The market for solar energy of Denmark in terms of installed capacity is expected to grow at a CAGR of more than 10% during the forecast period of 2020 - 2025. Factors such as encouraging government policies and pressure to meet power demand using renewables to decrease dependency on fossils are expected to create a large market for the solar industry. With the advancement in technology and increasing competition in the market, the installation and operational cost has dropped, which can open opportunities for small investors and companies. On the contrary, high initial investment, intermittent energy source, and requirement of large installation areas to set up solar farms are restraining the market from growing.
Key Highlights
- With a capacity of around 1000 MW capacity of Denmark, in 2019, the installation of Photovoltaic solar panels is expected to grow significantly, whereas Concentrated Solar Power is yet to develop in the future, with a minimal share, in 2019.
- With investments of tech giants like Google, which is going to invest in five solar projects in Denmark with a collective capacity of more than 150 MW, the share of solar energy is expected to increase considerably.
- In April 2018, the Danish government launched an energy initiative “Energy- for a green Denmark. Under which government is planning to increase renewable share and reduce the percentage of coal from the energy sector of Denmark.
Key Market Trends
Photovoltaic to Dominate the Market
- Photovoltaics (PVs) are arrays of cells containing a solar photovoltaic material that converts solar radiation or energy from the sun into direct current electricity. They consist of a variety of semiconductors, usually silicon and highly conductive wire, to reduce any current loss, which makes them expensive. But the operational cost is so low that they are expected to become cost-free after a period of 25 years according to estimation in 2018.
- Denmark has achieved more than 1000 MW of PV installation by December 2019 and is expected to increase its solar market by a CAGR of more than 10% to install 4900 MW, by 2030, according to the Danish government successfully.
- In November 2018, Danish Energy Agency announced the tender results of PV projects. It awarded 19 MW of capacity to eight bidders. Such auctions have led to the tremendous growth of the solar market and projects are expected to be operational in the forecast period.
- With the development in solar technology, prices of solar systems have fallen dramatically, which resulted in significant scale acceptance of solar panels at the residential level in Denmark. With this Levelized cost of operation has also fallen, which attracted more companies in this sector.
- Observing the ongoing project developments in PV solar panels, they are expected to hold a significant market in the energy sector of Denmark and expected to show substantial growth in the forecast period.
Upcoming Projects And Government Policies to Drive the Market
- Danish Ministry of Energy, Utilities and Climate launched an initiative “Energy-for a green Denmark”, in April 2018, with a significant aim of reducing the dependency on fossil fuels and phasing out coal-based electricity by increasing the share of renewables in energy to 50% by 2030.
- With the auction, in December 2019, the Danish government managed to reduce the average price premium to be paid on top of wholesale electricity rates to the successful bidders by 30% in a year and successfully auctioned 83 MW of solar projects and 93 MW of solar-wind hybrid projects.
- In September 2019, Google announced to invest in five different Danish solar projects with a collective capacity of 161 MW. The capacity of each project is 17 MW, 23 MW, 41 MW, 25 MW, and 55 MW. The projects are estimated to be operational in the late 2020s.
- With ongoing steps of the Denmark Government and their future policies, the solar market is going to grow at a significant rate in the new future.
Competitive Landscape
The Denmark solar energy market is partially consolidated. The major companies include Oersted A/S, BeGreen A/S, Better Energy A/S, Arcon-Sunmark A/S, Danish Solar Energy Ltd., and others.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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