Wind power to become Denmark's largest energy source

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11 August 2014, Gas, Electricity, Nuclear, Solar, Wind

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In Denmark more than 66% of its conventional thermal generation comes from coal, and in turn conventional thermal generation accounts for 48% of total energy production. As Denmark implements its renewable energy policies usage of fossil fuels will diminish, and by 2030 electricity generated from coal will decline 60% from 12.3TWh in 2013 to 4.9TWh.

Denmark has long been a leader in renewable energy, particularly wind. By 2030, 81% of the country's power production will be accounted for by renewable technologies. This achievement is an example to other European countries, and the Danes should make significant returns from exporting surplus energy to neighboring nations, particularly Germany.

25 years ago Denmark generated a mere 610GWt of electricity via wind power annually, and its total wind capacity was slightly greater than 343MW. In recent years the country has been quick to capitalize on its breezy and expansive coastline, which is ideally suited for offshore wind parks. Vestas, a Danish wind turbine manufacturer, seller, and servicer, is the world's largest wind company.

Wind power will grow steadily in Denmark, with production anticipated to reach nearly 20TWh by 2030. Nevertheless, wind power is not the only item on Denmark's energy generation agenda. The country is also focusing on bioenergy, and Datamonitor Energy forecasts that generation will grow to 14.9TWh by 2030. In fact bioenergy will be the fastest-growing energy source in the country, recording a compound annual growth rate of 7.9% to 2030.

The viability of converting Denmark's older coal and natural gas plants to biomass is attractive and in some cases more cost-effective than building capacity from scratch. In the next three years, two coal-fired power plants (Avedore 1 and Studstrup) and two gas-fired plants (Avedore 2 and Skaerbaek) will be converted to biomass, accounting for 1.9GW of extra biomass capacity. Denmark will become a net exporter of 500GW of electricity in 2017. Thereafter, the country will export between 0.7-7.9TWh of electricity over 2017-30. The Danish industrial sector may be riding through a trough presently, but its energy sector is set to reach new highs from 2017 onwards. / / @DatamonitorEN

Source: MarketLine

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