News Release from GlobalData

Wind Industry Profile of

GlobalData

07/29/2022

Denmark to accelerate renewable power development to overcome dependence on Russian gas, says GlobalData

The recent Russia-Ukraine conflict has dented Denmark’s gas supply, as nearly 75% of the country’s gas imports are provided by Russia via a pipeline through Germany, says GlobalData. The leading data and analytics company notes that the government’s pledge to step up its renewable development program, by increasing the number of solar photovoltaic (PV) and onshore wind plants by 2030, will secure Denmark’s electricity supply in the long-term as 97% of its electricity generation by 2035 will be renewable power.

GlobalData’s latest report, ‘Denmark Power Market Size and Trends by Installed Capacity, Generation, Transmission, Distribution, and Technology, Regulations, Key Players and Forecast, 2022-2035’, reveals that in the short-term Denmark will look to import gas from its European connections. This predicament arose due to the renovation of the Tyra field in the North Sea. Since its inception in 1984, the gas field catered to a major portion of Denmark’s gas needs. Its renovation work is expected to be completed by mid-2023, which reduces dependency on gas imports.

Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, comments: “Denmark has planned steady investments in offshore wind power, which is expected to become the primary technology in the generation mix of the country by 2026. Currently, the country is expected to continue importing power owing to the intermittent availability of wind energy. It imports power from Sweden and Norway and exports it to Germany. Interconnectivity with neighbouring countries, especially within the Nordic pool, is important within the scheme of supply security. For example, Sweden and Norway are rich in hydropower, while Denmark is a leader in wind and is also making rapid advances in solar power. Exchanges within these countries, therefore, help to enhance supply security.”

Image: GlobalData

Saibasan continues: “The European Commission has been under pressure to impose sanctions on Russia. Currently, the EU has agreed to reduce the dependency of its member countries on Russian gas by two-thirds this year. The Danish government was already taking steps to move away from Russian dependence for its natural gas needs.”

In April 2022, the EU countries revealed individual plans to reduce their dependence on Russian fossil fuels. Denmark had presented in its plan to convert over half of the 380,000 households that are heated through gas power to district heating networks or electric heat pumps by 2028. For other households, the government aims to cater through biogas power.

Saibasan adds: “The Danish government will look to create a seamless flow to direct investments into renewable power development and will look for private participation to expedite the procurement and implementation of projects.”