Extensive government support and wind turbine technology modernization will assist the continued growth of Denmark’s cumulative offshore wind power installed capacity, from 1.27 GW in 2013 to 2.24 GW by 2020, according to research and consulting firm GlobalData.
The company’s report, Offshore Wind Turbines and Foundations – Global Market Size, Market Share, Regulations and Key Country Analysis to 2020, states that Denmark, excluding Greenland, is one of the leading wind power markets in the world. The country’s cumulative offshore installed capacity witnessed an increase from 0.42 GW in 2006 to 1.27 GW in 2013, at an impressive Compound Annual Growth Rate (CAGR) of 17%.
“Wind has become Denmark’s most prominent renewable energy source,” says Swati Singh, an analyst for GlobalData. “The country is now the second largest nation globally in terms of offshore wind power, accounting for around 7% of the world’s total cumulative offshore installed capacity. Denmark has set targets for wind power to account for 50% of its power generation by 2020, and for developing 1.5 GW of new offshore capacity by the end of the same year. As a result, the government is increasingly supporting its offshore wind sector to help achieve these goals.”
In addition to focusing on offshore wind farm cost reductions, GlobalData states that the Danish government also provides Feed-in-Tariffs, quota obligations with tradable green certificates, tender procedures, and fiscal incentives and grants to encourage more offshore wind and other renewable power developments.
“Denmark’s offshore wind turbine installations increased from 2009 to 2013, with annual investment more than doubling from $646.4 million to $1.4 billion during the same period,” says Singh. “Although no investment is expected for 2014 and 2015, this will improve again and fluctuate between 2016 and 2019, before reaching approximately $1.5 billion by 2020.”
Filed Under: News, Offshore wind