A Sustained Portfolio of Policies Have Transformed Denmark’s Power Sector

This case study by the World Resources Institute describes the transformation of Denmark's power sector from 1990 to 2020, detailing the policy mechanisms and institutional supports that enabled a shift from coal-dominated generation to a system primarily powered by renewables.

• Between 1990 and 2020, Denmark's power generation from renewable sources increased nearly 30-fold, rising from 3% to over 80% of the generation mix. This shift was primarily driven by wind energy, which grew 24-fold to reach seven gigawatts of installed capacity by January 2022. Additionally, solar generation doubled between 2015 and 2020 to reach 4% of the power mix, and renewables now account for more than half of total heat generation. These changes resulted in a 76% reduction in carbon dioxide emissions from the power and heat sector over the 1990-2020 period.
• Denmark's transition was supported by a portfolio of policies, including high R&D investment in wind energy—making it the top EU investor in renewable energy R&D as a share of GDP from 2000 to 2020—and the use of feed-in tariffs for wind, which were introduced in the 1980s and increased in 2008 to stimulate investment.
• Institutional and regulatory frameworks streamlined renewable deployment. Since 2008, municipalities have been required to designate areas for onshore wind. For offshore wind, the Danish Energy Agency manages mapping, site identification, and provides a single point of access for permitting and approval. Furthermore, the 2008 Renewable Energy Act mandates that local citizens be offered at least a 20% share in new wind projects, with revenues invested locally.
• Denmark utilizes strong grid and market interconnection with other countries for exports, with the transmission grid owned by a public company under the Ministry for Climate and Energy. To maintain efficiency, the country implemented a scrapping program in 2001 to replace old turbines with modern models.
• Having surpassed its 2011 and 2020 renewable targets, Denmark has set more ambitious goals for 2030: 100% of electricity generation, 55% of total energy consumption, and 90% of district heating from non-fossil sources. This transition has been accompanied by dialogues with employers and unions to ensure a fair distribution of costs and benefits for fossil fuel industry workers.

APA

World Resources Institute (2024). A Sustained Portfolio of Policies Have Transformed Denmark’s Power Sector. https://www.wri.org/update/sustained-portfolio-policies-have-transformed-denmarks-power-sector

Chicago

World Resources Institute. A Sustained Portfolio of Policies Have Transformed Denmark’s Power Sector. 2024. https://www.wri.org/update/sustained-portfolio-policies-have-transformed-denmarks-power-sector.

Wikipedia

{{cite report |author=World Resources Institute |title=A Sustained Portfolio of Policies Have Transformed Denmark’s Power Sector |date=6 March 2024 |url=https://www.wri.org/update/sustained-portfolio-policies-have-transformed-denmarks-power-sector |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2024sustained, author = {{World Resources Institute}}, title = {{A Sustained Portfolio of Policies Have Transformed Denmark’s Power Sector}}, institution = {World Resources Institute}, year = {2024}, month = mar, url = {https://www.wri.org/update/sustained-portfolio-policies-have-transformed-denmarks-power-sector}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }