Denmark Power Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 5.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Denmark Power Market Analysis
The Denmark Power Market size is expected to grow from 18.80 GW in 2023 to 24.34 GW by 2028, registering a CAGR of 5.30% during the forecast period (2023-2028).
- Over the medium term, integrating renewable energy sources and supportive government policies is expected to drive the market during the forecasted period.
- On the other hand, the cost associated with the increasing infrastructure for power generation facilities and land availability in the country is expected to hinder the growth of the power market.
- Nevertheless, offshore wind energy development presents significant opportunities for the Denmark power market.
Denmark Power Market Trends
Wind Energy to Dominate the Market
- Denmark is located in a region with favorable wind conditions, particularly offshore areas. The country includes a long coastline and shallow waters, ideal for developing offshore wind farms. The abundance of wind resources provides a reliable and sustainable energy source, making wind power a compelling option for electricity generation.
- Moreover, Denmark includes a long history of pioneering wind energy technologies and established a robust wind industry. Danish companies contain expertise in designing, manufacturing, and installing wind turbines onshore and offshore. This expertise and the country's favorable wind conditions positioned Denmark as a global leader in the wind energy sector.
- According to International Renewable Energy Agency, the wind energy installed capacity grew from 6123 MW in 2018 to 7088 MW in 2022. It represents a growth rate of more than 15%, signifying the increasing wind energy deployment in the country.
- Additionally, the Danish government is highly supportive of wind energy development. It implemented feed-in tariffs, subsidies, and favorable regulatory frameworks to encourage investment in wind power projects. These supportive measures facilitated the growth of the wind energy sector and created a conducive environment for wind power to dominate the market.
- For instance, in February 2023, the Ministry of Climate, Energy, and Utilities in Denmark intends to initiate tenders for an additional 9 GW of offshore wind capacity by the end of this year. This ambitious plan aims to increase Denmark's offshore wind capacity by five times, reaching a significant milestone by 2030.
- Therefore, as per the points discussed above, wind energy is expected to dominate the power market in Denmark.
Increasing Renewable Power Generation to Drive the Market
- Denmark includes a rich history of renewable energy development and utilization. In 2020, the Danish Parliament enacted the Climate Act, establishing ambitious targets to combat climate change. According to this act, Denmark aims to achieve a 70% reduction in greenhouse gas emissions by 2030 compared to the levels recorded in 1990. Furthermore, the country is legally bound to meet these reduction targets. Additionally, Denmark set its sights on attaining climate neutrality by 2050, marking a significant commitment to addressing the global challenge of climate change.
- The growing global awareness of the urgent need to address climate change and reduce greenhouse gas emissions. Renewable power generation, such as solar, wind, hydro, and biomass, offers a cleaner and more sustainable alternative to traditional fossil fuel-based generation. Governments, businesses, and individuals increasingly prioritize renewable energy sources to mitigate environmental impacts and promote a low-carbon future.
- According to International Renewable Energy Agency, the renewable energy installed capacity grew from 10882 MW in 2021 to 11734 MW in 2022. It represents a growth rate of more than 8%, signifying the country's increasing deployment of renewable energy.
- Moreover, the cost of renewable energy technologies, particularly solar and wind, significantly declined over the years. Improved manufacturing processes, economies of scale, and technological advancements led to cost reductions in renewable power generation. As a result, renewable energy sources became more competitive with conventional fossil fuel-based generation, driving their adoption and market growth.
- For instance, in December 2022, Denmark announced that it is constructing two energy islands that could expedite Europe's transition to green energy. These islands, comprising an artificial island in the North Sea and another on the island of Bornholm in the Baltic Sea, will be hubs for wind energy generation. Furthermore, there are plans for these energy islands to produce green hydrogen power in the future, showcasing Denmark's commitment to sustainable and renewable energy sources.
- Therefore increasing adaption of renewable energy is expected to drive the market during the forecasted period.
Denmark Power Industry Overview
The Denmark power market is partially fragmented. The major companies (in no particular order) include Vestas Wind Systems A/S, Oersted A/S, Siemens Gamesa Renewable Energy SA, Arcon-Sunmark A/S, and Vattenfall A / S.
Denmark Power Market Leaders
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Vestas Wind Systems A/S
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Orsted A/S
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Siemens Gamesa Renewable Energy SA
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Arcon-Sunmark A/S
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Vattenfall A/S
*Disclaimer: Major Players sorted in no particular order
Denmark Power Market News
- October 2022: Orsted, a Danish energy company, announced its intentions to develop four new offshore wind farms, aiming to increase the country's wind power production twofold. This strategic move is part of Denmark's efforts to reduce its reliance on Russian gas and oil. Orsted partnered with investment fund Copenhagen Infrastructure Partners (CIP) to collaborate on developing approximately 5.2 GW of offshore wind capacity across four projects in Denmark, as stated in their official statement.
- June 2022: Denmark and Germany agreed to jointly finalize the development of the anticipated Bornholm Energy Island. Once completed by 2030, this groundbreaking project will become the world's first of its kind and provide green electricity to approximately 3.3 - 4.5 million households in Denmark and Germany. Moreover, this agreement enabled Denmark to expand the original planned capacity of the energy island from 2 to 3 gigawatts (GW). It further emphasizes the significant role it will play in supporting renewable energy generation.
Denmark Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Installed Capacity and Forecast in GW, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Integration of Renewable Energy
4.5.1.2 Supportive government policies in Power Plants
4.5.2 Restraints
4.5.2.1 Limited Land Availability
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Generation
5.1.1 Wind
5.1.2 Solar
5.1.3 Coal
5.1.4 Others
5.2 Transmission and Distribution
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Vestas Wind Systems A/S
6.3.2 Oersted A/S
6.3.3 Siemens Gamesa Renewable Energy SA
6.3.4 Arcon-Sunmark A/S.
6.3.5 Vattenfall A / S
6.3.6 BIGADAN A/S
6.3.7 General Electric Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Offshore Wind Development Across the Country
Denmark Power Industry Segmentation
Power generation is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it's a step before its delivery to its end users. Then the process is followed by transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the requirement of the end user.
The Denmark power market is segmented by generation and power transmission & distribution (T&D). The market is segmented by generation into wind, solar, coal, and other sources. Each segment's market sizing and forecasts are based on installed gigawatts (GW) capacity.
| Generation | |
| Wind | |
| Solar | |
| Coal | |
| Others |
Denmark Power Market Research FAQs
What is the current Denmark Power Market size?
The Denmark Power Market is projected to register a CAGR of 5.30% during the forecast period (2024-2029)
Who are the key players in Denmark Power Market?
Vestas Wind Systems A/S, Orsted A/S, Siemens Gamesa Renewable Energy SA, Arcon-Sunmark A/S and Vattenfall A/S are the major companies operating in the Denmark Power Market.
What years does this Denmark Power Market cover?
The report covers the Denmark Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Denmark Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Denmark Power Industry Report
Statistics for the 2024 Denmark Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Denmark Power analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
