Denmark set to continue to lead global offshore wind
November 3, 2014 | By
Barbara Vergetis Lundin
Denmark's offshore wind power industry is expected to continue to grow thanks to extensive government support and wind turbine technology modernization, according to research and consulting firm GlobalData. In fact, the firm predicts the country's cumulative offshore wind power installed capacity to grow from 1.27 GW in 2013 to 2.24 GW by 2020.
According to the firm, excluding Greenland, Denmark is one of the leading wind power markets in the world, experiencing an increase in cumulative offshore installed capacity from 0.42 GW in 2006 to 1.27 GW in 2013 -- a Compound Annual Growth Rate (CAGR) of 17 percent. "Wind has become Denmark's most prominent renewable energy source. The country is now the second largest nation globally in terms of offshore wind power, accounting for around 7 percent of the world's total cumulative offshore installed capacity," Swati Singh, power analyst, GlobalData, said. "Denmark has set targets for wind power to account for 50 percent 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, the Danish government 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, according to GlobalData. From 2009 to 2013, Denmark's offshore wind turbine installations increased with annual investment more than doubling from $646.4 million to $1.4 billion during the same period, according to GlobalData, who expects no investment for 2014 and 2015. "This will improve again and fluctuate between 2016 and 2019, before reaching approximately $1.5 billion by 2020," Singh said. "With around thirteen major developments currently active, Denmark already has a well-established offshore wind industry. A number of upcoming projects due to be completed by the end of the forecast period will also help the country to meet its ambitious targets." For more: © 2014 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. http://www.fierceenergy.com/story/denmark-set-continue-lead-global-offshore-wind/2014-11-03 |