Denmark Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

Denmark renewable energy market size in 2026 is estimated at 16.16 gigawatt, growing from 2025 value of 14.44 gigawatt with 2031 projections showing 28.39 gigawatt, growing at 11.93% CAGR over 2026-2031. This report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Denmark Renewable Energy Market Trends and Insights

National 70% GHG-Reduction Target Accelerates Build-out

The Climate Act of 2020 locks in a 70% emissions reduction mandate by 2030, pushing developers to add 8 GW of new capacity in six years. The Denmark renewable energy market gains predictability as annual compliance reviews trigger subsidy tweaks rather than policy U-turns. Sector coupling deepens the addressable load because megawatts must serve electrolysers, heat pumps, and EV chargers, increasing the marginal value of each project. Offshore wind is allocated 4.5 GW of the 2024-2030 build plan, while 1.7 GW is allocated to hybrid projects that combine wind, solar, and battery storage. Ørsted raised EUR 1.75 billion in a May 2024 green bond, signaling financiers’ confidence that statutory goals will not be diluted.

Energy-Island & Offshore-Hub Programme

The Bornholm and North Sea islands amount to Denmark’s largest energy infrastructure since the Great Belt link, with 6 GW slated for completion in 2030 and modular expansion to 10 GW by 2040. EU Innovation Fund grants of EUR 645 million enable the construction of subsea HVDC cables to Germany and Poland, allowing for the export of surplus power while importing balancing electricity. The islands serve as grid stability anchors by clustering synchronous condensers and battery farms offshore, thereby trimming system balancing costs by 12% compared to dispersed projects. Copenhagen Infrastructure Partners committed EUR 2.3 billion to Bornholm in 2024, underlining how de-risked the scheme has become. The Denmark renewable energy market, therefore, sees the islands not only as generation assets but as modular nodes for hydrogen production and data-center colocation.

Grid Congestion & Curtailment Risk

Western Denmark curtailed 1.4 TWh of wind output in 2023, 40% more than in 2022, largely because the 400 kV backbone cannot export surplus power from Jutland to Zealand. Energinet is investing DKK 40 billion through 2030 in a 600 MW Jutland-Funen link, a 1,200 MW subsea cable to Germany, and onshore upgrades. Until these assets go live, curtailment will reduce revenue for projects in high-penetration zones and deter corporate PPA buyers who are sensitive to volume penalties. Dynamic-access pilots that allow for 20% overplanting in exchange for higher curtailment may unlock 800 MW of extra capacity by 2027; however, developers still price congestion risk into bids, tempering the near-term growth of the Denmark renewable energy market.

Other drivers and restraints analyzed in the detailed report include:

• Power-to-X Hydrogen Pipeline Bankability
• Corporate Solar & Wind PPAs from Data-center Cluster
• Lengthy Permitting for Onshore Repowering

Segment Analysis

Wind energy contributed 56.20% of the installed capacity and retained the largest share of the Danish renewable energy market in 2025, thanks to flagship offshore assets such as Horns Rev 3 and Kriegers Flak. Upcoming energy-island tenders will add 6 GW, while onshore repowering replaces vintage machines with 5 MW-class units powered by Vestas V236 turbines. These upgrades reduce levelized costs by 18%, further strengthening the Danish renewable energy market. Geothermal’s footprint was under 50 MW in 2024; yet, the segment is set to climb at a 47.52% CAGR through 2031 as Copenhagen and Aarhus integrate subsurface heat into their district-heating networks. Solar PV growth stems from corporate rooftops and utility parks linked to hyperscale PPAs, while bioenergy fills dispatchable gaps despite RED III sustainability scrutiny. Ocean energy remains pre-commercial, but wave-power pilots off Hanstholm may scale after 2030.

A maturing turbine supply chain and HVDC rollout underpin the Denmark renewable energy market size for offshore projects, while rooftop solar growth helps keep urban emissions in check. Bioenergy’s share could shrink if forest-biomass audits disqualify pellets, yet biogas injections from agricultural waste offer a low-carbon bridge. Overall, diversified technologies mitigate intermittency and position the Denmark renewable energy market for stable expansion even amid changing policy incentives.

Complete Report Scope:

• By Technology
  • Solar Energy (PV and CSP)
  • Wind Energy (Onshore and Offshore)
  • Hydropower (Small, Large, PSH)
  • Bioenergy
  • Geothermal
  • Ocean Energy (Tidal and Wave)
• By End-User
  • Utilities
  • Commercial and Industrial
  • Residential

List of Companies Covered in this Report:

• Ørsted A/S
• Vestas Wind Systems A/S
• Siemens Gamesa Renewable Energy S.A.
• Better Energy A/S
• European Energy A/S
• Copenhagen Infrastructure Partners (CIP)
• Arcon-Sunmark A/S
• Bigadan A/S
• Vattenfall A/S (Denmark)
• Aalborg CSP A/S
• Green Power Denmark
• HOFOR Vind
• Andel Energi
• Energinet (TSO)
• NRGi Renewables
• EWII Renewables
• Seas-NVE Holdings
• TotalEnergies Denmark Renewables
• Shell Recharge (Denmark)
• Østkraft A/S

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support