ENB Pub Note: The Danish power mix is interesting and interconnected, and an update is below on their plans for a 3 GW offshore wind tender.
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Wind Power: ~57% of electricity generation. Denmark is a global leader in wind energy, with both onshore and offshore wind farms contributing significantly. Offshore wind alone has grown, with major projects like Kriegers Flak and Horns Reef 3 boosting capacity.
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Bioenergy: ~21% of electricity generation. This includes biomass (e.g., wood pellets, straw) and biodegradable waste, widely used in combined heat and power (CHP) plants. Bioenergy is also a major contributor to district heating.
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Solar Power: ~11% of electricity generation. Solar has seen steady growth, particularly in 2022–2023, as Denmark diversifies its renewable portfolio.
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Fossil Fuels: ~12% of electricity generation, with coal at ~6% and natural gas at ~2%. Coal use dropped 36% in 2023, hitting a historic low, and natural gas is being phased out, with plans to end individual gas heating by 2035.
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Net Imports: ~10% of electricity consumption. Denmark imports low-carbon electricity, mainly hydroelectricity from Norway and a mix of hydro and nuclear from Sweden, to balance its grid, especially during low wind periods.
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Denmark aims for 100% renewable electricity by 2030 and a fossil-free energy system by 2050.
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Coal is set to be phased out by 2028, with two remaining coal plants given a temporary reprieve until June 2024 due to the energy crisis.
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District heating, often powered by biomass and waste heat from CHP plants, supplies nearly two-thirds of households, reducing reliance on fossil fuels for heating.
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CO2 emissions from electricity have plummeted, with 2024 estimates at 96 g CO2/kWh, a 74% drop since 2013, driven by renewables and reduced coal use.
The Danish government has revealed it would launch a 3GW offshore wind tender this autumn. The country also decided to support developers with two-sided contracts for difference after last year’s tender attracted no bids.
The three tenders cover two areas in the Danish North Sea and one in the waters separating Denmark and Sweden. Nordsøen Midt and Hesselø will have a bidding deadline in the spring of 2026, while Nordsøen Syd will have a bidding deadline in the autumn of 2027. The first two are expected to come online by 2032 while the final one is set to be completed in 2033.
According to the government’s statement, the three wind farms will consist of 150 turbines of 20MW each. The turbines will have a 150-meter-high tower and a blade diameter of 260 m.
The new tender will replace the 3GW North Sea auction from last year, which failed to attract bids due to a lack of government subsidies.
Danish authorities revealed that they would offer up to DKK 55.2bn ($8.3bn) for the upcoming tender in total insurance coverage for the upcoming tender, with DKK 27.6bn ($4.17bn) made immediately available. This, however, does not mean that all of the funds will be awarded.
“We need more secure green power and energy to make Denmark and Europe independent of energy from Russia. There have been bumps in the road globally in getting offshore wind up in recent years, and that is why we have also agreed that the state will lend a helping hand to the projects if necessary,” said Lars Aagaard, Denmark’s energy minister.
The wind farms, when completed, would more than double Denmark’s offshore wind energy production, which currently amounts to 2.7GW. The country has set a target to increase its wind energy production capacity to 14GW by 2030.
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