Denmark Power Market - Growth, Trends, and Forecasts (2020-2025)
The market is segmented by Generation (Wind, Solar, Coal and others) and Transmission and Distribution
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The Denmark power market is expected to grow at a CAGR of less than 1 % in the forecast period of 2020-2025. With a growing population, the demand for power is increasing tremendously. Adding to this, factors such as rapid urbanization, technical advancement, and industrialization is increasing the demand for electricity. With the acceptance of renewable energy sources, a robust grid development is required, which is expanding the distribution and transmission sector of the power market. On the other hand, considerable high investments required in upgrading and developing new generation transmission or distribution networks are hindering the growth of the power market in Denmark.
Wind energy with a share of more than 47% in 2019, is the cheapest power generation technology and one of the major clean power generation technologies is one of the significant energy generation sources.
The government of Denmark is aiming to create a fossil-free vehicle environment by 2030 and later complete independence from fossil fuels for energy generation, which makes renewable as the future of Denmark.
The Danish government has planned to phase out Coal-based plants entirely by 2030. The initiative has been backed up by one of the coal plant operator company, that will be modifying the plant to be coal-free by 2023.
Scope of the report
The Denmark power market report include:
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Key Market Trends
Wind Energy to Dominate the Market
With an installed capacity of more than 6000 MW (4416 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. 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.
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Increasing Renewable Power Generation to Drive the 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. With more than 75,000 TJ by renewables and 23,000 TJ by coal, in 2018, the power market is shifting drastically in Denmark.
In 2019, Denmark had three coal-fired thermal plants in operation. Orsted owning one of them announced, in 2017, to phase out coal from their plant by 2023. The Government is also stringent on phasing out coal entirely by 2030.
The government has been providing subsidies on renewables 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.
In 2019, Denmark's Energy and Climate agreement ensured financing of three offshore wind farms, relaxation of electricity taxes, new technology-neutral tenders, removal of the cogeneration requirement in small-scale district heating areas, new energy-saving efforts, and others.
The bold steps and visionary policies of the Denmark government are expected to drive Denmark towards a global leader in renewables.
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The Denmark power market is partially fragmented. The major companies include Vestas Wind Systems A/S, Oersted A/S, Siemens Gamesa Renewable Energy SA, Arcon-Sunmark A/S, Vattenfall A / S, and others