Renewable power generation (excluding hydropower) in Denmark is expected to increase from 24.33 Terawatt-hours (TWh) in 2020 to 43.2 TWh by 2030, growing at a compound annual growth rate (CAGR) of 5.9%, according to GlobalData. The leading data and analytics company notes that the share of renewables in the generation mix is already quite high, at 86.4% as of 2020, and it is set to grow to 99.9% in 2030.
According to GlobalData’s report, ‘Denmark Power Market Outlook to 2030, Update 2021 – Market Trends, Regulations, and Competitive Landscape’, the Danish Government continues to play a pivotal role by encouraging renewable energy development. Its objective is to increase the share of green energy in the power mix and gradually increase the share of renewable energy to 100% in both the energy and transport sectors by 2050.
Rohit Ravetkar, Power Analyst at GlobalData, comments: “Denmark is among the global leaders in the adoption of renewable technologies. In 2020, more than 80% of the power generated in the country came from renewable power sources. A significant portion of renewable growth in Denmark is attributed towards wind power.”
The country is a global leader in wind power technology. Large wind turbine manufacturing companies, such as Vestas and Siemens, have bases in Denmark, and the country possesses both onshore and offshore wind farms. As of 2020, onshore wind farms are ahead of offshore wind farms in terms of installed capacity, but the government is focusing on increasing the share of offshore wind capacity. As a result, offshore wind capacity is expected to overtake onshore in 2029.
Ravetkar adds: “The country aims to phase out coal-based and oil-based power plants by 2030. Also, as a party to the Paris Climate Agreement, Denmark has pledged in its Nationally Determined Contribution (NDC) to reduce Greenhouse Gas (GHG) emissions by 50% by 2030 in comparison to 2005 levels. These factors have propelled the growth of the renewable energy sector in the country. Along with wind power, other potential growth areas are solar PV and biomass power generation. Commercial solar PV installations are expected to show strong growth. Denmark’s leading power utility, Orsted AS, is converting its thermal power plants into biopower generation units. Vattenfall, another leading utility in the country, is also selling off its thermal power plants and investing in offshore wind technology.”