Denmark Renewable Energy Market

Denmark renewable energy market, valued at USD 22 billion, features strong growth in offshore wind and solar, supported by policies for climate neutrality and investments in smart grids.

Region:Europe

Author(s):Dev

Product Code:KRAA1573

Pages:88

Published On:August 2025

About the Report

Base Year 2024

Denmark Renewable Energy Market Overview

  • The Denmark Renewable Energy Market is valued at USD 22 billion, based on a five-year historical analysis. This reflects Denmark’s large installed base in wind and bioenergy, expanding solar PV, and robust electricity and heat markets supported by renewables, underpinned by long-standing policy commitments to phase out fossil fuels and reach climate neutrality.
  • Key players in this market include cities like Copenhagen and Aarhus, which dominate due to their strategic investments in renewable infrastructure and technology. Denmark’s extensive coastline and mature offshore wind ecosystem have enabled large utility-scale projects and a specialized supply chain centered around these urban hubs, supported by national planning and grid integration through Energinet.
  • In 2023, Denmark’s government implemented a new regulation mandating that all new buildings must be equipped with renewable energy systems, such as solar panels or heat pumps. This aligns with Denmark’s roadmap toward full renewable supply by 2050 and widespread deployment of renewable heating solutions in district heating and buildings.
Denmark Renewable Energy Market Size

Denmark Renewable Energy Market Segmentation

By Type:The renewable energy market in Denmark is segmented into various types, including Solar PV, Onshore Wind, Offshore Wind, Bioenergy (Biogas, Biomass, Waste-to-Energy), Hydropower (Micro/Small-Scale), Renewable Heating & Cooling (Solar Thermal, District Heating), and Power-to-X (Green Hydrogen, e-fuels). Among these, Offshore Wind is the leading segment due to Denmark’s favorable wind conditions and established infrastructure, contributing significantly to the country’s energy mix.

Denmark Renewable Energy Market segmentation by Type.

By End-User:The end-user segmentation of the renewable energy market in Denmark includes Residential, Commercial & Public Sector, Industrial & Heavy Energy Users, and Utilities & Transmission System Operators. The Residential segment is currently the most significant, driven by increasing consumer awareness and incentives for renewable heating (e.g., district heating integration, heat pumps) and rooftop solar uptake.

Denmark Renewable Energy Market segmentation by End-User.

Denmark Renewable Energy Market Competitive Landscape

The Denmark Renewable Energy Market is characterized by a dynamic mix of regional and international players. Leading participants such as Ørsted A/S, Vestas Wind Systems A/S, Siemens Gamesa Renewable Energy S.A., Nordex SE, Vattenfall A/S, Energinet (TSO), Copenhagen Infrastructure Partners (CIP), Better Energy A/S, European Energy A/S, HOFOR A/S (Greater Copenhagen Utility), Andel (formerly SEAS-NVE), Bioenergy & Biogas: Nature Energy Biogas A/S, Arcon-Sunmark A/S (solar thermal), NRGi A.M.B.A., Aker Offshore Wind/ Mainstream Renewable Power Denmark ApS contribute to innovation, geographic expansion, and service delivery in this space.

Ørsted A/S

1972

Fredericia, Denmark

Vestas Wind Systems A/S

1945

Aarhus, Denmark

Siemens Gamesa Renewable Energy S.A.

2017

Madrid, Spain

Nordex SE

1985

Hamburg, Germany

Vattenfall A/S

1909

Stockholm, Sweden

Company

Establishment Year

Headquarters

Scale (Global/OEM, Utility, IPP, TSO/DSO, Developer)

Installed Capacity in Denmark (MW, by technology)

3-Year Capacity Additions in Denmark (MW)

Project Pipeline (MW, secured/awarded)

Average PPA/auction price for recent awards (EUR/MWh)

Capacity Factor / Availability (by asset class)

Denmark Renewable Energy Market Industry Analysis

Growth Drivers

  • Increasing Government Support for Renewable Initiatives:The Danish government allocated approximately DKK 13 billion (USD 1.9 billion) in future to support renewable energy projects, reflecting a commitment to achieving 70% greenhouse gas reduction by 2030. This funding is directed towards wind, solar, and bioenergy projects, enhancing the overall investment climate. Additionally, the government aims to create 50,000 new jobs in the renewable sector by 2030, further driving growth and innovation in the industry.
  • Technological Advancements in Energy Storage:In future, Denmark is expected to invest around DKK 5 billion (USD 750 million) in energy storage technologies, particularly lithium-ion batteries and pumped hydro storage. These advancements are crucial for integrating renewable energy sources into the grid, allowing for better management of supply and demand. The increased efficiency of energy storage systems is projected to enhance grid stability, enabling a higher penetration of renewables, which is essential for Denmark's energy transition goals.
  • Rising Consumer Demand for Sustainable Energy:A survey conducted in early future indicated that 78% of Danish consumers prefer renewable energy sources over fossil fuels, driving demand for sustainable energy solutions. This shift is supported by a growing awareness of climate change and environmental issues. As a result, energy providers are increasingly offering green energy tariffs, with over 1.5 million households opting for renewable energy contracts, significantly boosting the market for renewable energy in Denmark.

Market Challenges

  • High Initial Investment Costs:The upfront costs for renewable energy projects in Denmark remain a significant barrier, with average investments for offshore wind farms reaching DKK 30 billion (USD 4.3 billion) per project. These high initial costs can deter potential investors and slow down the deployment of renewable technologies. Despite government incentives, the financial burden associated with these projects can limit participation from smaller companies and local developers, impacting overall market growth.
  • Regulatory Uncertainties:Regulatory frameworks in Denmark are subject to frequent changes, creating uncertainty for investors. In future, the Danish Energy Agency is expected to revise several key regulations, which could affect project timelines and costs. This unpredictability can lead to hesitance among stakeholders, as they may delay investments until clearer guidelines are established. Such uncertainties can hinder the pace of renewable energy adoption and infrastructure development in the market.

Denmark Renewable Energy Market Future Outlook

The future of the Denmark renewable energy market appears promising, driven by a combination of government support, technological advancements, and increasing consumer demand. By future, the country aims to have 80% of its electricity generated from renewable sources, with significant investments in offshore wind and solar energy. Additionally, the integration of smart grid technologies is expected to enhance energy efficiency and reliability, paving the way for a more sustainable energy landscape. Continued collaboration between public and private sectors will be crucial for achieving these ambitious goals.

Market Opportunities

  • Expansion of Offshore Wind Farms:Denmark's strategic location offers vast potential for offshore wind energy, with plans to increase capacity by 3,000 MW by future. This expansion is expected to attract over DKK 20 billion (USD 3 billion) in investments, creating thousands of jobs and significantly contributing to the national grid's renewable energy share.
  • Development of Smart Grid Technologies:The Danish government is investing DKK 2 billion (USD 300 million) in smart grid initiatives in future. These technologies will enhance energy management, improve grid reliability, and facilitate the integration of distributed energy resources, providing a substantial opportunity for innovation and growth in the renewable energy sector.

Scope of the Report

SegmentSub-Segments
By Type

Solar PV

Onshore Wind

Offshore Wind

Bioenergy (Biogas, Biomass, Waste-to-Energy)

Hydropower (Micro/Small-Scale)

Renewable Heating & Cooling (Solar Thermal, District Heating)

Power-to-X (Green Hydrogen, e-fuels)

By End-User

Residential

Commercial & Public Sector

Industrial & Heavy Energy Users

Utilities & Transmission System Operator

By Application

Grid-Connected

Off-Grid & Islanded Microgrids

Rooftop and Distributed Generation

Utility-Scale Projects

By Investment Source

Domestic (Utilities, Co-ops, Pension Funds)

Foreign Direct Investment (FDI)

Public-Private Partnerships (PPP)

Government Programs & Tenders

By Policy Support

Auctions/Contracts for Difference (CfD)

Tax Incentives & Depreciation

Guarantees of Origin (GoO) & Renewable Energy Certificates

By Distribution Mode

Direct Power Purchase Agreements (PPAs)

Retail Suppliers & Utilities

Energy Communities & Cooperatives

By Price Range

Low LCOE

Medium LCOE

High LCOE

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Danish Energy Agency, Ministry of Climate, Energy and Utilities)

Energy Producers and Utility Companies

Renewable Energy Project Developers

Environmental NGOs and Advocacy Groups

Energy Technology Innovators and Startups

Infrastructure and Construction Firms

Insurance Companies and Risk Management Firms

Players Mentioned in the Report:

rsted A/S

Vestas Wind Systems A/S

Siemens Gamesa Renewable Energy S.A.

Nordex SE

Vattenfall A/S

Energinet (TSO)

Copenhagen Infrastructure Partners (CIP)

Better Energy A/S

European Energy A/S

HOFOR A/S (Greater Copenhagen Utility)

Andel (formerly SEAS-NVE)

Bioenergy & Biogas: Nature Energy Biogas A/S

Arcon-Sunmark A/S (solar thermal)

NRGi A.M.B.A.

Aker Offshore Wind/ Mainstream Renewable Power Denmark ApS

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Denmark Renewable Energy Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Denmark Renewable Energy Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Denmark Renewable Energy Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Government Support for Renewable Initiatives
3.1.2 Technological Advancements in Energy Storage
3.1.3 Rising Consumer Demand for Sustainable Energy
3.1.4 International Climate Agreements and Commitments

3.2 Market Challenges

3.2.1 High Initial Investment Costs
3.2.2 Regulatory Uncertainties
3.2.3 Competition from Fossil Fuels
3.2.4 Infrastructure Limitations

3.3 Market Opportunities

3.3.1 Expansion of Offshore Wind Farms
3.3.2 Development of Smart Grid Technologies
3.3.3 Increased Investment in Bioenergy
3.3.4 Growth in Energy Efficiency Solutions

3.4 Market Trends

3.4.1 Shift Towards Decentralized Energy Production
3.4.2 Integration of AI in Energy Management
3.4.3 Rise of Community Energy Projects
3.4.4 Focus on Circular Economy Practices

3.5 Government Regulation

3.5.1 Renewable Energy Act Updates
3.5.2 Feed-in Tariff Adjustments
3.5.3 Emission Reduction Targets
3.5.4 Grid Access Regulations

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Denmark Renewable Energy Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Denmark Renewable Energy Market Segmentation

8.1 By Type

8.1.1 Solar PV
8.1.2 Onshore Wind
8.1.3 Offshore Wind
8.1.4 Bioenergy (Biogas, Biomass, Waste-to-Energy)
8.1.5 Hydropower (Micro/Small-Scale)
8.1.6 Renewable Heating & Cooling (Solar Thermal, District Heating)
8.1.7 Power-to-X (Green Hydrogen, e-fuels)

8.2 By End-User

8.2.1 Residential
8.2.2 Commercial & Public Sector
8.2.3 Industrial & Heavy Energy Users
8.2.4 Utilities & Transmission System Operator

8.3 By Application

8.3.1 Grid-Connected
8.3.2 Off-Grid & Islanded Microgrids
8.3.3 Rooftop and Distributed Generation
8.3.4 Utility-Scale Projects

8.4 By Investment Source

8.4.1 Domestic (Utilities, Co-ops, Pension Funds)
8.4.2 Foreign Direct Investment (FDI)
8.4.3 Public-Private Partnerships (PPP)
8.4.4 Government Programs & Tenders

8.5 By Policy Support

8.5.1 Auctions/Contracts for Difference (CfD)
8.5.2 Tax Incentives & Depreciation
8.5.3 Guarantees of Origin (GoO) & Renewable Energy Certificates

8.6 By Distribution Mode

8.6.1 Direct Power Purchase Agreements (PPAs)
8.6.2 Retail Suppliers & Utilities
8.6.3 Energy Communities & Cooperatives

8.7 By Price Range

8.7.1 Low LCOE
8.7.2 Medium LCOE
8.7.3 High LCOE

9. Denmark Renewable Energy Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Scale (Global/OEM, Utility, IPP, TSO/DSO, Developer)
9.2.3 Installed Capacity in Denmark (MW, by technology)
9.2.4 3-Year Capacity Additions in Denmark (MW)
9.2.5 Project Pipeline (MW, secured/awarded)
9.2.6 Average PPA/auction price for recent awards (EUR/MWh)
9.2.7 Capacity Factor / Availability (by asset class)
9.2.8 Capex per MW (indicative, recent projects)
9.2.9 EBITDA margin (renewables segment, latest FY)
9.2.10 Leverage ratio (Net debt/EBITDA)
9.2.11 Opex per MW per year
9.2.12 Safety performance (TRIR/LTIFR)
9.2.13 Sustainability KPIs (Scope 1–3 intensity, RE100, SBTi)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Ørsted A/S
9.5.2 Vestas Wind Systems A/S
9.5.3 Siemens Gamesa Renewable Energy S.A.
9.5.4 Nordex SE
9.5.5 Vattenfall A/S
9.5.6 Energinet (TSO)
9.5.7 Copenhagen Infrastructure Partners (CIP)
9.5.8 Better Energy A/S
9.5.9 European Energy A/S
9.5.10 HOFOR A/S (Greater Copenhagen Utility)
9.5.11 Andel (formerly SEAS-NVE)
9.5.12 Bioenergy & Biogas: Nature Energy Biogas A/S
9.5.13 Arcon-Sunmark A/S (solar thermal)
9.5.14 NRGi A.M.B.A.
9.5.15 Aker Offshore Wind/ Mainstream Renewable Power Denmark ApS

10. Denmark Renewable Energy Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Energy Procurement Strategies
10.1.2 Budget Allocation for Renewable Projects
10.1.3 Collaboration with Private Sector

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Renewable Energy Infrastructure
10.2.2 Budget Trends for Energy Efficiency
10.2.3 Corporate Sustainability Goals

10.3 Pain Point Analysis by End-User Category

10.3.1 Cost of Transitioning to Renewables
10.3.2 Reliability of Energy Supply
10.3.3 Regulatory Compliance Challenges

10.4 User Readiness for Adoption

10.4.1 Awareness of Renewable Options
10.4.2 Financial Readiness for Investment
10.4.3 Technical Capability for Implementation

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Energy Savings
10.5.2 Expansion into New Applications
10.5.3 Long-term Sustainability Assessments

11. Denmark Renewable Energy Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Framework


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government reports on renewable energy policies and targets in Denmark
  • Review of industry publications and market analysis reports from energy think tanks
  • Examination of statistical data from the Danish Energy Agency and Eurostat

Primary Research

  • Interviews with key stakeholders in the renewable energy sector, including project developers and utility executives
  • Surveys targeting energy policy experts and environmental consultants
  • Field interviews with technology providers and equipment manufacturers in the renewable energy space

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including market reports and expert opinions
  • Triangulation of quantitative data with qualitative insights from industry experts
  • Sanity checks through peer reviews and expert panel discussions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total renewable energy capacity based on national energy consumption statistics
  • Segmentation of the market by energy source (wind, solar, biomass, etc.) and application
  • Incorporation of government incentives and subsidies impacting market growth

Bottom-up Modeling

  • Collection of project-level data from ongoing and completed renewable energy projects
  • Cost analysis based on installation, operation, and maintenance expenses for different technologies
  • Volume and pricing analysis for energy produced from renewable sources

Forecasting & Scenario Analysis

  • Multi-variable forecasting models incorporating technological advancements and policy changes
  • Scenario analysis based on varying levels of investment and regulatory support
  • Development of baseline, optimistic, and pessimistic growth projections through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Wind Energy Project Developers100Project Managers, Business Development Executives
Solar Energy Installers80Operations Managers, Sales Directors
Biomass Energy Producers60Technical Directors, Environmental Compliance Officers
Energy Policy Experts50Regulatory Affairs Specialists, Policy Analysts
Renewable Energy Equipment Manufacturers70Product Managers, R&D Engineers

Frequently Asked Questions

What is the current value of the Denmark Renewable Energy Market?

The Denmark Renewable Energy Market is valued at approximately USD 22 billion, reflecting significant investments in wind, bioenergy, and solar PV, supported by strong government policies aimed at phasing out fossil fuels and achieving climate neutrality by 2050.

Which cities are leading in Denmark's renewable energy initiatives?

What recent regulations has the Danish government implemented regarding renewable energy?

What are the main types of renewable energy sources in Denmark?

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