Denmark Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Denmark Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The offshore wind installation market in Denmark is expected to record a CAGR of more than 8% in the forecast period of 2020-2025. The COVID-19 pandemic is expected to impede the growth of the market, as the country is expected to decrease by 4.4% of its gross domestic product (GDP) in 2020. Some estimates of 2021 have shown a positive growth of 5.5% of GDP, which may bring the economic activity back to the pre-covid level. 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 decrease dependency on fossil fuel-based power generation are expected to act as significant contributors to the market's growth. 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 market's growth in the coming years.

Key Highlights

• Wind energy has shown robust growth in Demark, reaching more than 6000 MW installed capacity in 2019, and it is expected to continue the same trend in the forecast period.
• The Danish government is aiming to create a fossil-free vehicle environment by 2030 and later complete independence from fossil fuels for energy generation, which makes the renewable energy sector 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 the Danish government's continuous efforts and ambitious policies, following Renewable Energy outlook 2019, Denmark is expected to witness considerable growth in the renewable market.

Key Market TrendsWind 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 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, the Danish Energy Association unveiled more than 12 GW sites 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, 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.
• 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 Danish government's bold steps and visionary policies are expected to drive Denmark towards a global leader in renewable.

Competitive Landscape

The Danish renewable energy market is partially fragmented. Some of the major companies include Vestas Wind Systems AS, Oersted AS, Siemens Gamesa Renewable Energy SA, Arcon-Sunmark AS, Vattenfall AS, and Better Energy A/S.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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