatt hours. During the same period, the power generation from renewables increased by 15.25%. Regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy tax credits and subsidies, competitive auctions, and feed-in-tariffs helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic electricity has fallen by 85%, and the costs of both onshore and offshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, Renewables were the only energy source for which demand increased in 2020 despite the pandemic, while consumption of all other fuels declined. The share of renewables in the total energy mix grew from 3.53% in 2010 to 11.73% in 2020 and is expected to grow to about 30% by 2030.

Denmark Renewable Energy Policy

Denmark is a leader in the energy transition due to its net-zero commitments and advances in renewables. By 2030, the country intends to reduce GHG emissions by 70% from 1990 levels, and renewables will account for at least half of total energy consumption.

In accordance with the Paris Agreement, Denmark has committed to achieving net-zero emissions by 2050. Furthermore, the government has agreed to phase out all coal-fired power generation by 2030.

In addition, the country has a political agreement in place that calls for renewable energy to account for 100% of electricity and 55% of total consumption by 2030. Furthermore, by 2030, non-fossil fuels will account for 90% of district heating. The government also intends to phase out the sale of gasoline and diesel vehicles by 2030.

The Electricity Supply Act, National Renewable Energy Action Plan, Draft-National Energy and Climate Plan, Energy Strategy 2050, National Recovery and Resilience Plan - Green Transition, and Renewable Energy Act are some of the major policies in Denmark which promote renewable energy capacity additions.

Recent Developments

Orsted and Copenhagen Infrastructure Partners have formed a collaboration to build 5200MW of offshore wind farms in Denmark over four projects.

Denmark and Vietnam sign MoU on offshore wind energy cooperation. The Danish side will share policymaking experience for offshore wind energy, provide know-how on the efficiency of operation and maintenance of offshore wind farms, and increase cooperation in the field between its institutions and Hai Phong (a port city in Vietnam) under the terms of the MoU.

Denmark inaugurated Scandinavia's largest wind farm in 2021. "Kriegers Flak" has a total capacity of 600,000 Danish households' electricity consumption. The wind farm is located 15 to 40 kilometers off the Danish coast in a 132-square-kilometer area of the Baltic Sea and is expected to increase Denmark's annual electricity production from wind turbines by about 16%.

What Do We Cover in the Report?

Blackridge Research's Denmark Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Denmark.

Furthermore, the report will contain the drivers and restraints within Denmark Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards) as well as country-specific regulations.

Finally, the presentation would enable identifying market opportunities and planning for long-term growth. The impact of the COVID-19 pandemic is an integral part of the report.

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