The Danish PV Market: a story of remarkable growth
Denmark is a great example of a green-minded country working towards a renewable future. Traditionally, like many Northern European countries, Denmark focused on wind energy. By 2011 over 4GW of windturbine-capacity had been installed, resulting in 9.8TWh of wind-energy production in 2011, an impressive 28.2% of the country's total electricity production. In total, 41% of
Denmarks own electricity production came from renewable sources and 21.5% of gross energy consumption came from renewables.
It was a matter of time before PV would catch on and in 2012 it finally did, but on an unexpected scale.
The high energy price (26,8 Eurocents per kWh - of which over 22 cents is comprised of taxes); the extreme low costs of solar modules; and the attractive net- metering scheme issued by the government in 2010, led to an unexpected boom of solar energy. At the end of 2011, a total of 17MWp had been installed. By november 2012, this figure had been blown up to an impressive 223MWp. This meant an annual growth of over 200MW. In just one year, Denmark had exceeded its solar target of 200MWp for 2020.
The Government finally caught up with the movement and realized it would annually miss out on over 270 million worth of taxes on solar energy if it would continue its current course. In November they announced plans to adjust the net-metering policy. Solar Energy will only be able to be sold back full-price (0,29 Euro/kWh) within one hour of production. From the hour-mark on they will only receive 0,17 Euro/kWh for their solar energy.
How will this impact Denmark's solar future? Energy officials expect a steady growth and predict a 2020 cumulative capacity of 700 to 800 MWp. The Energy Association expects a slightly higher figure of 1GWp (and 3.4GWp for 2030), but these goals can hardly be called ambitious, considering the recent growth.
After the explosive growth of the Danish solar PV market in 2012, the Danish Government decided to cut back the net-metering scheme, putting a halt to the subsidized solar boom. Still, there's no need for pessimism. Looking past the kick-start inspired by the old net-metering scheme, the Danish market remains a sustainable growth market with many developments still in motion. For example, the commercial segment continues to provide many opportunities which have been overlooked because of the spotlight on the residential rooftop-market.
The remarkably high energy price will continue to push renewable energy sources and with the right business plan and the right project, it's still highly attractive to enter the Danish solar energy market, as it will inevitably continue to grow and mature.
Attend 'The Solar Future: Denmark' and learn how:
- Developments in electricity prices are going to boost the solar energy market
- The Government's policy and targets will affect the market
- PPAs and IPPs work and create a new future for large-scale project development
- Solar PV projects can be financed
- A smart marketing strategy will empower your business
- Municipalities and Governments can stimulate local solar initiatives
- International developments will influence the Danish market
- Solar energy will become an inevitable solution in a country investing in a sustainable energy future
What people said about The Solar Future Conferences:
"Something you can't miss if you want to keep being updated on PV Market future development and share with other colleagues from the sector."
Channel Manager Italy, Sunpower Corporation about The Solar Future Italy 2012
"If you want to mix with people working in the Solar sector, and at the same time enhance your own knowledge, this is the place to be!"
Partner, Cobbetts about The Solar Future UK 2012
"Valuable information from high potential speakers."
Strategic Product Manager, SMA Solar about The Solar Future NL 2012