Denmark currently has approximately 3.529 GW of installed solar photovoltaic (PV) capacity. ⁶

Denmark’s projected total solar panel production capacity is expected to reach 9 GW by the year 2030. This projection reflects the country’s commitment to expanding its renewable energy sources, aiming for 100% renewable electricity by 2030 and 100% renewable energy by 2050. ⁷

The cost of wind energy is approximately 0.045 $/kWh for generation, with an additional handling cost of 0.006 $/kWh. ⁸

At the end of 2022, the average price of natural gas was $0.11 per MWh. ⁹

As of September 2024, the average cost of electricity generated from solar power was approximately 0.0025 $/kWh. ¹⁰

In Denmark, the percentages of various electricity generation sources are as follows: ¹¹

• Wind Energy: 54%
• Bioenergy and Waste: 23%
• Solar Energy: 6.3%
• Coal: 13%
• Natural Gas: 2.9%
• Oil: 0.9%

These figures indicate that renewable sources collectively accounted for approximately 83.3% of Denmark’s total electricity generation. ¹²

Denmark has a very stable power infrastructure, and the Denmark power supply is recognized for having the fewest interruptions in Europe. Power outages are infrequent, with the average consumer experiencing only about 0.48 power supply interruptions annually, totaling approximately 21.9 minutes of blackout time each year.¹³

As of 2021, Denmark deployed around 667.6 MW of new solar PV capacity, with about 94% coming from utility-scale solar plants. The remaining 6% was mainly from commercial and industrial rooftop systems. Industrial and commercial rooftop installations reached 22.6 MW, and residential arrays totaled 13.8 MW. ¹⁴

There are approximately 70 solar farms in Denmark, but this number is changing rapidly due to new projects and developments in renewable energy policies. ¹⁵

Denmark has primarily focused on grid-connected solar systems, but there is growing interest in off-grid solutions, especially in rural and isolated areas. One example is the off-grid Danish Island of Livø, which was not connected to the mainland grid. The island has achieved a secure power supply with hybrid solar and wind power systems and aims to reach 100% renewable energy self-sufficiency. ¹⁸

¹⁹ Major drivers of solar PV expansion in Denmark have included large utility-scale solar parks. However, the new grid connection scheme implemented in January 2023 has made solar PV development less attractive for developers, leading to a significant projected decrease in installation rates. In 2022, approximately 1,600 MW of new installations were added, but this fell to around 878 MW in 2023, representing a 45% decrease.

Despite these regulatory changes, growing interest in corporate power purchase agreements (PPAs) may help sustain some level of demand for solar installations.

Looking ahead, Denmark is expected to emerge as a highly attractive and promising solar energy market starting in 2025, with solar power capacity projected to increase from 3,140 MW in 2022 to 12,646 MW by 2028, driven by ambitious political climate goals and supportive market dynamics.

• The average monthly salary in Denmark is approximately $6,980. ²⁰
• Solar Engineer: the average monthly salary is approximately $8,536. ²¹
• Solar Energy Installation Manager: the average monthly salary is approximately $8,158. ²²
• Solar Energy Systems Engineer: the average monthly salary is approximately $5,500. ²³
• Solar Photovoltaic Installer: the average monthly salary is approximately $3,685. ²⁴

The current population of Denmark is 5,982,204. ²⁵

Estimate for Factory Rent ²⁶

As of 2023, the average annual rent for warehouses was approximately $148.25 per square meter at the national level, compared to $177.90 per square meter in the Copenhagen Region.

Industrial Electricity Rates ⁴

The electricity cost for business users as of December 2023 was approximately 0.243 $/kWh. This price includes the cost of power, distribution, transmission, and all related taxes and fees.

Water Costs ²⁷

The average water tariff for business users is approximately 9.92 $/m3. This price includes both the drinking water and wastewater components.

Salaries and Wages ^{21 24}

Worker of solar industry in Denmark earn between $3,685 and $8,536 monthly, depending on the position.

Rent for Office Space ²⁸

In 2023, the monthly rent for prime office spaces in Copenhagen was approximately 23.22 $/m2.

Insurance ²⁹

The average spending per capita in the non-life insurance market in Denmark is estimated to be $1,482 in 2024.

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Energy Mix

Denmark has made significant advancements in its energy infrastructure, particularly in the realm of renewable energy, with a commitment to reducing carbon emissions and transitioning to sustainable energy sources. The country has invested heavily in wind and solar power, making it one of the top countries in Europe for renewable energy usage:

• Wind power accounted for more than half of the renewable energy production in Denmark in 2023.
• Solar power production increased by almost a third from 2022 to 2023.

As of 2022, Denmark ranks third in the EU for solar power capacity per capita, with an impressive 675 watts per capita. This marks a significant increase from 426 watts per capita in the previous year, showcasing rapid growth in solar installations.

Overall, renewables accounted for 83% of the power mix in 2022.

Infrastructure and Interconnections

Denmark has a well-developed electricity transmission system and is enhancing interconnections with neighboring countries like Germany and the Netherlands to meet its renewable energy goals.

Energinet, the Danish transmission system operator, is investing DKK 41 billion from 2023 to 2026 to expand and strengthen the Danish electricity transmission grid. This includes establishing 3,300 km of new underground cables or overhead lines and expanding 70 high-voltage substations to handle more renewable energy from wind and solar.

An additional 100 major expansion and reinvestment projects are planned, with potentially another 100 large-scale projects to follow.

Export and Import

Denmark relies on imported electricity to meet its needs, with domestic production covering 83% of consumption and net imports accounting for 17%. While the imported electricity is primarily low-carbon, it comes from different sources than Denmark’s own production. Specifically, Denmark imports hydroelectric power from Norway and both hydroelectric and nuclear power from Sweden.

Policy Goal

The Danish Energy Agency (DEA), under the Ministry of Climate, Energy and Utilities, is responsible for energy policy and planning.

Denmark aims to supply 100% of its power consumption with renewables by 2027.

The country plans to reduce greenhouse gas emissions by 70% by 2030 and reach carbon neutrality by 2045.

Denmark is committed to phasing out fossil fuel extraction by 2050.

Denmark has established a comprehensive regulatory framework surrounding solar panel production, aimed at promoting the growth of solar energy while addressing concerns from various stakeholders in the market. ^{34 35 36}

Government Strategy on Solar Power

The Danish government has developed a new strategy to enhance solar power deployment as part of its green transition. This strategy focuses on streamlining the legal and administrative processes for solar projects to facilitate faster development and financing.

The strategy identifies five key areas:

• Fast-tracking the green transition.
• Encouraging solar panels in rural areas.
• Promoting solar panels on rooftops.
• Supporting solar installations on public buildings.
• Encouraging small energy cooperatives.

Technical Regulations

Grid Connection Requirements: The Danish transmission system operator, Energinet, has established technical regulations for photovoltaic (PV) power plants, particularly those with a capacity above 11 kW. These regulations outline the technical requirements for connecting solar power systems to the public electricity supply grid.

Regulatory Framework: The regulations include provisions for the operational characteristics that PV power plants must maintain throughout their service life, ensuring reliability and quality in energy production.

Support Schemes and Financial Incentives

Historical Support: Historically, solar PV installations in Denmark have relied on various financial support mechanisms, including subsidies and tax incentives. While these have helped spur initial growth, current policies focus on allowing the market to operate on commercial terms without new subsidies for new installations.

Local Acceptance Schemes: The Danish Energy Agency administers several schemes to promote local acceptance of renewable energy projects, including compensation for property value loss and bonuses for neighbors of renewable energy installations.

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Investments in Solar Power

• The Danish government is investing $ 45.35 billion from 2023 to 2026 to expand and strengthen the Danish electricity transmission grid, which is crucial for integrating more renewable energy from wind and solar.
• Denmark aims to quadruple its power generation from wind and solar by 2030, requiring a massive grid expansion to handle the new capacity.
• The government has set a target of 13 GW of offshore wind capacity by 2030, up from 2.3 GW in 2023, as part of its goal to supply 100% of its power consumption with renewables by 2027.

Subsidies and Tax Incentives

• Historically, solar PV installations in Denmark have relied on various financial support mechanisms, including subsidies and tax incentives.
• While these have helped spur initial growth, current policies focus on allowing the market to operate on commercial terms without new subsidies for new installations.
• The Danish Energy Agency administers several schemes to promote local acceptance of renewable energy projects, including compensation for property value loss and bonuses for neighbors of renewable energy installations.

Streamlining Administrative Processes

• The Danish government aims to remove or reduce administrative barriers that have hindered solar project development, including addressing financing challenges and ensuring that the existing legal framework supports solar initiatives effectively.
• The government is creating a single-entry point in the nature and environmental area for municipalities and companies to make it easier to obtain the necessary permits for renewable energy projects.

Compensation for Local Communities

• The government is improving compensation schemes to ensure that as electricity production quadruples, installers will contribute up to an additional $2.77 billion to a total of $4.98 billion by 2030 to a green pool.
• This pool will be used for activities in local communities and for VE-bonuses for neighbors of the renewable energy plants, potentially increasing the average bonus from around $9,954 to $15,484 per year.

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Installed Solar Farms

• Kassø Solar Park (300 MW): Located in Southern Denmark near Kassø, it is currently the largest solar park in Denmark. Owned by European Energy, construction began in 2021 and it was commissioned in July 2022.
• Vandel III Solar Park (155 MW): One of the largest solar parks in Scandinavia, located on the former Vandel airport in Jutland, owned by Infranode and BeGreen. It covers 180 hectares and produces 160,000 MWh annually.
• Bur/Gedmose Solar Park (207 MW): Located near Holstebro in West Denmark, owned by Bestseller, was the first subsidy-free solar park in the country when commissioned in October 2021. It covers 222 hectares and supplies 130,000 households.
• Lidsø Solar Park (253 hectares): European Energy is constructing this new solar park, one of the largest in Denmark, in Lolland Municipality. It will have an annual production of 262 GWh, equivalent to the electricity consumption of nearly 65,000 households.
• Google solar farms: 161 MW total across 5 sites in Morsø, Gimming, Norddjurs, Rødby Fjord and Næstved, developed by Better Energy and European Energy
• Luxcara BeGreen Solar PV Park: 415 MW, located in Zealand.

Projected Solar Farms

• Doral Denmark Solar Power Project: 360 MW, expected online by 2025
• Aabenraa Kasso Solar PV Park: 300 MW, located in South Denmark, expected online in 2024
• Hofor Solar PV Park: 180 MW, planned in Zealand, expected online in 2024
• Vandel 3 Solar PV Park: 155 MW, expected online in 2024
• 400 MW in Nissum Fjord: The Danish Energy Agency announced plans for 400 MW of PV projects in the Nissum Fjord location.

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European Energy

• Headquarters: Copenhagen, Denmark
• Website: europeanenergy.com
• Details: A leading company in the development of renewable energy projects, including solar and wind farms. European Energy is known for the Kassø Solar Park, which has a capacity of 300 MW and supplies electricity to over 75,000 households.

BeGreen

• Headquarters: Vejle, Denmark
• Website: begreen.dk
• Details: Focuses on developing and operating solar parks in Denmark. They are involved in the Vandel III Solar Park, which has a capacity of 155 MW and is one of the largest in Scandinavia.

Obton

• Headquarters: Copenhagen, Denmark
• Website: obton.com
• Details: An investment partner specializing in solar parks. Obton has invested in various solar projects and is known for its long-term investment strategies in the renewable energy sector.

Nordic Solar Energy

• Headquarters: Copenhagen, Denmark
• Website: nordicsolar.eu
• Details: Nordic Solar is a leading renewable energy company that specializes in developing and managing solar power projects across the Nordic region, aiming to deliver sustainable energy solutions with over 2.5 GW of installed capacity and a strong commitment to accelerating the transition to clean energy.

Makeen Energy

• Headquarters: Aarhus, Denmark
• Website: makeenenergy.com
• Details: Makeen Energy is a global provider of advanced energy solutions, delivering a comprehensive portfolio of technologies and services with over 100 years of combined experience, including a focus on modular energy systems and innovative biogas solutions.

Danish Renewables

• Headquarters: Lyngby, Denmark
• Website: danishrenewables.com
• Details: Danish Renewables has 16 years of experience in developing wind and solar projects and 4 years in battery systems. Currently, the company is advancing projects across Denmark, Sweden, Moldova, South Africa and Georgia.

Dan solar

• Headquarters: Ebeltoft, Denmark
• Website: dansolar.dk
• Details: DanSolar is a dynamic leader in the solar energy sector, specializing in the development and operation of large-scale photovoltaic projects, with a portfolio that includes over 200 MW of installed capacity and ongoing projects across Denmark and Europe.

Aalborg Csp

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• Headquarters: Aalborg, Denmark
• Website: aalborgcsp.com
• Details: Aalborg CSP is a pioneering company in the renewable energy sector, specializing in advanced concentrated solar power (CSP) solutions and biomass technologies, with a global project portfolio exceeding 1,000 MW and a strong focus on enhancing energy efficiency and sustainability.