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Global Onshore Wind Market Report

Key Regional Markets


Onshore Wind Capacity

15.3 GW

GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)



Danish Krone

Country Credit Rating (S&P)
Renewable Energy capacity (2022)


Onshore Wind Share in Renewables (2022)


Renewable Energy Target

2030 aim for renewable energy contribution to reach 100% in electricity generation and 55% in total consumption, in tandem with reduction of GHG emissions by 70% from 1990 level

Denmark’s pioneering role in the European onshore wind sector has been a testament to its historical expertise in developing wind turbines. The country has been a trailblazer in generating a significant portion of its electricity from renewable sources, particularly wind energy, both onshore and offshore. Wind power now constitutes more than 60% of Denmark’s clean energy mix (IRENA, 2023).

Aligned with the Danish Climate Act of 2020, the government has set ambitious targets to further increase the share of renewable energy in the country’s overall electricity mix. Denmark has committed to achieving a 100% renewable energy supply by 2050, a testament to its dedication to sustainable energy practices (CCACoalition, 2020).

Wind power, with its strong presence in the nation and the availability of abundant wind resources, plays a pivotal role in achieving these ambitious targets. The Danish onshore wind industry has experienced consistent growth, propelled by supportive government policies, favourable wind conditions, and continuous technological advancements. Denmark’s journey in the onshore wind sector serves as a model for other nations, showcasing how combining expertise, policy support, and natural resources can drive the transition towards a renewable energy future.


  • Promotion of renewable electricity through a combination of market mechanisms and
    political regulation

  • Stringent steps taken to speed up the permitting process, especially for subsidy-free renewable project development

  • Robust funding initiatives amalgamated with upcoming CfD mechanism expected to boost corporate and merchant power projects


  • Policy shift towards offshore wind and solar PV with a stagnated policy framework for onshore wind is expected to hit its deployment

  • Strained public opposition and limited land availability constrained onshore wind growth

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics July 2023

In 2022, Denmark achieved a significant milestone with approximately 11.7 GW of total renewable energy installed capacity. Onshore wind led the energy mix among these renewable sources, contributing 41% of the total capacity (IRENA, 2023). However, there has been a decline in the share of onshore wind, dropping by 5% from the previous year as officials shifted their focus towards offshore wind and solar PV technologies. While there are regulatory shifts towards other renewable sources, onshore wind remains a crucial player in Denmark’s renewable energy landscape, even as the country explores a diversified portfolio of clean energy solutions.

Installed Capacity: Status and Trend

Trend in Installed Onshore Wind Capacity

Trend in Installed Onshore Wind Capacity - Denmark

Source: Preqin Global Report 2023: Private Equity

Denmark’s onshore wind installed capacity has experienced slow growth recently, with a compound annual growth rate (CAGR) of only 3% between 2017 and 2022 (IRENA, 2023). As a result, the onshore wind capacity remained below 5GW until 2022. Several factors have contributed to this stagnation, such as policymakers reallocating resources for offshore wind development, geographical constraints, permit delays, policy shifts, and public opposition. These challenges have limited the expansion of onshore wind projects, leading to minimal capacity additions, often below 100MW, in 2022 (IRENA, 2023). Despite these constraints, there were still some modest additions, contrasting with the absence of capacity additions in offshore wind projects during the same period.

Demand Drivers

The importance of renewable energy has increased due to rising energy prices caused by geopolitical developments and ambitious national clean energy targets. In Q1 2022, Denmark announced a new reform proposal called “Denmark Can do More II”. This proposal outlines measures to accelerate the transition to a more sustainable energy system and decrease reliance on Russian gas. The measures include speeding up the permitting process, especially for subsidy-free renewable project development, with the goal of quadrupling the total volume of electricity generated by solar energy and onshore wind by 2030 (European Commission, 2023).

In Denmark, authorities are progressively implementing robust funding plans to encourage renewable usage. In June 2022, the government and Danish Parliament reached agreements covering a green investment fund, an enhanced unified carbon tax, and a renewable energy package, providing the necessary momentum to achieve the 2030 capacity targets. The fund covers EUR7.2 billion in investments between 2024 and 2040, prioritising larger and longer-term investments in climate, clean energy, and the environment (Ministry of Foreign Affairs Denmark). Additionally, in May 2021, the European Commission approved a support package of EUR400 million proposed by Danish authorities to support sustainable energy production from onshore and offshore wind, tidal power, hydroelectric power, and solar PV (European Commission, 2021).

Market Opportunity

In Denmark, the repowering of old wind projects presents a significant market potential, given the country’s status as the home of the world’s oldest fleet of wind turbines. Between 1978 and 2020, Denmark experienced a total loss of approximately 7.85TWh of wind energy production due to faults, failures, and age-related asset performance degradation (Renewables Now, 2022). Repowering these ageing assets has emerged as a cost-effective alternative to life extension and holds substantial promise for expanding the installed capacity base.

In 2022, noteworthy repowering initiatives included a 10-year power purchase agreement (PPA) between dairy cooperative Arla and renewables developer Eurowind Energy for a 39.6MW unsubsidised wind farm (Renewables Now, 2022). This repowered wind farm is expected to generate 137GWh annually. Repowering old projects has become crucial for Denmark to achieve its clean energy capacity targets, especially in the face of challenges such as limited land availability and local opposition to new onshore wind projects.

Despite these challenges, Denmark has seen a rise in subsidy-free renewable projects facilitated through the PPA route, driven by technological advancements and the increasing cost competitiveness of wind projects. Notably, the country witnessed its first utility-scale subsidy-free wind park, the 17MW Hirtshals Havnefond project, securing a 3-year PPA with Energi Danmark (AA Energy, 2019).

Hybrid projects integrating solar and wind energy have gained momentum in Denmark, primarily due to their efficient land use. Danish renewable company GreenGo has announced plans to partner with Ringkøbing-Skjern Municipality to develop a green Energy Park comprising 4GW of hybrid solar and wind energy, with an estimated investment of around DKK60 billion (€8 billion), projected to be operational before 2030 (Power Technology, 2023). Additionally, Eurowind Energy revealed plans to construct wind-solar hybrid capacity at five onshore energy centres in Denmark, totalling 2.5GW, with battery storage to provide grid services (WindFair, 2022).

Considering the rapid growth of hybrid projects, the seasonal variability in renewable energy production, and the grid’s limited capacity to handle excessive wind power, energy storage solutions, particularly battery-based systems, hold significant potential in the Danish market. Developers are increasingly integrating battery storage into new power plants to address these challenges. Moreover, innovative and eco-friendly storage technologies like Molten Salt Storage (MOSS), as explored by companies like Hyme Energy, can potentially revolutionize energy storage, offering sustainable and cost-effective solutions for the wind energy industry (State of Green, 2022). These developments reflect Denmark’s proactive approach to tackling challenges and leveraging emerging technologies to advance its renewable energy sector.


Source: BNEF Global Wind Market Outlook

Denmark has a strong local manufacturing industry for turbines and employs skilled workers who support the wind industry for the long term. This helps the government set ambitious targets for onshore wind capacity deployment, which is crucial as the country is transitioning towards a greener future, and power demand is expected to double by 2030.

According to estimates by BloombergNEF (BNEF), Denmark’s wind energy industry is expected to experience a slight increase in capacity until 2026 before levelling off at an average of 200MW per year from 2027. However, barriers to growth exist due to Denmark’s ineffective and inefficient permitting and licensing rules, causing delays in wind projects. Additionally, public opposition to onshore wind due to noise pollution and its associated health impacts presents a major regulatory roadblock. One solution could be to involve municipalities with revenues in the approval process.

Another factor contributing to the industry’s moderate growth is the limited availability of land, which can be addressed by implementing hybrid projects that combine solar and wind energy. This approach requires less land and generates more energy capacity.

Denmark’s rapid decommissioning of ageing turbines creates an urgent need for repowering. However, replacing older machines with new and efficient models is not feasible without adequate funding. The good news is that onshore wind turbine prices have decreased in recent years, making project development viable even without state subsidies. Additionally, better grid management technology and more robust maintenance regimes can help avoid significant losses.

Finally, Denmark’s onshore wind sector can continue to grow with the presence of a flexible power grid and an effective network of turbine OEMs.