Feb 8, 2021

Is Denmark's energy hub island a renewables game-changer?

Dominic Ellis
5 min
Energy Digital takes a deep dive into Denmark's energy hub which will be the country's largest construction project after official approval last week
Energy Digital takes a deep dive into Denmark's energy hub which will be the country's largest construction project after official approval last week...

Every country is courting renewables but the Danes may just have put down the largest political and commercial marker, at least in Europe, after giving its wind energy hub island the go ahead last week.

The figures are ambitious. Spanning 120,000sqm, the mammoth project planned 80kms from the Jutland peninsula will be as big as 18 football pitches - it could end up three times this size - and is set to become the biggest construction project in Danish history, costing an estimated 210 billion kroner (£24 billion). 

With a capacity of up to 10GW, it's a world away from the first offshore wind farm, built on the Danish island of Lolland in 1991, which had just 5MW capacity; but it illustrates how far the industry has come in 30 years, and the energy hub may serve as the next-generation platform - both literally and figuratively.

As significant as the engineering scale is what the energy hub means for European power supplies. It will strengthen the integration of Europe’s power grids and increase renewable electricity production necessary for a climate-neutral Europe. On full implementation, it could cover the consumption of 10 million European households. Just as hub airports provide efficiencies of scale, the energy hub could redefine power connectivity and redistribution.

Rubber stamping the vast project further underlines how serious the Denmark Government is about renewables; it has imposed a cut-off date of 2050 for oil and gas extraction in the North Sea and cancelled all future licensing rounds. In the meantime, Denmark's renewables charge is really taking to water; another project on the island of Bornholm will have a capacity of 2GW. 

The caveats to megaproject construction are well versed, from budget controls to supply issues. Even if the designs sail off smoothly, it may not be ready for another 12 years - a long time in any era, but particularly in today's carbon-emission-pressurised times.

The installation of offshore windfarms comes with a number of challenges, notes a Chalmers University of Technology paper (click here), such as:

  • failure of mobilized machines to perform work and presence of unknown items on the seabed such as unexploded objects left in the sea due to earlier human activities
  • turbine sizes are increasing as the industry players seek to effectively tap the wind resources offshore, which results in larger and heavier components which require larger vessels equipped to handle heavy loads 
  • the installation activities are highly weather dependent whereas harsh weather conditions like frozen water in winter, high wind speed and sea tide are still encountered

Conceptually, the energy hub shows what can be done - and there are no shortage of renewables projects spinning into view.

According to Wind Europe, in 2017 €7.5 billion worth of investments in Europe were committed to offshore wind energy, and while it reduces the need for fossil fuel imports, it is itself a huge export opportunity, notes Siemens Gamesa. The European Commission aims to boost its offshore wind capacity to at least 60GW by the end of the decade and even 300 GW by 2050 from the current 12GW. 


The Crown Estate recently announced six proposed new offshore wind projects in the waters around England and Wales. The six Round 4 projects together represent just under 8GW of potential new offshore wind capacity with the opportunity to deliver clean electricity for more than seven million homes and create employment opportunities across the country (click here).

Interestingly Danish utility Ørsted "is at the front of the pack" with 3.7GW of under construction or generating capacity, though Denmark is considerably behind the UK and Germany on wind generating capacity based on grid-connected turbines.

Against the backdrop of Net Zero, Ofgem has indicated it would work with Government, industry, the Electricity System Operator and The Crown Estate to develop coordinated solutions and in doing so, explore options for meshed grids rather than radial links.  

Asia is a hive of activity with South Korea recently unveiling a 48.5 trillion won (US$43.2 billion) plan to build the world's largest wind power plant by 2030 as part of efforts to foster an environmentally-friendly recovery from the COVID-19 pandemic (click here). 

Japan has bold plans too. The wind farms of the ¥100 billion Akita project could generate a capacity of 140MW, enough electricity to power at least 150,000 of Japan’s 52 million homes. By 2030 Japan plans to have installed a total of 10GW.

Japan can take advantage of the technology advances and cost improvements the offshore wind industry has made since its early days in Denmark in the 1990s, notes McKinsey.   

Taiwan and the US have already commissioned the first small projects and plan for more than 10 and 25GW by 2030, respectively.

In the US, Vineyard Wind has leased a 160,000 acre area south of Martha's Vineyard, and 15 miles from the nearest shore. The offshore wind project will consist of an array of wind turbines, spaced at least eight-tenths of a mile apart, that are each capable of generating 9.5MW of power. 

It's not just countries taking the lead. By 2025, Munich wants to be the first city to cover its entire electricity needs by using renewable power – from its own systems. 

The DanTysk wind farm installation, 70kms west of the island of Sylt, features 80 3.6MW wind turbines which generate 1.3 billion kWh of electricity per year. The energy generated by DanTysk is fed into the grid in Büttel, in Schleswig-Holstein, over 800kms from Munich - but it means electricity customers in Bavaria still enjoy the benefit of sustainably generated electricity.

Around 6.5 GW of offshore wind farm capacity is planned to be built in German waters by 2020, to be followed by an additional 8.5GW by 2030. 

By then, the Denmark energy hub should be nearing completion, taking European renewables to a whole new level.

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Jun 14, 2021

W3 Energy signs technical operations contract with Luxcara

Dominic Ellis
3 min
W3 Energy and Luxcara sign technical operations contract ahead of Global Wind Day tomorrow and new study showing Poland leading Europe's growth

W3 Energy has signed a contract with Luxcara for onsite technical operations management for the Önusberget wind farm, which is Europe's largest single onshore wind farm. 

The wind farm, located outside of Piteå in northern Sweden, plans to have 137 wind turbines on full installation, with an expected capacity of more than 750 MW.

W3 Energy will be responsible for onsite technical operations management and local accounting services as well as operation and maintenance of the electrical infrastructure and transformer stations.

"This contract strengthens our position as a key player in onsite technical operations management. The Önusberget wind farm is the largest single-site wind power project in Europe and we are proud that Luxcara gives us the trust to support with the operational management of their investment", says W3 Energy's COO André Sjöström.

"The contract with Luxcara is extremely important to us and means that we take a firm grip on our home region. This contract allows us to continue to grow and we plan to continue to recruit in Piteå, Umeå, and Skellefteå."

The new contract with Luxcara means that W3 Energy manages approximately 15% of the renewable energy produced in Sweden and lays the foundation for continuing to build growth in other regions.

"Luxcara is an internationally respected asset manager in renewable energy, with high-quality investment criteria and a strong focus on diversity and sustainability. We share their view on sustainability, with a strong focus on environmental as well as social and ethical aspects", stated W3 Energy's CEO Pär Dunder.

Its past engagement with W3 combined with their track record from other large projects and their local experience were decisive factors for choosing W3 Energy, according to Philip Sander, Managing Director of Luxcara.

Global Wind Day will be held tomorrow (June 15), to promote wind's potential to reshape our energy systems, decarbonise economies and boost jobs and economic growth.

Onshore wind is now the cheapest form of new power generation in most of Europe, and offshore wind is not far behind with costs having fallen over 60% in three years, according to WindEurope.

Adrian Timbus, ETIPWind Chairman, said: “Wind energy can help electrify 75% of Europe’s energy demand and thereby deliver climate neutrality by 2050. But we must prioritise the development of the necessary technologies: next generation onshore and offshore turbines, electrification solutions for transport and for industry, and electrolysers for renewable hydrogen.”

Poland leads Europe's wind growth

Poland saw Europe's biggest increase in wind turbine energy production between 2000 and 2018, according to a Save on Energy study, and produced the fourteenth highest percentage of electricity by wind power overall in 2018. 

Czechia has seen second highest percentage increase in electricity production generated by wind power. Despite having the second lowest proportion of electricity generated by wind power in 2018, the country previously produced the lowest percentage overall in 2000, so it has still seen a significant increase in wind turbine energy production over the years.

France has the third largest increase in wind turbine energy production throughout the period studied, with electricity production generated by wind power increasing from 0.009% in 2000, to 4.9% in 2018, while neighbouring Belgium experienced the fourth highest increase in wind energy production, with almost 10% of electricity produced being generated by wind power in 2018, compared to 0.02% in 2000.

Although Ukraine boasted the lowest percentage of electricity produced by wind turbines in 2018 (0.7%), the country had the fifth largest percentage increase since 2000, since only 0.003% of electricity production was generated by wind turbines.

By comparison, Denmark, Luxembourg and Spain each ranked as having the lowest percentage increases when it came to the percentage of electricity production generated by wind turbines between 2000 and 2018, and they lag considerably behind other European nations.

The EU wants wind to account for 50% of the continent's electricity by 2050. The Romanian Wind Energy Association recently launched a Code of Good Practice for renewable energy.

Top 10 countries in Europe for wind growth

1. Poland
2. Czechia
3. France
4. Belgium
5. Ukraine
6. Turkey
7. Norway
8. Austria
9. UK
10. Finland 

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