Denmark’s offshore wind expansion is set to reshape its clean energy system and strengthen its role in the wider European power market, according to GlobalData.

The country is developing an artificial energy island in the North Sea with an initial capacity of 3GW, alongside another island-based hub at Bornholm in the Baltic Sea.

The energy islands are designed to collect electricity from offshore wind turbines, transmit power to Denmark and neighbouring countries, and convert surplus electricity into green fuels through Power-to-X technologies.

GlobalData’s latest report, “Denmark Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035,” forecasts Denmark’s electricity generation will rise from around 33.6TWh in 2025 to approximately 43.3TWh by 2035.

Growth will be driven mainly by wind power, solar PV and biopower, with renewables expected to account for nearly 98 per cent of electricity generation by 2035.

Attaurrahman Saibasan, Power Analyst at GlobalData, said: “More than 8.7GW of offshore wind projects are currently in the permitting and announced stages, out of a total pipeline exceeding 17.6GW. These projects include large-scale developments designed to function not just as wind farms but as artificial energy islands: platforms that collect, convert, and redistribute offshore-generated power to onshore grids while linking with storage, electrolysers, and even other islands. These islands are envisioned as hubs that will help Denmark deliver more than 55 per cent of its gross final energy from renewables by 2030 and achieve full renewable electricity supply shortly thereafter.”

Renewables already represented more than 76 per cent of Denmark’s installed capacity in 2025 and are expected to reach nearly 87 per cent by 2035.

However, the growing share of intermittent wind and solar will create a greater need for system flexibility.

Gas-fired generation, biopower, battery and thermal storage, and demand-response measures are expected to help balance the grid as coal is phased out completely by 2028.

Saibasan said: “System reliability will increasingly rely on balancing tools that can handle intermittent supply, particularly from offshore wind, where weather and ocean dynamics introduce unique variability. Grid upgrades, both in transmission and distribution, are vital, especially for undersea connectors from energy islands to the mainland and enhanced local grid capacity for distributed renewables, EVs and heating loads.”

Denmark’s electricity trade with Norway, Sweden and Germany is also expected to increase.

The islands could consolidate offshore generation, support green hydrogen production and enable exports of surplus clean electricity, strengthening Denmark’s position as a regional supplier of renewable energy and hydrogen-derived products.

Saibasan concludes: “Investment in Denmark’s offshore wind is surging. From 2026 to 2030, the country is expected to deploy nearly one-third of its estimated $9.7 billion investment in offshore wind, with solar PV dominating the rest of the investment, but offshore wind projects offering greater scale and impact.

“However, building artificial energy islands comes with higher up-front costs, long lead times, and complex technical, regulatory, and environmental trade-offs. Key challenges include securing marine spatial planning, ensuring grid connection rights, building subsea cables, navigating local environmental concerns, and managing supply chain and labor constraints for massive offshore infrastructure.” -OGN/TradeArabia News Service