Denmark Geothermal Energy Market Size (2024 - 2029)

The Denmark Geothermal Energy Market is poised for growth, driven by its potential as an efficient and sustainable energy source, despite challenges from competing renewable energy sectors like solar and wind. The market's expansion is supported by advancements in technology that enhance economic feasibility, aligning with Denmark's goal of achieving carbon neutrality by 2050. This alignment not only presents opportunities for large-scale geothermal energy utilization but also positions it as a potential new export avenue for Denmark.

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Market Size of Denmark Geothermal Energy Industry

Denmark Geothermal Energy Market - Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 1.00 %
Market Concentration High

Major Players

Denmark Geothermal Energy Market - Market Major Players

*Disclaimer: Major Players sorted in no particular order

Denmark Geothermal Energy Market Analysis

The Denmark Geothermal Energy Market is expected to register a CAGR of more than 1% during the forecast period.

COVID-19 negatively impacted the market in 2020. Presently the market has now reached pre-pandemic levels.

  • Over the medium term, the geothermal power market is mainly driven by factors including an efficient and sustainable energy source and the growing adoption of renewable energy. The limited burning of fuels and minimal emission of carbon dioxide and other greenhouse gases favor the adoption of geothermal energy.
  • On the other hand, the lucrative market for alternative clean energy sources such as solar and wind is likely to hinder the market growth.
  • Nevertheless, for Denmark's aim to achieve a carbon-neutral country by 2050, geothermal heating is considered. It is likely to bring great opportunities in utilizing geothermal on a large scale, not least as a new Danish export opportunity. In addition, the latest technology makes it economically feasible to initiate geothermal projects, which in turn, is likely to provide an opportunity in the market in the future.

Denmark Geothermal Energy Industry Segmentation

In geothermal energy, heat is produced deep within the Earth's core. Geothermal energy is an unpolluted, renewable resource that can be used as a heat source and electricity. 

The Geothermal Energy Market sizing and forecasts have been done based on installed capacity (MW).

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Denmark Geothermal Energy Market Size Summary

The Denmark Geothermal Energy Market is poised for growth, driven by the country's commitment to sustainable energy sources and its goal of achieving carbon neutrality by 2050. Geothermal energy, with its low emissions and minimal environmental impact, is gaining traction as a viable alternative to fossil fuels. Despite the competition from other renewable energy sources like wind and solar, which are more established and receive significant government support, geothermal energy presents unique opportunities, particularly in district heating. Denmark's extensive geothermal aquifers and district heating networks, especially in areas like Greater Copenhagen, offer substantial potential for expanding geothermal energy use. The adoption of advanced technologies has made geothermal projects more economically feasible, paving the way for large-scale implementation and potential export opportunities.

The market landscape is characterized by a few key players, including A.P. Moller Holding A/S and Danfoss A/S, who are actively involved in developing geothermal projects. Recent agreements, such as the one between Innargi and the City of Aarhus, highlight the ongoing efforts to enhance geothermal infrastructure, with plans for significant developments like the largest geothermal heating plant in the EU. However, the dominance of wind energy in Denmark's renewable energy mix poses a challenge to the growth of geothermal energy. Wind energy's cost-effectiveness and the country's favorable wind conditions have led to substantial investments and capacity expansions, which may continue to overshadow the geothermal sector's growth prospects during the forecast period.

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Denmark Geothermal Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Installed Capacity and Forecast in MW, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

Denmark Geothermal Energy Market Size FAQs

The Denmark Geothermal Energy Market is projected to register a CAGR of greater than 1% during the forecast period (2024-2029)

A.P. Møller Holding A/S , Geothermal Operations Company , Gate 21 and Danfoss A/S are the major companies operating in the Denmark Geothermal Energy Market.

Denmark Geothermal Energy Report Snapshots

Denmark Geothermal Energy Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)