Highly dependent on imported energy, the 1970s oil crises led to increased electricity costs in Denmark. As a solution towards energy independency, wind energy and other renewable energy sources gained public support and political goodwill.

The Danish wind power legacy

Despite renewables originally being more expensive than fossil fuels, continuous political commitment secured more and larger wind power projects onshore, and in 1991 Denmark established the world’s first offshore wind farm, Vindeby. Since then, the increasing scale of offshore wind and strong technological improvements from the Danish wind power industry have reduced costs throughout the whole supply chain — producing a lower Levelised Cost of Energy (LCOE) and increasing the competitiveness of offshore wind. Today, renewables are among the cheapest forms of electricity production in Denmark and many other countries around the world, and costs are expected to further decrease as scale increases.

Gigantic potential for offshore wind

Geographically located between the North Sea and the Baltic Sea, Denmark has access to abundant offshore wind resources which provide the potential for Denmark to become Europe’s green powerhouse. With the Ostend Declaration, European politicians have set the ambitious target of 120 GW offshore wind capacity by 2030 in the North Sea, with the potential to increase capacity to at least 300 GW by 2050. Denmark can deliver a substantial amount of this.

Strong grid and flexibility from electrolysers

With a security of electricity supply of 99.99 percent, the Danish energy system has proven that it is possible to integrate large amounts of intermittent renewables. In the coming years, the need for a continued build-out of the electricity grid, as well as hydrogen pipelines across Denmark and to neighbouring countries, will grow as the volumes of intermittent, decentralised electricity production increase.

Electrolysers will play a key role in securing the balance between electricity supply and demand. They provide flexibility by being able to consume large amounts of electricity from the grid when renewables are producing abundantly and electricity prices are low, and by being easily turned off or ramped down when renewable production is low and prices are high. Renewable electricity and electrolysers thereby benefit each other towards securing the value creation and competitiveness of Danish renewables and hydrogen production.

From pioneering wind to pioneering net-zero energy systems

The potential for offshore wind energy in Denmark is high. Combined with hydrogen, Denmark can secure a reliable, independent, and sustainable net-zero emissions energy system. Denmark has a history of pioneering achievements, particularly in the refinement of skills within wind energy. Presently, the nation is poised to undertake a new pioneering initiative, with a specific emphasis on hydrogen.