{"id":142374,"date":"2026-06-11T10:18:17","date_gmt":"2026-06-11T10:18:17","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=142374"},"modified":"2026-06-11T11:48:12","modified_gmt":"2026-06-11T11:48:12","slug":"denmark-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/denmark-renewable-energy\/","title":{"rendered":"Denmark: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-142374","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-denmark"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Accura Advokatpartnerselskab<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/04\/Accura_logo_grey.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Accura Advokatpartnerselskab<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/04\/Accura_logo_grey.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in Denmark<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Denmark was one of the first-moving countries within renewable energy. In 1991, the world&#8217;s first offshore windfarm, Vindeby, was installed. In the 1990s and 2000s, Denmark became an early leader in offshore wind, with projects such as Horns Rev and Nysted helping prove the commercial viability of large offshore windfarms. Over time, renewables moved from being a niche part of the system to a central part of national energy planning.<\/p>\n<p>Today, Denmark\u2019s renewable energy market is mature, highly policy-driven, and strongly centred on power (wind and solar), biogas, carbon (CCUS) and green hydrogen. The market is supported by strong interconnection with neighbouring countries, which helps balance variable renewable output. Denmark operates offshore wind farms with a total installed capacity of 2.6 GW. This capacity is planned to increase significantly, reaching 35\u202fGW in the North Sea alone by 2050, with 9\u202fGW scheduled to be tendered by 2030. Denmark already has several planned offshore wind projects, including Nords\u00f8en I, Energi\u00f8 Bornholm, and Kriegers Flak II.<\/p>\n<p>According to The Danish Energy Agency, the overall energy production in 2024 was 431.274 TJ. Approximately 51.5% of total production came from renewable energy sources. Of this, biomass accounted for 35%, onshore and offshore wind power for 33%, biogas for 14%, ambient energy for 10%, and solar power for 7.5%, while geothermal energy and hydropower together accounted for 0.5%.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Denmark has committed itself to reducing its emissions by 50% in 2030 compared to 2005 levels under the EU Effort Sharing Regulation. Moreover, Denmark has preserved national targets in its climate framework that are legally binding. Under the Danish Climate Act, Denmark is required to reduce its GHG emissions by 70% by 2030 compared to 1990 levels and to achieve a climate neutral society no later than 2050.<\/p>\n<p>The Danish Climate Act also established an interim target for 2025, requiring a reduction of Denmark\u2019s GHG emissions of 50-54% by 2025 compared to 1990 levels. The purpose of this was to function as an indicative interim milestone, as reflected in the fact that the target was formulated as an interval rather than a fixed-point target. Achievement of the target was measured as the average emissions over 2024\u20132026, to reduce the impact of year-to-year fluctuations.<\/p>\n<p>The Act establishes independent oversight of Denmark\u2019s climate efforts. The Minister for Climate, Energy and Utilities is advised by the Danish Council on Climate Change, which issues annual climate policy recommendations and assesses whether the Government is on track to meet the statutory climate targets.<\/p>\n<p>The Minister must set a national climate target with a ten-year perspective at least every five years. In December 2025, the Government announced that the next target would be an 82% reduction in GHG emissions by 2035 compared with 1990. In February 2026, it proposed an amendment to the Climate Act to include this target, bring forward climate neutrality to 2045, and add a 2050 target of a 110% reduction. Following the election on 24 March 2026, the amendment has not progressed beyond consultation while a new Government is pending.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Renewable energy is defined in section 2(2) of the Danish Act on Promotion of Renewable Energy (the &#8220;RE Act&#8221;) as &#8220;energy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, ambient energy, tide, wave and other ocean energy, and energy in the form of hydropower, biomass, landfill gas, sewage treatment plant gas and biogas&#8221;. This definition is an implementation of article 2(1) of the Renewable Energy Directive (RED II).<\/p>\n<p>The RE Act authorises the Minister for Climate, Energy and Utilities to adopt more detailed regulations specifying which energy types may be classified as renewable energy. The legal understanding of renewable energy is closely harmonised with EU law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, the renewable energy sector is shaped by a mix of public authorities and private market participants. The Danish Parliament sets the legislative framework for climate and energy policy, while the Ministry of Climate, Energy and Utilities is responsible for national energy strategy and implementation. The Danish Energy Agency plays a key role in administering renewable energy policy and in planning and tendering, especially for offshore wind. The Danish Utility Regulator oversees parts of the electricity and gas markets, including tariffs and fair grid access.<\/p>\n<p>Energinet, Denmark\u2019s state-owned transmission system operator, is central to the system and is responsible for electricity and gas transmission, system balance, grid integration of renewable energy, and interconnection with neighbouring markets. Evida operates the national gas distribution network. Municipalities are also important, particularly for onshore wind, solar, and district heating projects, where local planning decisions can be decisive. EU law and policy also continue to influence the Danish renewable energy market.<\/p>\n<p>The private sector has played a central role in Denmark\u2019s green transition. \u00d8rsted is internationally recognised for offshore wind, while Vestas has been fundamental to both Denmark\u2019s wind sector and its global renewable energy profile. Copenhagen Infrastructure Partners is a major investor in offshore wind, power-to-x, biogas and other clean energy infrastructure, with BioCirc being another big player within the biogas market. Topsoe is also a key industrial player in hydrogen and low-carbon fuels. In addition, major corporate energy users such as A.P. Moller-Maersk are helping drive the transition by creating demand for green electricity, hydrogen, and e-fuels.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, businesses use a mix of contractual and asset-based solutions to access renewable electricity. The most common approach is still to buy green power from a licensed supplier, typically backed by guarantees of origin. Larger companies often use corporate power purchase agreements to secure longer-term price certainty, support new renewable generation, and advance internal decarbonisation targets. These can be structured as physical or virtual arrangements linked to specific wind or solar projects. More recently, the market has also developed PPA solutions for small and midsize businesses.<\/p>\n<p>Demand from data centres is also driving more direct and tailored renewable supply arrangements. Because data centres are large, price-sensitive users, standard retail supply may not meet their commercial or sustainability needs, particularly where grid capacity is constrained. This has increased interest in direct lines and corporate PPAs with renewable energy developers.<\/p>\n<p>In the commercial real estate sector, building owners and developers are also increasingly installing rooftop solar and using the power on site, reducing purchased electricity consumption and making productive use of existing assets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)? What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Over the last 12 months, Denmark\u2019s renewable energy market has shifted from strong expansion expectations to a more cautious and commercially driven approach. Rising capital, operating, and financing costs, combined with lower power prices and a weaker political focus on the green transition, have increased market uncertainty. As a result, businesses and developers are placing greater emphasis on project economics, revenue certainty, offtake opportunities, and grid access.<\/p>\n<p>Grid constraints have become a major issue. Capacity has not kept pace with new renewable and electricity-intensive projects, making grid access a key factor in project planning, risk allocation, and investment decisions. In early 2026, Energinet paused all grid connections for three months because of insufficient capacity and introduced a new prioritisation model that gives preference to the most advanced projects.<\/p>\n<p>The commercial environment for large renewable projects has also become more difficult. In 2024, the Danish Energy Agency confirmed that no bids were received for the three offshore wind farms offered in the North Sea. Market dialogue suggested this reflected rising costs, expected low electricity prices, limited offtake opportunities, and wider uncertainty in the electricity and hydrogen markets. Although ESG considerations remain relevant, including under the CSRD, the most visible change in the Danish market has been the growing importance of cost pressure, political uncertainty, and grid constraints.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, discussions around reducing carbon emissions are highly visible and relatively mature, particularly among larger, listed, and export-oriented companies. Decarbonisation is no longer treated as a narrow CSR topic, but rather as an integral part of business strategies, competitiveness, reporting, and energy cost management. Denmark\u2019s climate framework remains anchored in legally binding emissions reduction targets.<\/p>\n<p>Political and regulatory support is also strong, including in the area of energy efficiency. Carbon emission reductions are driven both by EU level regulation and by strong domestic price signals. Companies covered by the EU ETS already face a direct cost of emissions through the carbon-allowance system, creating a clear financial incentive to reduce emissions. Denmark has further reinforced this incentive through its national industrial CO2 tax regime, as well as broader political agreements, including the Green Tripartite Agreement, which underpin long-term commitments to decarbonisation.<\/p>\n<p>Further, Denmark supports the green transition through targeted grant schemes. The Danish Business Pool supports decarbonisation and energy efficiency. With total funding of DKK 3.5 billion and a timeframe extending until 2029, the scheme is open to both small and large private companies across industries. Financial support is available for a wide range of projects aimed at improving energy efficiency or reducing CO2 emissions related to energy use. Denmark also has several additional industrial support and subsidy schemes in place to support decarbonisation and green transition.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up, interconnect or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, rights to explore, establish, interconnect, and transfer energy projects are not governed by a single regime, but depend on the technology and whether the project is land-based, offshore, or linked to the subsurface. Most land-based projects, including solar, onshore wind, battery storage, biomass, biomethane, power-to-X, and many CHP plants, require the developer to secure site control and obtain the relevant planning, environmental, construction, and sector-specific approvals. Offshore wind is different because it generally requires a state concession or similar public award to use the seabed and marine area. Geothermal and carbon capture and storage projects are also subject to a state-controlled subsurface licensing regime.<\/p>\n<p>Interconnection is a separate issue for most technologies and is becoming increasingly important due to grid constraints, particularly for solar, wind, BESS, and power-to-X projects. In the biogas sector, higher gas transport tariffs have also created pressure.<\/p>\n<p>Transfer rules also vary by project type. Land-based projects are commonly transferred through share sales and assignment of project documents, subject to permit and contract terms, while offshore concessions and subsurface licences are more likely to require prior authority approval. Overall, the Danish framework is relatively straightforward for ordinary land-based projects, but more regulated for offshore and subsurface technologies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, the government is directly involved in the renewables industry, particularly through the overall regulatory framework and through public tender processes for certain projects, especially in offshore wind. However, the Danish model is not generally based on the state acting as a direct project developer or long-term co-owner of individual renewable energy projects. A recent example is that a previous offshore tender model contemplated an element of state ownership, but the tender attracted no bids. Following that outcome, the approach was changed, reflecting both market conditions and the need to make the tender framework more commercially workable for developers.<\/p>\n<p>One main exception is in CCS projects, where the Danish state retains a 20% ownership in all licences for the exploration and geological storage of CO2 in the subsoil through Nords\u00f8fonden. This means that, in the CCS context, the state is not only acting as regulator and licensing authority but may also hold a direct participating interest in the licensed storage project itself through Nords\u00f8fonden.<\/p>\n<p>In other renewable energy projects, state ownership is more visible in the utilities and infrastructure side of the sector than in renewable generation projects themselves. In particular, the state has ownership interests in key energy infrastructure entities such as Energinet and Evida, which play important roles in the transmission of power and gas systems respectively as well as in the future, the transmission of hydrogen.<\/p>\n<p>The Danish state remains directly involved in the sector through its majority ownership (50.1%) of \u00d8rsted. \u00d8rsted is a multinational power company, with over 17 GW of renewable capacity, making them the world&#8217;s leading developer of offshore wind energy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Denmark is a member of the European Union, and the Danish renewable energy sector is therefore shaped to a significant extent by EU legislation. This is particularly the case for rules relating to renewable energy, electricity market, state aid, and environmental permitting.<\/p>\n<p>At national level, the key legislative framework includes the Renewable Energy Act, the Electricity Supply Act, the Gas Supply Act and, depending on the technology, the Heat Supply Act, the Planning Act, the Environmental Assessment Act, and the Environmental Protection Act. Certain technologies are also subject to sector-specific regimes, e.g. geothermal and CCS projects being regulated by the Subsoil Act framework.<\/p>\n<p>Anticipated legislative developments in Denmark are likely to continue to reflect both domestic political priorities and implementation of EU energy and climate initiatives. The main areas of expected reform include faster and more streamlined permitting, grid expansion, adjustments to support and tender models, and development of clearer legal frameworks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, government support for renewable energy is generally provided through targeted subsidy schemes and public tenders rather than through broad renewable-specific tax deductions. As a member of the EU, Denmark\u2019s framework is also shaped by EU state aid and energy law. Support has historically been strongest for large-scale and offshore renewable projects, where the state may offer tender-based price support, including CfD-style or premium-style mechanisms depending on the scheme. Denmark has also used support schemes for areas such as CCS, biogas and biomethane, and public support may also be available through innovation and development programmes for newer technologies.<\/p>\n<p>There are no direct special tax deductions promoting renewable energy. The Danish government has implemented a range of taxes and emissions trading schemes targeting CO2 emissions, which function as indirect incentives by discouraging fossil-fuel-based energy production. In particular, the regulatory framework consists of a CO2 tax (CO2-afgift) and CO2 emissions allowance (CO2-kvoter) under the EU Emissions Trading Scheme (EU ETS), and an emissions tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices? Are there plans in your jurisdiction to keep open coal plants originally scheduled for retirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Gas can still affect electricity prices even though renewables supply a large share of generation. This is because Denmark is part of the integrated Nordic and European power market, where wholesale electricity prices are generally set by marginal pricing. As a result, when gas-fired generation is needed in Denmark or connected markets, gas prices can influence the market price received by all generators, including renewable generators.<\/p>\n<p>There are no clear plans in Denmark to fully de-link renewable electricity prices from gas prices by replacing the wholesale market model. However, policy at both EU and Danish level increasingly supports tools that reduce exposure to gas-driven volatility, such as long-term support schemes, CfD-type arrangements in relevant tenders, and corporate PPAs. On coal, Denmark aims at phasing out by 2030, and with only one remaining coal powered plant, Denmark has no current plans to keep open coal powered plants.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, the main barriers are usually permitting and grid-related rather than outright legal hostility to renewables. Projects can face lengthy approval processes because of planning rules, environmental assessment requirements, nature protection constraints, and local opposition, particularly for onshore wind and larger infrastructure projects.<\/p>\n<p>Grid access is also a major issue. Although transmission expansion is planned, delays across 73% of Energinet\u2019s construction projects, together with inflation and higher prices for components and contractor services, have slowed progress and made the projects about 13% more expensive. Energinet also introduced a temporary three-month pause on new grid-connection requests in order to gain a clearer overview of capacity pressures and ensure a more coordinated and responsible approach to further allocation. Connection delays, limited network capacity, reinforcement costs, and queue management can slow both new generation projects and businesses seeking renewable electricity, although Energinet has recently introduced measures to reduce waiting times.<\/p>\n<p>For corporate consumers, another practical barrier is that access to renewable power often depends on the availability of bankable PPAs, which can be affected by price volatility, balancing risk, tenor, and counterparty creditworthiness. There are also commercial and regulatory barriers. Changes in support design, tender conditions, and wider market economics can affect project bankability, as recent offshore wind experience has shown. Denmark is generally open to investment, but some transactions may still be affected by FDI screening, merger control, and scrutiny where critical infrastructure is involved. Acquisitions can also be constrained by permit structures, grid rights, and change-of-control issues. Finally, appeals against permits, environmental objections, tender disputes, and local resistance can all materially delay project delivery and access to renewable energy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In a new-build renewable energy project in Denmark, the core contract suite would usually include: site control documents such as land purchase agreements, leases, easements, and access rights; grid connection and network agreements; main construction and equipment contracts, often including an EPC contract or a package of supply and balance-of-plant contracts for turbines, panels, foundations, cables, substations, and civil works; and operations and maintenance agreements for the operational phase. You would also typically expect to see an offtake arrangement, such as a corporate or utility PPA, together with balancing or route-to-market agreements where the project sells into the market.<\/p>\n<p>In addition, most projects will have financing and project ownership documents, including facility agreements, security documents, direct agreements with key counterparties, shareholder or joint venture arrangements, and sometimes hedging documents. Where public support applies, there may also be tender, subsidy, or CfD-style support documentation. Depending on the technology and structure, there may also be important interface, logistics, installation, and warranty arrangements, particularly in offshore projects where contractual risk allocation is more fragmented and complex.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) in your jurisdiction of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735 or the \u201cforeign entity of concern\u201d regulations in the U.S.?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, there are generally no broad restrictions on the import or export of renewable electricity or renewable energy equipment. As part of the EU internal energy market, cross-border electricity trade is mainly governed by EU market rules, interconnector capacity, congestion management, and general sanctions or export-control rules, rather than renewable-specific barriers. Denmark also does not generally impose local content or domestic supply obligations on renewable projects, and broad domestic content requirements would be difficult to reconcile with EU internal market and procurement rules. In practice, the main constraints are more likely to be grid availability, permitting, technical standards, and supply chain issues. A recent EU regulation (Regulation (EU) 2023\/956) on the carbon border adjustment mechanism (CBAM) will require importers of covered goods (currently cement, iron, steel, aluminium, fertilizers, electricity and hydrogen) to report the embedded direct and certain indirect emissions for each quarter during 2023\u20132025 and, from 2026, to purchase certificates corresponding to those embedded emissions used in renewable equipment. The measure aims to prevent carbon leakage and align import carbon costs with the EU ETS, encouraging decarbonization of third-country production.<\/p>\n<p>In the biogas sector, certain sustainability requirements must be met for feedstock to be used in production. Feedstocks that do not satisfy applicable renewable energy, greenhouse gas saving, traceability, land-use, or waste and residue criteria may not count toward renewable targets or qualify for support schemes, which can materially affect project economics.<\/p>\n<p>NZIA is likely to have a more direct impact in Denmark than the US \u201cforeign entity of concern\u201d rules. In Denmark, its expected effects include faster permitting for certain net-zero manufacturing projects, greater focus on European supply chain resilience, and possible use of resilience, sustainability, or non-price criteria in auctions and procurement. This could indirectly favour suppliers with stronger EU manufacturing footprints, especially in sectors such as wind and electrolysers, even though it is not a classic local content regime. By contrast, the US FEOC rules are not directly aimed at Danish domestic renewable projects but may affect Danish companies exporting to the US or participating in US-linked supply chains. Separately, the EU Foreign Subsidies Regulation (Regulation (EU) 2022\/2560) introduces notification duties for large concentrations and certain public procurements and empowers the Commission to investigate distortive third country subsidies, which can affect timing and due diligence for subsidized non EU investors or suppliers in Danish renewables tenders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has deployment of renewables been impacted in the last year by geopolitical uncertainties and other non-country specific factors: For example, the conflict in the Middle East, financing costs, changing tariff regimes, supply chain or taxes or subsidies (e.g. the impact of the One, Big, Beautiful Bill on the tax credits and other incentives created by the Inflation Reduction Act in the U.S.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Renewable deployment over the last year has been affected more by cost, financing, and supply chain pressure than by any direct domestic policy reversal. The sharp rise in interest rates and overall financing costs has materially weakened project economics, especially for offshore wind and other capital-intensive projects. At the same time, developers have faced continued cost inflation in turbines, foundations, cables, vessels, and balance-of-plant works, together with tighter contractor pricing and greater caution from lenders and investors.<\/p>\n<p>Since Russia&#8217;s invasion of Ukraine, Europe has been reminded how vulnerable it is when heavily dependent on a dominant gas supplier. Although the EU has rapidly shifted its gas supply and reduced direct reliance on Russia, the underlying structural vulnerability remains. Tensions in the Middle East, including disruption to shipping routes and wider logistics risk, have contributed to longer lead times, higher freight costs, insurance costs, and supply chain uncertainty. The main effect in Denmark has been slower project deployment, greater pressure on tender design, and a tougher environment for reaching financial close.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Denmark is currently undertaking a number of large-scale energy infrastructure projects aimed at supporting the green transition, strengthening energy security, and facilitating the integration of renewable energy into both the national and European energy systems. The most significant projects currently underway are centred on offshore wind, Power-to-X, CCS and the infrastructure needed to support them.<\/p>\n<p>The Thor Offshore Wind Farm is one of the most important near-term offshore wind developments. With a capacity of 1,000 MW, it is expected to become Denmark\u2019s largest offshore wind farm once operational in 2027. The Bornholm Energy Island concept and the related Baltic Sea offshore wind buildout also remain important parts of Denmark\u2019s longer-term strategy, although the project\u2019s scope, structure, and timeline have evolved and there are still no clear indications of the next steps. More broadly, the current offshore wind tender pipeline remains a major feature of the Danish market, with three ongoing tenders covering a combined 2.8 GW of capacity, of which 1.8 GW is to be installed by 2032 and 1 GW by 2034.<\/p>\n<p>Alongside offshore wind, Denmark is placing significant emphasis on Power-to-X projects. Two Danish companies, Morgen Energy and Hy2gen Nordic, have recently been granted financial support for their hydrogen projects in the European Hydrogen Bank auction. Both projects are located near the planned hydrogen backbone, which is intended to create the infrastructure needed to transport hydrogen between production sites, industrial users, and potentially export points.<\/p>\n<p>In addition, the Danish cement manufacturer Aalborg Portland has been selected the sole recipient of support from Denmark&#8217;s DKK 28.7 billion CCS fund. The support will cover capture, transport and storage of 1.25 million tonnes of CO2 per year, which is an important step towards the work of producing CO2 neutral cement.<\/p>\n<p>Continued investment in grid reinforcement, interconnectors, and port infrastructure, particularly in hubs such as Esbjerg, also remains essential to integrating new renewable capacity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the business models in the renewable energy sector in your jurisdiction adapting to the increasingly significant pace of deployment of BESS? What percentage of deals are standalone, co-located or hybrid? How is the implementation of these business models impacting financing structures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Business models are increasingly adapting to BESS deployment primarily by integrating storage into existing generation assets under shared grid connections. This allows that excess electricity can be stored during periods of low or negative prices and dispatched when prices are higher, improving flexibility, optimising dispatch, and strengthen project economics.<\/p>\n<p>In Denmark, standalone utility\u2011scale solar projects are becoming harder to justify on a merchant basis. High solar penetration has led to price cannibalisation and more negative daytime prices. In response, co\u2011located and hybrid solar\u2011plus\u2011storage projects are increasingly seen as necessary for economic viability and financing. BESS helps reduce price risk, stabilise revenues, improve capture prices and unlock additional value through ancillary services and flexibility markets.<\/p>\n<p>This shift is reflected in current development pipelines. New utility\u2011scale solar projects are structured as co\u2011located or hybrid assets or designed for later retrofitting of BESS. Storage has become integral to project design and financing, and many developers are seeking early deployment before increasing market competition reduces returns.<\/p>\n<p>Although Denmark\u2011specific data is limited, market practice indicates that co\u2011located and hybrid configurations represent most new solar\u2011linked projects. Standalone BESS remains less common, reflecting more complex business cases, greater grid\u2011connection challenges, and weaker bankability.<\/p>\n<p>The shift is also affecting financing structures. Standalone BESS generally require some form of contracted or de\u2011risked revenue to support debt financing, such as tolling or leasing arrangements, or downside\u2011protection mechanisms. By contrast, co\u2011located and hybrid projects are generally more bankable due to shared grid connections, stronger underlying cash flows and integrated project-finance structures. Hybrid and portfolio\u2011based offtake structures are also emerging, combining renewable generation with balancing and flexibility elements, and reshaping PPA design and risk allocation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required in your jurisdiction to facilitate confidence in new development and financing in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, confidence in new development and financing within emerging energy sectors, such as offshore wind and hydrogen, is supported by a combination of long\u2011term, state\u2011backed revenue assurance mechanisms and a calibrated allocation of risk between the state and private developers. Recent developments in the offshore wind tender regime &#8211; most notably the introduction and refinement of a two\u2011sided, capability\u2011based CfD, together with the political recalibration of tender conditions &#8211; illustrate the legal and regulatory measures required to render capital\u2011intensive green energy projects financeable and bankable. Subsequent dialogue with market participants has demonstrated that increased flexibility, the assumption by the state of a greater share of price volatility risk, and the availability of state aid are necessary to attract bids and ensure project realisation.<\/p>\n<p>In the context of the Danish Hydrogen Backbone, confidence in new development and financing is similarly facilitated through a legal and regulatory framework that mirrors the underlying principles of offshore wind support mechanisms, albeit implemented through different instruments. Rather than CfDs, the state relies on public ownership, regulated tariffs, investment decisions conditional on demonstrated market commitments, and phased project development to mitigate early\u2011stage risks. Taken together, these measures provide the predictability and risk\u2011sharing necessary to support large\u2011scale private investment in hydrogen production and export infrastructure, notwithstanding the sector\u2019s current lack of commercial maturity.<\/p>\n<p>A key remaining challenge for developers and financiers in newer areas like green hydrogen is securing offtake, primarily due to the significant cost gap between fossil-based incumbents and their green alternatives. Currently, green hydrogen offtake agreements are only commercially viable with state support. One key support scheme is the German government&#8217;s contribution of EUR 1.3 billion in support for Danish hydrogen projects connected to the planned Danish-Germany hydrogen pipeline under the European Hydrogen Bank&#8217;s Auction-as-a-Service mechanism. This scheme also demonstrates the importance of cross-border cooperation between hydrogen-producing countries (e.g. Denmark) and hydrogen-consuming countries (e.g. Germany), both in the establishment of cross-border infrastructure and the creation or stimulation of the hydrogen offtake market.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Denmark, energy projects are primarily financed on a commercial basis through private capital, including energy companies, pension funds, investment funds, as well as bank loans. Public support is applied selectively where market conditions alone cannot absorb the financial risk or where broader socio-economic considerations justify state involvement.<\/p>\n<p>The state supports energy projects through a combination of targeted state aid schemes, political agreements, guarantees, and public\u2013private partnerships. This framework is designed to promote the green transition, particularly the deployment of offshore wind and other renewable energy technologies.<\/p>\n<p>Offtake agreements play a central role in project financing by securing predictable revenue streams, enabling developers to obtain bank financing, and offering buyers long-term price stability. By locking in prices over an extended period, offtake agreements (such as PPAs) reduce revenue uncertainty and allow financiers to assess and manage investment risk with greater certainty.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the rising demand for data centres impacting the grid and electricity prices for consumers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Danish electricity grid is approaching full utilisation, and limited grid capacity is a significant challenge. This is important given growing demand for renewable electricity to support the electrification of transport, industry, and district heating.<\/p>\n<p>Over the past two years, many large scale data centres and BESS projects have applied for grid connection. Collectively, these projects represent potential demand of approximately 60 GW, or about eight times Denmark\u2019s current peak electricity demand. Data centres alone account for roughly 12 GW.<\/p>\n<p>In response, Energinet is expanding the grid at an unprecedented scale. However, the sharp rise in requested capacity cannot be addressed solely through new infrastructure. Energinet has therefore introduced a temporary three\u2011month pause on new grid connections to assess the situation and support responsible, coordinated action.<\/p>\n<p>Energinet has also introduced a new prioritisation model for transmission-grid connections to allocate scarce capacity more transparent, efficient and system\u2011oriented. Applicants must now meet minimum project-maturity requirements, including land control and a credible project timeline before a connection request is processed. Energinet has also implemented prioritisation criteria for projects that make more efficient use of the existing grid and contribute positively to overall system optimisation. The new prioritisation framework applies to new requests and projects awaiting screening, while more advanced cases are generally unaffected.<\/p>\n<p>These developments show that the rapid growth in demand from data centres and other electricity intensive users is not only placing significant pressure on the electricity system and requires active management of grid access. Grid congestion and capacity constraints may, in turn, increase system costs and electricity prices for consumers. Some estimates suggest that a 20% increase in electricity consumption from data centres could lead to average electricity prices of approximately DKK 9.7\/MWh by 2035.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5581<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/142374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=142374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}